When the European Union adopted the General Data Protection Regulation (GDPR) in 2018, it was heralded as the most stringent security and privacy law in the world. Even though the European Union passed it, the GDPR impacts any business that collects data or targets people based in the EU, regardless of their location. The impact of the GDPR has been felt around the world, and many other entities are following suit with their data protection policies. Those who fail to follow the guidelines put forth by the GDPR or other laws risk losing their customers’ trust and facing severe fines. Learn more about the GDPR and other regulations and find out what you face if you fail to comply.
What is the GDPR?
You probably know that the GDPR regulates how you collect and use data, but what does that mean? The law governs how businesses collect, store, process, and destroy personal data. Personal data is a broad term and includes everything from names and addresses to information about race and religion. Even IP addresses are part of personal data.
Businesses cannot collect data without getting explicit consent, and people have the right to withdraw consent at any time. If they withdraw consent, the business must erase all personal data. People also have the right to request their data. Then the company must send the data to them, and then they can transmit it to another controller.
Also, if a company has a data breach, it only has 72 hours to notify customers. Finally, some companies must have a data protection officer on staff.
Not following the GDPR comes with some hefty fines. If your company is found in breach, you could be forced to pay 20 million Euros or 4 percent of your annual global turnover. That could bankrupt your business, so you don’t want to ignore the law.
New Regulations Set Around the World
The GDPR sets the tone for how governments want businesses to collect, store, and manage data. Now, other entities have followed suit with their laws.
Canada passed the Personal Information Protection and Electronic Documents Act (PIPEDA) in 2000, but the country updated it shortly after the GDPR became law. The updates included mandatory notifications and records if there is a data breach. This was a response to the increase in data breaches around the world and made businesses more responsible for safeguarding data.
California also has a law on the books. It’s the California Consumer Privacy Act of 2018 (CCPA). This act allows consumers to see all the personal data a company has on them. People can also see the third parties the company has shared the data with, and if there are privacy violations, they can sue the company that has the data. Even though this is one of the strongest privacy laws in the country, many California residents want to increase the scope to provide additional protection.
Lawsuits are already piling up in California regarding the CCPA. Thus far, companies such as Salesforce, Hanna Andersson, and Ring are facing lawsuits. Additional lawsuits are expected to be filed soon. If consumers are successful, expect retailers to tighten up their data collection procedures quickly.
Are You Compliant?
Data is a driving force of internet marketing. However, you could hurt your company if you fail to comply with data regulations. Audit your data collection processes and make changes as needed. When you safeguard and protect data, you will keep your customers’ trust and avoid paying massive fines that could shut down your business. Those are both excellent reasons to comply with data and privacy regulations.
At Transformation Marketing, we pride ourselves on the trust that we have built with clients. One of the ways we proven to be trustworthy is by responsibly collecting and using personal data. Our data comes from a verified third party, and we comply with the regulations of collecting, storing, processing, and disposing of it properly. Interested in learning more? Give us a shout…we’d be happy to help!