How to Ensure That Your Business Is GDPR Compliant

The General Data Protection Regulation (GDPR), different from the California Consumer Privacy Act (CCPA), refers to the stringent data privacy and security regulations drafted and imposed by the European Union. It replaces the Data Protection Directive 95/46/EC, which was an EU directive regulating the processing and free movement of personal data.

The GDPR was adopted on April 14, 2018, and came into force on May 25, 2018. The GDPR applies to all companies processing the personal data of EU citizens, regardless of where the company is located—making it much more difficult for companies to ignore.

Before explaining how to achieve GDPR compliance, we will explain the need for aligning with this regulation.

Why Is GDPR Compliance Necessary?

There are a number of reasons GDPR compliance is necessary for online businesses. The first reason is that, under the GDPR, companies are required to take steps to protect their customers’ data against breaches and, if an incident occurs, must report any breaches within 72 hours.

Perhaps the most significant change brought about by the GDPR is the requirement for companies to obtain unambiguous consent from individuals before collecting, using, or sharing their personal data. Companies must also provide individuals with clear and concise information about their rights under the GDPR and ensure that individuals can easily exercise their rights with regard to the collection of their personal data.

How to Determine if Your Business Is GDPR Compliant

Specifically, companies that are GDPR compliant ensure that their users’ personal data is:

• Legitimate and necessary for the purposes for which it is being processed.
• Accurately and carefully collected.
• Processed in a transparent, consistent, and fair manner.
• Erased or destroyed when no longer needed and subject to regular monitoring.

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How to Make Your Business GDPR Compliant

Should you not meet the requirements listed above, here are the strategies to adopt to ensure your company is fully compliant:

• Review your data handling practices The GDPR requires businesses to have a clear understanding of how and where personal data is being processed and stored. Review your current processes and identify any areas that may be in violation of the GDPR.
• Create a data protection policy This privacy policy should outline how you plan to protect user data, who has access to it, and what happens to it when someone leaves the company.
• Keep employees informed and updated Employees need to understand the intricacies of your new data protection policy, how to properly handle user data, and when they can and cannot share customer data.
• Be sure on-page content is compliant Review your website and marketing materials for compliance with GDPR requirements. If needed, make changes to ensure that you’re not collecting or sharing user data without consent.
• Allocate a Data Protection Officer (DPO) Under the GDPR, all data controllers must appoint a Data Protection Officer (DPO), unless they can demonstrate that they do not process personal data on a large scale or that their core activities do not entail regular and systematic monitoring of individuals (Article 37).

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What Are the Consequences of Non-Compliance?

Businesses that collect and store personal data from EU citizens must comply with the GDPR or face significant fines. Companies can be fined up to 2% of their global annual revenue or up to €10 million (approximately $10.6 million), whichever is greater—making it a much more costly mistake to ignore than the previous data protection directive.

As you can expect, this is a significant incentive to adhere to the GDPR’s stringent requirements. Despite the potential penalties, however, many businesses are still reluctant when it comes to GDPR compliance.

As an example of this, the French data protection authority, the CNIL, has fined both Google and Facebook a combined €210 million for failure to comply with the GDPR’s transparency and information requirements. These fines are among some of the largest the EU has handed out to date, and it sends a clear message that regulators will not hesitate to levy hefty penalties for non-compliance. Businesses that have not yet completed their GDPR compliance efforts should do so immediately, or risk significant financial consequences.