How GDPR Impacts Business?

The legislation passed by the European Union (EU) - the General Data Protection Regulation (GDPR), focuses on safeguarding EU citizens' privacy and personal data. It was implemented in May 2018. Today, companies are looking to hire individuals with GDPR Certification to help them understand the law and ensure it is properly followed. The GDPR applies to all businesses that process the personal data of EU citizens, regardless of their location. In this blog, we will explore What is GDPR, its purpose in protecting individual privacy rights, the significance of GDPR certification for businesses, and its relevance in today's data-driven world. It is crucial for companies to understand GDPR and its implications to ensure compliance and build customer trust in an increasingly interconnected digital landscape.

Table of Content

1. Key Principles of GDPR
2. Impact on Businesses
3. GDPR's consequences for consumer interaction
4. Conclusion

Key Principles of GDPR

The following are the key principles of the GDPR: 

1. Lawfulness, fairness, and transparency: Businesses must process personal data lawfully, fairly, and transparently. This means providing individuals with clear and concise information about how their data will be used and obtaining their explicit consent. 
2. Purpose limitation: Personal information must only be gathered for genuine, clear, and defined objectives. Businesses should not use the data for other purposes without obtaining additional consent. 
3. Data minimisation: Only the necessary personal data should be collected and processed. Businesses should avoid collecting excessive or irrelevant data. 
4. Accuracy: Personal information must be current and correct. Businesses should take reasonable steps to rectify any inaccuracies promptly. 
5. Storage limitation: Personal data should not be kept for longer than necessary. Businesses should establish appropriate retention periods and delete or anonymise data once the purpose of its collection is fulfilled. 
6. Integrity and confidentiality: Businesses must implement measures to ensure the security and privacy of personal data. This includes protecting against unauthorised access, loss, or destruction. 
7. Accountability: Businesses are responsible for complying with GDPR requirements. They must demonstrate their compliance and maintain documentation of data processing activities.

Impact on Businesses

The following points highlight the impact of GDPR on businesses: 

1. Expanded territorial scope: Even if your business is based outside the EU, if you process the personal data of EU citizens, the GDPR applies to you. Companies worldwide need to assess their data processing activities to ensure compliance. 
2. Consent requirements: The GDPR sets a higher standard for obtaining consent from individuals. People must consent out of their own accord and be specific, informed, and unambiguous. Pre-ticked boxes or implied consent are no longer valid. Businesses need to review their consent mechanisms and make necessary adjustments. 
3. Enhanced rights for individuals: The GDPR grant individuals several rights, including the right to access their data, the right to rectify inaccuracies, the right to be forgotten, and others. Businesses must have processes in place to facilitate the exercise of these rights. 
4. Data breach notification: In a data breach that risks individuals' rights and freedoms, businesses must inform the regulatory authorities and affected individuals within 72 hours. This emphasises the need for robust data security measures and incident response plans. 
5. Data Protection Impact Assessments (DPIAs): Businesses engaging in high-risk data processing activities, such as large-scale profiling, must conduct DPIAs. These assessments help identify and minimise privacy risks and ensure compliance with GDPR requirements. 
6. Potential fines and penalties: Non-compliance with GDPR can result in significant fines. The maximum penalties can reach up to 4% of the annual global turnover or €20 million, whichever is higher. Businesses must take GDPR compliance seriously to avoid financial and reputational damage.

GDPR's consequences for consumer interaction

The GDPR's standards for gaining consent are harsher since the subject must have the right to withdraw consent at any time and because there is a presumption that consent won't be valid unless separate consent is acquired for various processing activities. 

This implies that you must be able to demonstrate that the person gave their consent to do a certain activity, like receiving a newsletter. Assumptions, the addition of a disclaimer, and simply offering an opt-out option are not permitted. 

To comply with double opt-in regulations and email marketing best practices, businesses have had to examine their procedures, applications, and forms. Prospects must complete a form or click a box to sign up for communication and confirm their actions in a subsequent email. 

When a person objects to receiving the message, organisations must demonstrate that consent was provided. As a result, any kept data must include a time-stamped audit trail and reporting information that shows what the contact opted into and how. Even if a vendor or outsourced partner was in charge of compiling the data, you still obtain the required permission information if you buy marketing lists. 

In the business-to-business sector, sales representatives meet potential clients at trade shows, exchange business cards, and then add the connections to the company's mailing list once they return to the office. This will not be achievable in 2020.

Conclusion

In conclusion, the GDPR has significantly changed how businesses handle personal data. It has placed individuals' rights and privacy at the forefront and encourages companies to adopt responsible data-handling practices. By understanding and complying with the GDPR, businesses can avoid hefty penalties and gain a competitive edge by building trust with their customers and establishing themselves as responsible custodians of personal data. Embracing data privacy and protection is not just a legal obligation but a vital step towards a more secure and ethical digital ecosystem.  

Disclaimer: This content is sponsored and does not reflect the views or opinions of Ground Report. No journalist is involved in creating sponsored material and it does not imply any endorsement by the editorial team. Ground Report Digital LLP. takes no responsibility for the content that appears in sponsored articles and the consequences thereof, directly, indirectly or in any manner. Viewer discretion is advised.

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