Our eCommerce experts explain what exactly is GDPR and what it can mean for your business. Does your business handle large amounts of data?
We know what you’re thinking, ‘not another confusing post on the GDPR’, but we’re going to do our best to explain the EU’s General Data Protection Regulation without leaving you in the depths of legal jargon. Our aim is to hopefully give you a better idea of what the GDPR is and what it means for your business…and hopefully help you to avoid any future bank-busting fines!
We all know how rapidly technology changes, and we’ve come a long way in the past two decades. The UK currently relies on the Data Protection Act 1998, but the use and storage of data has changed rapidly in that time and now there are more and more ways that data is being exploited. To bring the legislation up to date, the EU has spent four years working on the GDPR, which will see stricter fines for non-compliance and data breaches, as well as giving individuals overall more say in what companies can do with their data.
The EU hopes that the GDPR will bring more trust back into the digital economy, and as the legislation means that data protection rules will be more or less identical throughout the EU, this should also provide businesses with a clearer legal view.
The GDPR will take effect before the results of the Brexit vote come to fulfilment, therefore the UK will still comply for time being. However, the UK government is already working towards a solution once the UK leaves the EU, developing a new Data Protection Bill that effectively mimics the GDPR for UK law.
The GDPR is to take effect in all EU member states from 25th May 2018. It applies to and should be adhered by the company or organisation that requires the data, as well as the person or business doing the actual data processing. This will also affect international businesses if they are handling data that belongs to EU residents, they must also abide by the legislation.
There are a few things to keep in mind at all times when prepping for the GDPR so that you can avoid any of the hefty fines that come with a data breach.
You have 72 hours to inform your data protection authority of any data breach since becoming aware of it. You should be ready to provide a clear outline of what the breach is, how many people are affected, the consequences of the breach on those individuals and then your plan of action. Before this, you should also make sure you inform the people affected by the breach. If you fail to meet the 72-hour deadline, you will be at risk of paying a penalty of 2% of your annual worldwide revenue, or €10 million, whichever is greater. These figures double if you don’t follow any of the GDPR guidelines for processing data. These fines are however subject to the type of breach occurred. The important thing to remember is that they will favour those who follow the rules and meet the deadline.
Be proactive. Start prepping now so it isn’t as big of a change when 25th May rolls around. This is as good a time as any for a digital spring clean. Make sure the data you store is relevant and actually needed for a purpose, otherwise this will be a breach of GDPR when it comes into legislation. Check through all of your data and ensure it is up-to-date and accurate.
If you handle large amounts of data or if you send out regular marketing campaigns, it might be best to appoint a Data Protection Officer. It’s important you choose the right person for this as they will essentially be in control of your entire organisation’s compliance with the GDPR legislation.
The key part to all of this is to be transparent and prepared.
Good luck!