What is GDPR Compliance?

GDPR is General Data Protection Regulation required that the businesses keep the personal data of the EU citizens safe. Non-compliance can cause much dearly for the companies.

Businesses that run from Europe need to know everything about GDPR. GDPR came into force across European Union from 25th May 2018.

It is common that businesses collect the data of the customers. Businesses in European Union countries, however, have to follow GDPR and comply with the rules about protecting the data of the customers.

This is a huge challenge for companies as it leaves much to interpretation. A reasonable level of protection required to provide personal data ‘reasonable’ is not defined.

What is GDPR?

The European Parliament adopted GDPR in the year 2016. It has provisions that require the protection of personal data and the privacy of citizens of European Union.

The requirements are same for all the 28 European Union member states. The standard of GDPR is very high and to administer it requires a significant investment.

Many businesses from outside EU feel that GDPR puts them at a disadvantage when doing business with European companies. If the data of customers is misused, the potential fines the businesses might face are increased.

On the other hand, it comes easy for the people to know what information businesses are collecting and having on them. This brings more transparency to people about the data collected and how it used. People will have a chance to prevent businesses collection unnecessary data from them.


Data Protection Act 1998 in UK Law or the Data Protection Directive 1995 has rules which are similar to the regulations of GDPR. The directive, however, was created when the popularity of social media was not this much.

Google, Facebook or Twitter collected information such as names, email addresses and other personal information and people without actually understanding what they agree to give away much data to these tech giants.

Introduction of GDPR ensured that the collection of personal data minimized. The businesses must delete the personal data that they do not need, restrict the access and keep the data secured through the lifecycle.

New Requirements of GDPR

  • Privacy by Design is an integral part of EU data regulations. The data collection minimized and customer consent for processing the data explicitly formalized.
  • Another new requirement is that the companies will have to analyze the risk to consumer privacy when data is being processed.
  • GDPR extends the right to erase and be forgotten. Consumers now can request to delete their data or stay out of the public view.
  • The new GDPR rules will extend outside European Union also. For example for all the e-commerce companies that do not run from EU but collect data from the objects of EU, GDPR’s all requirements will be in effect.
  • Another new requirement is that companies have to notify the data authorities within three days of discovering a breach of personal data.
  • The breach notification oversights will cost the companies dearly. GDPR has tiered penalty structure. A fine will be collected from the global revenues of the companies if infringements are found.

Why is GDPR important?

GDPR created many new rights for the consumers and obligations for companies that process the personal data of individuals. GDPR also defines the processing of personal data.

This includes the collection, recording of data, retrieval, usages, disclosure or structuring the data. GDPR is getting much attention as there is the vast territorial scope. It applies to all the businesses that are based in EU and process the personal data anywhere around the globe.

GDR applies to the processing of personal data by public or private organizations which are in the union.

GDPR applies to even that e-commerce that processes the personal data of consumers such as the name, shipping address or the information of banks, etc.

Another important thing that makes GDPR important is the number of fines the companies will subject to for non-compliance.

Reports suggested that if the customers found out that the companies are misusing their data, they will not forgive it and might boycott the company.

The digital transformation of companies is continuing, and it is also becoming important that the companies should be accountable for monitoring and be protecting the data of the consumers.

Types of Data Protected by GDPR

  • Name, address and other necessary identity information
  • IP address, location, and other web data.
  • Health data
  • Biometric, racial or ethnic data
  • The political opinions of the consumers
  • Sexual orientation

Finally, the companies that collect data from EU objects and fall under GDPR, must have an awareness of the consumer data, where it stored and who is accessing it. They must carefully permit others to access the personal data of the consumers.

GDPR is good business practice, and the reputational image of the companies depends on how it is adopted. If customers and partners feel that an organization is responsible and protects the data and privacy of the customers, the relationship will, and they can even recommend the organization to other potential clients.

Non-compliance could mean that the businesses negatively impacted. A Data Protection Officer needs to be appointed by the organizations under GDPR. Failure to select a DPO might result in a fine for the organization.

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