GDPR is going to be soon implemented, and it’s all everyone is talking about. The General Data Protection Regulation (EU) regulates upon how companies protect EU citizens’ personal data by complying with the set of requirements. With its entry, there are new rules on data protection enabling the 28 European countries and citizens to get more control over their personal data.
This not just ensures security but also strengthens citizen’s fundamental rights in the digital world by transforming the rules for B2B and B2C peers in the Digital market.
What is GDPR?
The new GDPR is an EU law that establishes data protection and privacy for all individuals across Europe. It is an act of harmonizing data and implementing privacy laws within the European Union to empower all EU citizens’ data.
How did GDPR come about?
GDPR mainly aims at giving control of personal data back to the citizens and residents of EU. This comes from replacing the existing Directive 95/46/EC (Data Protection Directive) which was adopted in 1995 with GDPR’s additional new rules.
What will Change Under the new GDPR?
Compliance surely will cause concerns and new expectations will be set for the security team. The strict rules around protecting customer data along with customer details like individuals IP address, Cookie data as they do for address, name, email, contact number and social security number.
People here will have better control over their data. GDPR is designed to make sure that people’s information is protected no matter where it is stored, processed and sent, both inside and even outside of EU.
Some of the key changes include:
- Reinforcing individuals’ rights to access
- Monitoring data breaching
- Citizens can demand for “right to be forgotten.”
- Ensures stronger enforcement of the rules concerning to penalties, and consent
- Strengthens the European Union internal market
- Streamlining international transfers of personal data and
- Right to claim compensation
Also, businesses failing to comply with the rules that come under GDPR will be enforced to pay fines of up to EUR 20 million or the 4% of their total global revenue, whichever is higher.
To whom does GDPR apply?
The rules of consent remain the same for both B2B and B2C companies. A new privacy regulation affects all businesses who deal with customer information, irrespective of their business type. It applies to every company who store and process customer’s personal information about EU citizens within and also outside of EU regardless of the company location. The rule is compliant for both controllers and processors who are the legal persons, public authorities or agencies.
Here, a controller, for example, is a bank who collects the data of the client when they open an account and processor is another organization who store, digitize and catalog all the information produced on paper by the data bank. Both organizations are bound to handle customer’s personal data or information in a way to protect the impact assessment and risk mitigation plan.
When will it be implemented?
GDPR which replaces Data Protection Directive (Directive 95/46/EC) was adopted on 27 April 2016 and will be enforceable from 25 May 2018.
Why does the GDPR exist?
Data protection is a good example for Europe to extend its influence to other countries in the world. EU, in general, have had more stringent rules for companies using people’s personal data. The current concept of Data Protection Directive was well in effect from 1995, even before the World Wide Web became the online business hub as it is today. Which is comparatively different in many ways of how data is stored, collected and transferred today.
“GDPR will be the game changer, it will mean the greater visibility for mistakes. Non-compliance with GDPR will not be an option and businesses must start adapting their data protection compliance programs.”
GDPR contains a set of new protections for EU data subjects which threatens significant fines and penalties for companies that are non-compliant towards safeguarding customer’s data. To name a few new obligations like data anonymization, data subject consent, breach notification, and trans-border data transfers, GDPR requires companies to take a few major operational reforms.
What are the benefits for citizens?
European Parliament along with the council have come to an agreement on data protection reform, proposed by the commission, simply to strengthen citizen’s fundamental rights.
The reform here provides tools for having access and control of one’s own data. It will strengthen people’s rights and build trust.
Nine of ten Europeans have expressed concerns about data management companies or any other mobile app companies collecting data without their consent, while seven of them fear of how companies may use their personal data when disclosed.
Hence there are new rules that have been set up for the benefits of the citizens:
1. The right to erasure or the right to be forgotten:
When an individual no longer wants his/ her data to be shared or processed, this system allows him/her to request for the removal of personal data from a particular database or a record. Your consent will be valued, and the right can be exercised in a number of situations. It is about protecting the privacy of the individuals by not erasing the past data or restricting the freedom.
2. Data Portability:
The right to data portability will ensure easier access for individuals to transmit personal data between service providers, this will make data fluid. It helps them to use their data to make better decisions and manage lives better. For most businesses, this may seem to be a risk, but can be an opportunity for the ones who are compliant. This further allows greater efficiencies in processing data for more accurate and better verification of identity.
3. Data notification alerts:
It’s the duty of companies and organizations to notify individuals through any means by either communicating to them directly or by notifying the ‘national supervisory authority of data breaches’, when data is lost in any form so that users can take appropriate measures.
4. Opt-in:
Growing an email list can be harder with the implementation unless you use the right method by using GDPR compliance consent processes. It requires companies to follow some of the steps like a contract, legal obligation, vital interest, public task and legitimate interest.
5. The right to correct mistakes:
With the enforcement of the law comes a greater advantage, individuals here are entitled to rectify and correct information, if it’s inaccurate and incomplete.
Conclusion:
With privacy being the human right, GDPR in marketing is forcing a different dynamic. It has been enacted as a value to customers who demand more meaningful acknowledgment for their preference and data. With appropriate nuance, this new GDPR law can create tremendous results for better and stronger customer engagement that was earlier not possible.
Risks may be significant, but when used this as an opportunity, this can enormously benefit both individuals and businesses. The idea may seem to be absurd right now, but brands will undoubtedly prosper from the enforcement.