GDPR: Key Requirements, Rights, Impact, And Penalties

Data privacy and security have become increasingly important concerns for individuals and businesses in recent years. The General Data Protection Regulation (GDPR) was introduced in 2018 to strengthen data protection laws across the European Union. It ensures that businesses prioritize data privacy. In this blog, we will discuss the key requirements of GDPR, rights under the law, and its impact on businesses. We will also discuss the penalties for non-compliance with GDPR.

Contents

1 What Is GDPR?
2 What Are The Requirements For GDPR Compliance?
3 Data Subject Rights Under GDPR
4 Impact Of GDPR Compliance On Businesses
5 Penalties For Non-Compliance With GDPR
6 Conclusion

What Is GDPR?

What Is GDPR? GDPR stands for General Data Protection Regulation. It is a European Union regulation that was enacted in 2018 and governs the protection of the personal data of EU citizens. GDPR provides individuals with greater control over their data and sets guidelines for how organizations collect, process, and store this data. Companies that fail to comply with GDPR may face hefty fines and legal consequences.

What Are The Requirements For GDPR Compliance?

To file GDPR compliance, organizations must adhere to several requirements, including:

1. Appointing DPO

The DPO (Data Protection Officer) is responsible for overseeing the organization’s GDPR compliance and ensuring that personal data is processed by the regulation. They must be an expert in data protection and have a good understanding of the organization’s operations. The DPO must be independent and report directly to the highest level of management. The appointment of a DPO is mandatory for organizations that process large amounts of personal data or engage in systematic monitoring of individuals.

2. Documenting

Organizations must maintain detailed records of all personal data processing activities. This includes the purposes of the processing, the categories of personal data processed, and the recipients of the data. Moreover, this information must be readily available to the relevant supervisory authority upon request.

3. Obtaining consent

3. Obtaining consent Organizations must obtain explicit consent from individuals for the collection and processing of their personal data. Consent must be freely given, specific, informed, and unambiguous. Organizations must also provide individuals with the right to withdraw their consent at any time.

Also, individuals have the right to access their personal data and to request that it be deleted. Organizations must provide individuals with a copy of their personal data free of charge upon request and must delete the data unless there are legitimate reasons for retaining it.

4. Implementing security measures

Organizations must implement appropriate technical and organizational measures to ensure the security of personal data. This includes measures such as encryption, access controls, and regular security assessments. Moreover, the measures implemented must be appropriate to the nature, scope, context, and purposes of the processing.

5. Reporting data breaches

Organizations must report any data breaches to the relevant supervisory authority within 72 hours of becoming aware of the breach. This includes breaches that result in accidental or unlawful destruction, loss, alteration, unauthorized disclosure of, or access to personal data. Organizations must also notify individuals if the breach is likely to result in a high risk to their rights and freedoms.

6. Conducting assessments

Organizations must conduct a Data Protection Impact Assessment (DPIA) when processing personal data that is likely to result in a high risk to the rights and freedoms of individuals. Moreover, the DPIA must identify the risks associated with the processing and measures to mitigate those risks. Also, the supervisory authority must be consulted if the DPIA identifies a high risk that cannot be adequately mitigated.

Data Subject Rights Under GDPR

Data Subject Rights Under GDPR Under the General Data Protection Regulation (GDPR), data subjects have several rights related to their personal data. These rights include:

Right to access: Data subjects have the right to obtain confirmation from an organization as to whether or not their personal data is being processed, and if so, to access that data and receive a copy of it.
Right to rectification: Data subjects have the right to have inaccurate personal data corrected by an organization.
Right to erasure: They have the right to have their personal data erased by an organization in certain circumstances, such as when the data is no longer necessary for the purposes for which it was collected.
Right to restriction of processing: Data subjects have the right to request that an organization restrict the processing of their personal data in certain circumstances, such as when the accuracy of the data is in dispute.
Right to data portability: They have the right to receive their personal data from an organization in a structured, commonly used, and machine-readable format, and to transmit that data to another organization.
Right to object: Data subjects have the right to object to the processing of their personal data by an organization in certain circumstances, such as when the processing is for direct marketing purposes.
Right not to be subject to automated decision-making: Data subjects have the right not to be subject to a decision based solely on automated processing, including profiling, that produces legal or similarly significant effects.

Impact Of GDPR Compliance On Businesses

The General Data Protection Regulation (GDPR) has had a significant impact on businesses around the world, regardless of their location. Here are some of the ways GDPR has affected businesses:

Increased accountability: GDPR requires businesses to be more accountable for how they process personal data. Organizations must implement appropriate technical and organizational measures to protect personal data and demonstrate their compliance with GDPR.
Higher penalties for non-compliance: It introduces significant financial penalties for non-compliance.
Improved data subject rights: It gives individuals greater control over their personal data, including the right to access, rectification, erasure, and data portability. Hence, businesses must be able to respond to data subject requests and provide clear and concise privacy notices.
Increased transparency: GDPR requires businesses to be transparent about their data processing activities, including the legal basis for processing, the categories of personal data processed, and the recipients of personal data.
Changes to data processing practices: GDPR requires businesses to implement appropriate technical and organizational measures to protect personal data. This may involve changes to data storage, processing, and security practices.
Loyalty and trust: Businesses that take GDPR seriously and prioritize data protection are more likely to gain the trust and loyalty of their customers. Ultimately, this enhances their reputation.

Penalties For Non-Compliance With GDPR

The General Data Protection Regulation (GDPR) imposes significant penalties for non-compliance with its data protection requirements. These penalties ensure that businesses take GDPR seriously and prioritize data protection.

The maximum penalties for non-compliance with GDPR are:

Fines of up to 4% of global annual revenue or €20 million, whichever is higher, for serious violations such as failure to obtain consent for data processing, failure to implement appropriate security measures, or failure to respond to data subject requests.
Fines of up to 2% of global annual revenue or €10 million, whichever is higher, for less serious violations such as failure to appoint a Data Protection Officer or failure to maintain proper records of data processing activities.

In addition to financial penalties, businesses that fail to comply with GDPR may also face damage to their reputation and loss of customer trust. GDPR gives individuals the right to bring legal action against organizations that fail to protect their personal data, which can result in significant financial and reputational damage.

Conclusion

In conclusion, GDPR is a comprehensive data protection regulation that imposes significant obligations on businesses that handle personal data. While compliance with GDPR can be challenging, it is essential for protecting the privacy rights of individuals and avoiding significant financial penalties. Businesses must take GDPR seriously and implement appropriate data protection measures, such as conducting regular risk assessments, implementing technical and organizational measures, and maintaining proper records of data processing activities. If you need help with GDPR compliance, seek professional advice to ensure that you are meeting your obligations under the regulation.

If you are looking to implement any of the Infosec compliance frameworks such as SOC 2 compliance, HIPAA, ISO 27001, and GDPR compliance, Impanix can help. Book a Free consultation call with our experts or email us at [email protected] for inquiries.