The GDPR is also known as the General Data Protection Regulation. It is a data protection law of the European Union, implemented in 2018. This regulation specifies how companies can collect, store, and process personal data. Organizations dealing with data concerning citizens of the European Union regardless of the location will have to be GDPR compliant. This makes it more transparent, secure, and gives individual rights. The companies are supposed to be under strict regulations or face strict penalties. Below is a more detailed breakdown of the key requirements of GDPR:
1. Legitimate Processing of Data
Businesses must process personal data in a lawful and fair manner. There must be a legal ground to collect and use data. There are six legal grounds as listed below:
Consent- The party gives their consent on the processing of data.
Contractual Necessity- A contract that necessitates data
Legal Obligation- Processing as a requirement according to a law.
Vital Interests- Any processing in order to safeguard other people's life.
Public Task- Processing is for public interest or official authority
Legitimate interests- The corporation has a justification for processing personal data unless its interest outweighs the rights of the individual.
2. Transparent Data Collection
Organizations should inform individuals of their data collection. They should publicly reveal
What data is collected?
Why is it being collected?
How will it be used?
Who will it be shared with?
How long will it be stored?
This information should not be confusing with no covered words.
3. Data Minimization
Companies should collect only the intended data for a particular purpose. Collecting unnecessary data breaks the GDPR.
Example: For a newsletter, if a website collects emails, it should not ask for phone numbers unless required.
4. Data Accuracy
Businesses need to maintain personal data up-to-date and accurate. If a wrong data is present, a person has a right to correct it.
Example: If a customer updates their address, the company must modify records to avoid sending mail to the wrong location.
5. Storage Limitation
Organizations cannot store personal data longer than necessary. They must:
Set retention periods for data storage.
Delete data when it is no longer needed.
Allow individuals to request data deletion.
Example: A recruitment company should delete applicant details after a job vacancy is filled unless legally required to keep them.
6. Data Security
Businesses should secure personal data from breach, leaks, or misuse. The security measures applied are as follows:
Encryption- transforming data into coded format.
Access Controls – controls who can access data
Regular Security Audits – checking the vulnerabilities
In case of a data breach, companies are supposed to notify the authorities within 72 hours.
7. Individual Rights Under GDPR
Individuals have the following rights over their data:
Right to Access – they can request a copy of their data.
Right to rectification – They can correct the data.
Right to erasure (or "Right to be forgotten") – They can seek the deletion of their data.
Right to restriction of processing – They may request a limitation on the processing of data.
Right to data portability – They can take out their data in another service.
Right to object – They may refuse the deployment of their data for direct marketing.
Businesses should offer users simple ways to exercise these rights.
8. Consent
For companies based on consent, they must:
Obtain explicit consent before collecting data.
Use clear and simple language.
Provide an opt-out option.
Example: A website cannot use pre-ticked checkboxes for consent. Users must actively agree.
9. Data Breach Notification
If there is a data breach that has exposed personal data, companies must:
Notify the Data Protection Authority or DPA, within 72 hours.
Notify affected individuals if their data is at risk.
Failure to report any breach can, therefore, come with very dire consequences.
10. Appointment of a Data Protection Officer (DPO)
Certain organizations must appoint a DPO, including:
Public authorities processing personal data.
Companies handling large-scale sensitive data (e.g., hospitals, banks).
Businesses monitoring individuals' behavior (e.g., online tracking).
The DPO ensures compliance and acts as a point of contact for GDPR issues.
11. International Data Transfers
If companies transfer personal data outside the EU, they must ensure:
The destination country has appropriate data protection laws.
They employ Standard Contractual Clauses (SCCs) for security.
They apply Binding Corporate Rules (BCRs) if transferring data within a company's branches across the world.
Example: A US-based company storing EU customer data on US servers must comply with GDPR transfer rules.
12. GDPR Compliance Measures
Companies should:
Conduct DPIA i.e., Data Protection Impact Assessments to identify risks.
Maintain records of data processing activities.
Train employees on data privacy best practices.
Use secure systems for data storage and processing.
Penalties for Non-Compliance
Companies that fail to meet GDPR requirements face heavy fines:
Up to €20 million (almost 2 billion rupees) or 4% of annual global revenue (whichever is higher).
Additional fines for minor violations or failure to comply with authorities.
Example: In 2021, Amazon was fined €746 million for breaching GDPR.
Summary
GDPR is one of the main laws that protect personal data of people and holds the companies accountable. It compels companies to collect, process, and store data responsibly. It gives control to people regarding their information and ensures that companies are properly processing, securing, and being transparent about it to avoid penalties. With the help of GDPR, businesses build trust, increase security concerning data, and have guaranteed rights when using it in the virtual world.
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GDPR Requirements: FAQs
Q1. What should companies do after a data breach?
There must be communication within 72 hours of notice. Also communicates with those persons affected, only if it meets the above guidelines.
Q2. What personal data does GDPR protect?
Names, email addresses, phone numbers, IP addresses, bank details, health records, and more.
Q3. What happens if a company violates GDPR?
Fines of up to €20 million (around 2 billion rupees) or 4% of annual revenue.
Q4. How does GDPR protect user rights?
It allows individuals to access, modify, delete, and control their personal data.
Q5. How long can companies keep personal data?
Only for a necessary period. The data, which is unnecessary, must be deleted.
Q6. What is a Data Protection Officer (DPO)?
A DPO ensures GDPR compliance and deals with data privacy issues.
