The General Data Protection Regulation (GDPR) is a comprehensive data protection law that became enforceable on May 25, 2018. It was enacted by the European Union (EU) to protect the privacy and personal data of EU citizens for transactions that occur within EU member states. However, it also affects any organization outside the EU that offers goods or services to, or monitors the behavior of, EU residents. Thus, GDPR has a wide-reaching impact on global business practices concerning data privacy and security.
GDPR is built on several key principles that dictate how personal data should be handled. These include lawfulness, fairness, and transparency; purpose limitation; data minimization; accuracy; storage limitation; integrity and confidentiality (security); and accountability. Under GDPR, personal data is defined broadly and includes any information relating to an identified or identifiable natural person (‘data subject’). This can range from names, email addresses, and ID numbers to location data, IP addresses, and cookies.
One of the central requirements of GDPR is that companies must obtain explicit consent from individuals before collecting, processing, or storing their personal data. Individuals also have the right to access their data, correct inaccuracies, have their data erased (the right to be forgotten), restrict processing, and the right to data portability. GDPR mandates that organizations must notify the appropriate data protection authorities within 72 hours of becoming aware of a data breach involving personal data.
GDPR places significant emphasis on accountability and governance. Organizations are required to implement appropriate technical and organizational measures to ensure and demonstrate compliance. This may include internal data protection policies, staff training, internal audits of processing activities, and maintaining relevant documentation on processing activities. Larger organizations or those processing sensitive or large amounts of data may also be required to appoint a Data Protection Officer (DPO).
Non-compliance with GDPR can result in hefty fines, which are determined based on the severity of the breach and the company’s actions to mitigate the damage. Fines can go up to €20 million or 4% of the company’s annual global turnover, whichever is higher, for the most serious infringements. Besides financial penalties, non-compliance can also lead to reputational damage and loss of consumer trust.
GDPR has set a new benchmark for data protection laws globally, influencing other jurisdictions to consider stronger data protection practices and regulations. Its implementation has prompted organizations worldwide to reassess their data handling and privacy measures, ensuring greater protection for individuals’ personal data in the digital age. As technology and digital services continue to evolve, GDPR remains a critical framework guiding the ethical and secure processing of personal data.