The General Data Protection Regulation (GDPR) is a comprehensive privacy regulation enacted by the European Union (EU) to safeguard the personal data and privacy rights of individuals. After its passage through the EU parliament in 2016, the regulation went into full effect on May 25, 2018. GDPR was established to address growing concerns about the misuse, mishandling, and lack of transparency regarding personal data processing.
Reason for the Privacy Regulation:
GDPR aims to enhance data protection and privacy for individuals within the EU/EEA. It addresses the need for a robust framework to regulate how organizations collect, use, store, and share personal data, ensuring individuals have more control over their data.
Applicability of the Regulation:
The regulation applies to:
Organizations established within the EU/EEA that process personal data.
Organizations outside the EU/EEA that offer goods or services to individuals in the EU/EEA or monitor their behavior, provided that their data processing activities relate to such offering or monitoring.
Key Provisions and Penalties:
Data Subject Rights: Grants individuals various rights, including the right to access, rectify, erase, restrict processing, data portability, and the right to be informed about data breaches.
Consent and Lawful Processing: Requires obtaining explicit consent for data processing activities. It mandates lawful, transparent, and limited processing of personal data.
Data Protection Officer (DPO): Certain organizations must appoint a Data Protection Officer responsible for overseeing GDPR compliance.
Accountability and Compliance: Organizations are required to maintain detailed records of processing activities, perform data protection impact assessments for high-risk processing, and ensure compliance with GDPR principles.
Data Security and Breach Notification: Organizations must implement stringent security measures to protect personal data and promptly report data breaches to supervisory authorities within 72 hours of becoming aware of the breach.
Responsibilities of Data Processors:
Data Processors, who handle personal data on behalf of Data Controllers, are obliged to adhere to strict guidelines. They must ensure appropriate security measures, process data as per the Data Controller’s instructions, and assist in GDPR compliance.
Impact on Data Processing and Retention:
GDPR enforces stricter rules on data processing, necessitating lawful and transparent processing practices. It requires organizations to minimize data collection and retention to what is necessary for the intended purpose. Additionally, individuals have the right to request erasure or correction of their data.
Impact on Online Commerce:
GDPR has significantly influenced online commerce globally. Companies operating online, regardless of their location, must comply with GDPR when handling the personal data of individuals within the EU/EEA. This has led to improved data protection practices, clearer consent mechanisms, increased transparency, and more responsible handling of personal data in online transactions. Compliance with GDPR has become a fundamental aspect of conducting online commerce, promoting trust and accountability between businesses and consumers.
The content above is for informational purposes only. It is not intended to be a comprehensive guide on the regulation nor a legal advice. We strongly recommend that you consult a qualified attorney for GPDR related guidance. Full text of the GDPR regulation can be found here.