How GDPR is Transforming the Way Businesses Handle Data Privacy

On May 25, 2018, years of preparation ended. Across Europe, long-planned data protection reforms started to implement.

03:35 19 May 2023

On May 25, 2018, years of preparation ended. Across Europe, long-planned data protection reforms started to implement. Since the General Data Protection Regulations (GDPR) have been in place for around five years and have changed the world in how different countries deal with the data handling of their users. In this blog, we will guide you on the GDPR and how it changes the world of data handling, impacting various businesses across Europe.

Europe's previous data protection laws, some of which were made in the 1990s, were almost two decades old and have been replaced by GDPR. Since then, people have developed data-intensive lifestyles and regularly divulge their private information online. GDPR applies to all businesses that process the personal data of EU citizens. Since its introduction, GDPR has transformed the way companies handle data privacy.

According to the EU, GDPR aims to "harmonise" data privacy laws among all its member states while enhancing individual rights and protection. The GDPR aims to change how companies and other organizations handle the personal data of people who interact with them. Those violating the rules risk receiving significant fines and reputational harm.

What exactly is GDPR?

The General Data Protection Regulation can be considered the world’s strongest set of rules regarding data protection. These rules enhance how people access their information and what organizations can do with their data. GDPR emphasizes protecting individuals' data by regulating how businesses process, store, and transfer that data. GDPR applies to all personal data, including sensitive data such as health records, race, religion, and sexual orientation. GDPR also applies to any data identifying an individual, such as name, address, email address, or IP address.

Here are the seven principles of GDPR:

1. Lawfulness, fairness, and transparency: This principle requires that personal data be processed lawfully, fairly, and transparently. Businesses must provide a legitimate reason for processing personal data, and individuals must be informed about how their data will be used.
2. Purpose limitation: This principle requires that the data collected be for a specific purpose. And the business should only utilize the data for the purpose they intended.
3. Data minimization: This principle requires that personal data be adequate, relevant, and limited to necessary information. Businesses must ensure that they only collect what is necessary.
4. Accuracy: This principle requires that personal data be accurate and updated. Businesses must take reasonable steps to ensure that personal data is accurate and correct inaccuracies immediately.
5. Storage limitation: This principle requires that personal data not be kept for longer than necessary. Businesses must have a clear retention policy and must delete or anonymize personal data when it is no longer needed.
6. Integrity and confidentiality: This principle requires that businesses ensure the data's security, integrity, and privacy. Companies must have appropriate technical and organizational measures to protect personal data from unauthorized access, disclosure, or destruction.
7. Accountability: This principle requires that businesses be accountable for their compliance with GDPR. Businesses must be able to demonstrate that they are complying with the regulations of GDPR and must be able to provide evidence of their compliance if requested by a supervisory authority or an individual.

Where does GDPR apply?

The rule of GDPR applies to all those organizations that are involved in the handling of the personal data of their customers and individuals. This personal data includes all the information that allows a living person to be, directly or indirectly, identified from it. This can be as obvious as an individual’s name, address, etc.

A few unique categories of sensitive personal data are given more excellent protection under GDPR. A person's genetic information, biometric data, health information, political opinions, religious beliefs, trade union membership, and information regarding their sexual life or orientation are all examples of personal data.

GDPR requirements for businesses

The GDPR imposes several requirements on businesses that process personal data. These requirements are there to ensure that businesses handle personal data in a transparent, secure, and responsible way. Here are some of the key requirements that GDPR imposes on businesses:

• Data Protection Officer: Businesses must appoint a Data Protection Officer (DPO) if they process large amounts of personal or sensitive personal data or if their core activities involve regular and systematic monitoring of individuals.
• Data Processing Agreements: Businesses must have a written contract with any third-party processors that process personal data on their behalf. This contract must set out the processing activities, the purpose of the processing, and the processor's obligations.
• Privacy Notices: Businesses must provide individuals with clear and concise information about how they plan to use their data.
• Data Breach Notification: Businesses must notify individuals and the relevant supervisory authority within 72 hours of becoming aware of a personal data breach.
• Data Protection Impact Assessments (DPIA): Businesses must conduct a DPIA when processing personal data that is likely to result in a high risk to the rights and freedoms of individuals.

Challenges of GDPR compliance

GDPR compliance can be challenging for businesses, particularly those that process large amounts of personal data. Some of the main challenges that businesses face when trying to comply with GDPR include:

• Lack of Resources: GDPR compliance requires businesses to invest time, money, and resources into developing policies and procedures, training staff, and implementing technical measures to protect personal data.
• Complexity: GDPR is a complex regulation that requires a deep understanding of data protection principles and the legal requirements for processing personal data.
• Third-Party Compliance: Businesses that rely on third-party processors must ensure that those processors are also GDPR compliant.
• Global Compliance: GDPR applies to all businesses that process the personal data of EU citizens, regardless of where the business is. This means businesses operating globally must comply with multiple data protection regulations.

GDPR Compliance

We understand that showing your compliance with GDPR can be challenging and exhausting. GDPR is one of the strictest regulations out there, and understandably so. Personal data is something that is no joke and has to be kept private at all costs. Assuring compliance with GDPR can be difficult, but you can ease your steps to GDPR compliance with proper training. By taking on GDPR awareness training, you can educate yourself on the procedures for ensuring your compliance. GDPR training ensures all employees understand their roles and responsibilities regarding data protection and are aware of all the protection principles outlined in GDPR. This can help prevent data breaches, improve data security and build customer trust. Businesses should invest in regular GDPR training for their employees to ensure they remain up-to-date with the latest data protection practices and maintain GDPR compliance.

Conclusion

In conclusion, the General Data Protection Regulation (GDPR) has transformed how businesses handle data privacy. GDPR has provided a comprehensive framework for businesses to process, store, and transfer personal data transparent, fair, and lawfully. By complying with GDPR, businesses can build customer trust, improve data security, and avoid costly fines. GDPR has also encouraged businesses to adopt a more proactive approach to data protection and has raised awareness of the importance of data privacy among consumers. As a result, businesses are taking data privacy seriously, and GDPR has become a crucial driver of change in the world of data protection. In short, GDPR is transforming the way businesses handle data privacy, and all businesses need to understand and comply with its principles.

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