GDPR

What Is the General Data Protection Regulation (GDPR)?  

Did you know that nearly 73% of European businesses say the GDPR has pushed them to manage customer data better? Plus, 62% have increased their spending on cybersecurity! So, what exactly is the GDPR?

The General Data Protection Regulation (GDPR) is a data privacy law introduced and established by the European Union. The scope of this law extends to protecting the personal data and privacy of data subjects in the EU and European Union Economic Area (EEA). A data subject is an individual whose personal information is collected and processed by an organization.

Comprising 99 articles across 11 chapters, the GDPR establishes clear guidelines for how organizations must collect, process, and safeguard personal data with the goal of ensuring transparency, accountability, and enhanced security.

  What is the purpose of the GDPR?

The purpose of the General Data Protection Regulation (GDPR) is to protect the privacy and personal data of individuals within the European Union (EU). In a world where our digital footprint is constantly expanding, the GDPR ensures that every piece of information we share is handled with care, transparency, and respect.

At its heart, the GDPR is about protecting your privacy. It requires businesses to seek clear and informed consent before collecting personal data while also limiting the amount of data they can gather—only what's necessary for its purpose. This regulation empowers individuals with key rights: you can access, correct, or delete your data; transfer it elsewhere; and even object to how it’s being used.

For businesses, the GDPR provides a clear framework for managing data responsibly across the entire EU, giving organizations the ability to operate with trust and integrity in today’s data-driven world. It's not just about compliance—it’s about building a safer, more transparent digital environment.

According to CISCO's consumer privacy survey, 61% of individuals in countries with established data protection laws reported that these regulations had a positive impact.

 History of the GDPR     

In Europe, privacy is considered a fundamental human right, supported by key legal frameworks like Article 12 of the Universal Declaration of Human Rights and Article 8 of the European Convention on Human Rights. The European Charter of Fundamental Rights further emphasizes this with Article 7.

These principles laid the groundwork for strong data protection laws. As technology advanced and privacy concerns intensified, the need for a unified approach became evident, leading to the development of the GDPR to modernize and harmonize data protection laws across the European Union. As of 2024, there are 138 countries globally with data and consumer privacy laws, reflecting the growing international emphasis on protecting personal information.

Let’s take a look at some of the crucial milestones that shaped the GDPR:

• As technology advanced, concerns grew about privacy and the use of personal data. In response, the EU introduced the Data Protection Directive (95/46/EC) in 1995 to regulate responsible data handling in the digital age. The directive set fundamental data protection standards for all EU countries and permitted each member state to establish an independent national authority to oversee the processing of personal data.

• The rise of the digital economy exposed flaws in the 1995 directive, with inconsistent data protection across the EU and no defenses beyond its borders. In 2009, the European Commission reviewed the directive, seeking a stronger, future-proof framework for the digital age.

• On January 25, 2012, the European Commission launched a major reform of EU data protection laws, sparking years of negotiations to strengthen privacy rights, simplify regulations for businesses, and increase accountability.

• After four years of discussions, the GDPR was adopted on April 27, 2016, replacing the 1995 directive with a unified EU regulation. Organizations had two years to comply with the new rules.

• The GDPR came into full effect on May 25, 2018, marking a significant shift in global data protection standards. It introduced stricter rules for data protection, substantial fines for non-compliance, and strengthened individual rights, including the right to access, erase, and transfer personal data.

Today, 67% of Europeans are familiar with the GDPR, and 62% of UK consumers report feeling more comfortable sharing their data since the introduction of the data protection law, highlighting its positive impact on consumer trust and awareness.

 Key definitions in the GDPR     

Article 4 of the GDPR provides key definitions that clarify the regulation’s requirements. Let’s explore some of these essential terms.

• Personal data: Personal data refers to any information that can identify an individual, directly or indirectly, including names, ID numbers, locations, online identifiers, and traits related to their identity. It encompasses any data that helps pinpoint who someone is, making it essential to their identity.

• Processing: Processing refers to any activity carried out on personal data, whether it's done manually or through automated systems. This includes collecting, storing, modifying, using, sharing, and deleting the data. Essentially, it covers every step in handling data from start to finish.

• Restriction of processing: Restriction of processing means marking or labeling personal data in a way that limits how it can be used or shared going forward.

• Controller: A controller refers to any individual or organization that determines how personal data is handled and for what reasons. EU laws or specific country laws may also define who the controller is or how to identify them.

• Processor: A processor refers to an individual or organization that manages personal data for the controller, following their specific instructions.

• Third party: A third party is anyone or any organization that isn’t the data subject, the processor, or someone authorized by them to handle the data. This includes outside organizations or agencies that don’t have direct control over the data.

