Why the GDPR Is Important, Even for Businesses Outside the EU
Why the GDPR Is Important, Even for Businesses Outside the EU
With the GPDR only a few days away, we take the time to consider what this new set of regulations means for data processors and consumers.
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The General Data Protection Regulation or GDPR is one of the hottest topics of discussion among online business owners. Late May, when many people would plan for long summer vacations to enjoy, many entrepreneurs will be worried about the major changes that they have to make while conducting business. On May 25 of this year, the European Union will start to implement the GDPR, which is a set of rules that focuses more on the protection of its people’s data privacy and has stated some new guidelines that need to be followed while collecting consumer data.
We have in fact talked a lot about the privacy and data protection earlier and organizations have told you that certain types of information are collected so that they can serve you better. We are talking about banking information, social media posts, contacts, and even the IP address and the site that you visit. All this information is actually stored so that organizations can offer you more relevant and targeted services and offer a better customer experience.
What Is the General Data Protection Regulation?
A new European privacy regulation will come into effect on May 25 of this year across the entire EU and also outside the EU. It will actually apply to all software development companies that are into online selling and store personal information about people in Europe and companies located in other continents. This will offer greater control on personal data and also assure the customers that their information is protected and secured. As per the directive, any personal data that is related to a person like an email address, photos, bank details, etc. will be included.
The GDPR follows the general EU data protection rules and it creates various new rights for the individuals who process personal data. By processing of personal data, we mean any operations or a set of operations that is performed on sets of personal data by normal or automated means.
Organizations with an international presence like eBay, Amazon, Google, etc. have tried to meet the requirements and have created privacy centers to give users more control over their online information and to maintain its privacy.
What Comes Under the GDPR Rules?
- The right to access: Here individuals have the right to request access to their own personal data and ask any company storing their data how they are using it. The company should provide the copy of the data without claiming any charges and also in an electronic format if it is requested.
- Right to data portability: People have the right to transfer their data from one service provider to another and this should happen in a machine-readable and commonly used format.
- Right to delete data: If, in any case, the consumer is no longer a customer, or they want to withdraw their consent from the specific company to use their personal information, then they have the right to delete their data.
- Right to be informed or notified: This covers any data from companies that they have gathered and consumers must be informed about it. In case of any data breach, the individual should be informed within 72 hours of the event.
- Right to restriction: Consumers can request that their data not be used for processing; thus, though their record can remain in place, it should not be used.
- Right to correct the information: This ensures that consumers can update their data in case it is outdated, incomplete, or incorrect.
The GDPR is the means of empowering individuals by giving them more control over their data and how it is collected and used by organizations.
How to Prepare Your Business for May 25
The main component of GDPR is to maintain privacy by design. This means that all the departments in the company should have a close look at the data they are going to handle and consider the essential steps necessary to become compliant with GDPR regulations.
Define the data that you need from the consumers: There is no need to keep more information than necessary and so you can remove any data that is not used. As your business may have gathered some data that does not have any benefit, then it is important to consider what you should keep and what you should not.
Guard against data breaches: Implement safety measures throughout your infrastructure so that there are no data breaches. This means that the right security measures are adopted to safeguard consumer’s data. Organizations should take action to inform authorities or individuals in the case of a data breach.
Create a map of the company’s data: It is very important to identify the areas from where your entire business data comes and also document what is to be done with the data, who can use the data, and consider if there are any risks to it.
Follow some procedures to use the personal data collected: For this, you will need to establish the procedures and policies for how you can handle various situations like how the data will be transferred, how individuals may give consent in a legal manner, how consumers will be reached/protected in case of a data breach, and etc.
The Consequences of Non-Compliance to GDPR:
EU nations and most other countries have established some supervisory authorities to check the usage of personal data. The authorities are government-appointed bodies that have the power to enforce, inspect, and even penalize the way organizations are processing consumers' personal data. They are the authorities who enforce data protection requirements. If any organization is found to not be meeting the GDPR requirements, the authorities can levy fines and issue warnings, which can compel the organization to process the data properly and follow certain rules or even force them to cease processing altogether. The authorities may investigate any complaints that they receive from different measures and carry out the desired actions based on the gravity of the issue of the organization.
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