What Is Data Protection and How Does It Affect Your Company?
Data protection is a growing concern for businesses. The more data you store on your servers, the more obligations you have to protect individuals. Personal data includes customers, employees, suppliers, prospects, and any other organizations you deal with.
In recent years, data protection laws have made marketing strategies for businesses more complicated. The introduction of Europe’s General Data Protection Regulations (GDPR) means that businesses of all sizes are obligated to protect consumer data.
Although GDPR was passed by European courts to protect residents of EU countries, the regulations are far-reaching. Businesses all over the world are potentially affected. If a European citizen provides you with personal details, you are bound by data protection regulations.
Any form of marketing that involves collecting personal data such as names, addresses, emails, or phone numbers is subject to GDPR. Understanding how data protection laws impact your business is critical, as failing to do so can result in hefty fines.
Permissions and Privacy Policies
Data Controller Versus Data Processor
For the most part, GDPR obligations are easily resolved. However, difficulties arise when businesses share data with third parties. Under such circumstances, it is important to understand the difference between a data controller and a data processor.
Data controllers are responsible for protecting the privacy and rights of individuals. Any personal data must be appropriately secured from cybercriminals. There are occasions when the data controller (your business) releases control of data to a third-party service (service provider, partner, payment gateway, Google Analytics).
In such circumstances, the data processor is only responsible for processing the data. Because they do not own data, third parties are not legally responsible for the handling and security of the data.
It is the responsibility of the data controller to implement appropriate technical and organizational measures. Moreover, in the event of a breach, you must notify regulators within 72 hours.
Failure to install appropriate security protocols will result in a fine should your system be breached. Fines are typically 4% of your global annual turnover or 20 million euros, whichever is higher.
The principles of data protection laws help businesses ensure the personal details of their staff, clients, and customers are properly protected.
Ensuring data protection policies are met is crucial, as the effects of non-compliance can be devastating for businesses and their owners. If you are unsure whether your company has installed the appropriate data security measures, it is advisable to consult legal advisors with expertise in data protection legislation.