The EU’s General Data Protection Regulation (GDPR) doesn’t just impact e-commerce sellers based in the European Union. Even non-EU-based organizations must comply, regardless of a European presence.
If you are an organization that provides products or services to people and companies in Europe or collects data in connection with products and services, then the GDPR applies to you. It is called the “extra-territorial effect” of the law.
Does GDPR Apply to EU Citizens Outside of the EU?
As an e-commerce store outside of the EU, this means getting permission from your customers prior to collecting data. In addition, you are required to create a good e-commerce privacy policy and to take steps to ensure you are in line with the ePrivacy Directive (a similar law in Europe).
GDPR is complex legislation, and you can’t afford to be ignorant about it. The best way forward is prevention rather than cure. Thus, it’s worth investing time and effort to ensure your business is GDPR compliant.
Some key requirements include:
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- Disclosing any data breach within 72 hours under the GDPR notification requirements.
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- Obtaining explicit consent from individuals before collecting, using, or disclosing personal information.
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- Providing individuals with clear and concise information about their GDPR rights and guaranteeing that they can easily exercise these rights.
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The GDPR has only two exceptions. First, GDPR doesn’t cover “personal or home activity” and only applies to businesses. Businesses with less than 250 employees are also exempt.
All in all, GDPR is a positive step toward protecting consumers’ personally identifiable data. At the end of the day, this legislation will help improve security and reduce fraud.
To learn more, take a look at Understanding GDPR and Cookie Consent in E-Commerce.
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