• Consent: Consent means a person clearly and willingly agrees to the use of their personal data. This approval must be specific and well-informed, often provided through a clear statement or affirmative action. It ensures that individuals understand how their information will be processed and that they are giving informed approval.

• Personal data breach: A personal data breach happens when a security failure results in personal data being accidentally or illegally destroyed, lost, altered, shared without permission, or accessed without authorization, regardless of how the data is handled.

 Seven core GDPR principles      

Article 5 of the GDPR outlines seven key principles for handling personal data responsibly. Here’s a closer look at them:

1. Lawfulness, fairness, and transparency: Personal data must be processed in a way that’s lawful, fair, and transparent to the individual. For example, if a company collects customer emails for marketing, it must inform the customers how their emails will be used and ensure that they agree to it.

2. Purpose limitation: Data should be collected only for specific purposes and not used for anything beyond that. For instance, if an online store gathers personal information to process an order, it can't later use that data for unrelated purposes like selling it to advertisers without consent.

3. Data minimization: Only collect the necessary data for a particular purpose. For example, a company should only ask for information like name and address when delivering a product—not extra details like marital status if it’s irrelevant to the transaction.

4. Accuracy: Organizations must maintain the accuracy of the data and keep it updated. For example, if a customer moves to a new address, the company should update its records to avoid sending packages to the wrong location.

5. Storage limitation: Data should only be retained for as long as necessary to fulfill the purpose. For instance, a company might need to store a customer’s payment details for a transaction but should delete or anonymize them once they are no longer needed.

6. Integrity and confidentiality: Personal data must be handled securely to prevent unauthorized access or leaks. For example, companies should encrypt sensitive data like credit card details and use firewalls to protect customer information from cyberattacks.

7. Accountability: Organizations should comply with the GDPR and should be able to demonstrate their compliance. For instance, they should maintain records of data processing activities and be ready to show how they protect personal data in audits.

 GDPR requirements for businesses     

Lawful basis and transparency

• Organizations with 250 or more employees, or those handling high-risk data, need to keep detailed records of their data activities to comply with the GDPR.

• Conducting a data protection impact assessment (DPIA) can be really helpful, even for smaller organizations.

• Your records should cover key details like why you're processing data, what types you're handling, who has access, any third parties involved, how you're protecting the data, and how long you plan to keep it.

• It's also important to let individuals know that you're collecting their data and explain why. As required by Article 12, this information should be included in your privacy policy and shared when you collect data. Make sure it's clear and easy to understand, especially for younger audiences.

Data security

• Companies need to integrate data protection into every aspect of handling personal data, following the principle of "data protection by design and by default." This means using technical measures like encryption and organizational strategies such as limiting data collection and ensuring proper deletion.

• Many productivity tools now include built-in end-to-end encryption to keep your communications and data secure. From email services to messaging apps and cloud storage, these features help protect your sensitive information. The GDPR encourages using encryption or pseudonymization whenever possible, so make sure these tools are secure and compliant with data protection standards.

• It's also important to have a security policy that keeps your team informed about data security practices. This should cover areas like email security, password management, two-factor authentication, device encryption, and VPN usage.

• Conducting a Data Protection Impact Assessment (DPIA) helps identify potential risks to customer data and develop strategies to minimize them. In the event of a data breach that compromises personal information, it’s crucial to inform the appropriate supervisory authority within a 72-hour window.

 

Accountability and governance

• As per "data protection by design and by default," companies need to designate someone responsible for GDPR compliance.

• When working with third-party vendors, choose those that are reliable and offer strong data protection. It’s a good practice to sign a data processing agreement with any third parties handling personal data on your behalf.

• While not mandatory, appointing a Data Protection Officer (DPO) can be beneficial. This expert helps ensure GDPR compliance, assesses risks, advises on impact assessments, and coordinates with regulators.

 

Privacy rights

• Businesses must make it simple for individuals to exercise their privacy rights. This involves providing transparency, ensuring smooth processing of deletion requests, and supporting the seamless application of all other rights.

 

 Rights under the GDPR 

Chapter 3 of the GDPR outlines various rights granted to data subjects to safeguard their personal information:

Right to be informed

Data subjects have the right to know how their personal data is collected and used, whether provided directly or obtained from another source.

Right to access

Individuals can reach out to organizations to request access to their personal data and obtain copies.

Right to rectification

In case of inaccurate or incomplete personal data, individuals can ask for corrections.

Right to restrict processing

Under certain circumstances, data subjects can request the restriction of the processing of their personal data.

Right to erasure (right to be forgotten)

Data subjects can request the deletion of their personal data under specific conditions, such as when it's no longer needed for its original purpose or if they withdraw consent.

Right to data portability

Individuals have the right to request their personal data in a format that is structured and easy to read, allowing them to transfer it seamlessly to another controller without any barriers.

Right to object

Data subjects can object to the processing of their personal data, and the data controller must stop unless they provide a valid justification to continue.

Rights related to automated decision-making and profiling

Data subjects have the right to understand and challenge decisions made about them by automated systems, especially when those decisions significantly affect their lives.

 

 Fines and penalties for noncompliance     

Ignoring data protection requirements can hit your organization hard. Here’s what’s at stake:

• Minor breaches: You'll face fines of up to €10 million or 2% of global annual turnover (whichever is higher) for issues like poor data processing records or incomplete impact assessments.

• Major Breaches: For serious violations—like infringing on data subjects' rights or unlawful processing—you could be fined up to €20 million or 4% of global annual turnover (whichever is higher).

But it’s not just about the money. Non-compliance can lead to severe reputational damage and legal actions from individuals or regulators. Protect your data—and your organization’s future!

 

 GDPR data breach notifications     

When a data breach occurs, swift action is crucial under the GDPR. Here’s what organizations need to do:

• Notify the supervisory authority: Upon discovering a breach that may jeopardize individuals' rights, you must inform the supervisory authority within 72 hours. Include details about the breach, its impact, and the steps you've taken to address it.

• Inform affected individuals: In the case of a high-risk breach, it’s essential to inform data subjects without delay. Your message should explain the nature of the breach, potential consequences, and the measures you’re taking to mitigate the impact.

 

 

 6 steps to ensure GDPR compliance     

Wondering what GDPR compliance is and how you can maintain a GDPR checklist? Check out these six crucial steps to keep your data practices in line for GDPR compliance:

1. Conduct a data audit: Identify what personal data you collect, how it's used, and who has access to it.

2. Update privacy policies: Make sure your privacy policies are clear and current, outlining how you collect, use, and protect personal data.

3. Implement data protection measures: Use technical and organizational safeguards, like encryption and access controls, to protect personal data.

4. Train your team: Educate employees on GDPR requirements and their roles in compliance. Consistent training empowers your team with the knowledge they need, cultivating a culture of awareness and significantly lowering risks.

5. Establish procedures for data subject rights: Create processes to handle requests related to rights like access, rectification, erasure, and data portability.

6. Monitor and review: Regularly audit your data protection practices and stay updated on GDPR changes to ensure continuous compliance.

 

 GDPR compliance myths 

1. Myth: The GDPR is just for businesses located in the EU.
   Fact: In truth, the GDPR affects any organization that handles personal data belonging to EU residents, no matter where that organization is headquartered.

2. Myth: The GDPR is only about consent.
   Fact: While consent is important, the GDPR encompasses various principles, including data protection by design, data minimization, and the rights of individuals regarding their data.

3. Myth: All personal data must be deleted upon request.
   Fact: Organizations must comply with deletion requests unless they have a legitimate reason to retain the data, such as legal obligations.

4. Myth: Achieving GDPR compliance is a one-time task.
   Fact: Compliance is an ongoing process that requires regular reviews and updates to policies, procedures, and security measures.

5. Myth: The GDPR is only relevant for big corporations.
   Fact: The GDPR applies to all organizations, regardless of size, as long as they process personal data of individuals in the EU.

 

 FAQ 

What is the main focus of the GDPR?  

The GDPR focuses on protecting your personal information and enhancing your control over privacy matters.

What is data protection under the GDPR?

It’s a set of rules designed to oversee how personal information from individuals in the EU is collected, processed, and stored. The goal is to empower people by giving them more control over their data. Organizations must handle this information openly and securely, and if they don’t play by the rules, they could face hefty fines.

 

What is a data processor according to the GDPR?

As per the GDPR, a data processor is someone who processes personal data for a data controller. They follow the controller's instructions and must ensure the data is handled securely, but they don't own the data themselves.

What is personal data under the GDPR?  

It’s any information that can help identify someone, whether directly or indirectly. This covers a range of details like names, email addresses, IP addresses, and even things like cookies used online.

How do companies become compliant under the general data protection regulation?  

To comply with the GDPR, companies must obtain clear consent before collecting personal data, implement strong security measures to protect it, and ensure all processing is lawful and transparent. They must also provide individuals with rights to access, correct, or delete their data and notify authorities and affected individuals in case of a data breach.

Who must comply with the GDPR?  

Any organization that processes the personal data of individuals within the European Union must comply with the GDPR, regardless of where the company is based. This applies to businesses, nonprofits, and government entities that handle EU citizens' data.

Who is covered under the GDPR?  

The GDPR applies to anyone whose personal data is processed by an organization, no matter their nationality or where they live. This encompasses EU citizens and residents as well as any individual present in the EU when their data is being processed.

When did the GDPR come into effect?  

The GDPR came into effect on May 25, 2018.