As businesses expand globally, understanding and complying with data protection regulations becomes crucial. The General Data Protection Regulation (GDPR) data privacy law, which has been in effect since 2018, sets the standard for data protection laws worldwide, with strict guidelines and significant penalties for non-compliance. This blog explores the key aspects of GDPR and how it affects businesses globally. For more in-depth insights on GDPR’s effect on your company’s growth overseas, download the full eBook, “How Will the GDPR Data Privacy Law Affect Your Business’s Global Expansion?”.
The GDPR is recognized as one of the world’s strictest data privacy regulations, affecting any business that processes the personal data of individuals within the EU and the UK, regardless of where the business is based. This means that even organizations outside the EU/UK, including companies based in the US, must comply with the law if they handle data from EU/UK residents.
The Core Principles of GDPR
GDPR is built around several core principles that ensure the protection of personal data. These include:
- Lawfulness, Fairness, and Transparency: Processing personal data in a lawful, fair, and transparent manner.
- Purpose Limitation: Collecting data for explicit and legitimate purposes.
- Data Minimization: Ensuring that only necessary data for the specified purposes is processed.
- Accuracy: Keeping personal data accurate and up-to-date.
- Storage Limitation: Retaining personal data only as long as necessary for the specified purposes.
- Integrity and Confidentiality: Securing personal data against unauthorized or unlawful processing and against accidental loss, destruction, or damage.
- Accountability: The data controller is responsible for demonstrating GDPR compliance.
The GDPR’s Technical and Organizational Measures (TOMs)
To comply with GDPR, businesses must implement appropriate Technical and Organizational Measures (TOMs). TOMS are measures designed to secure personal data and include policies, procedures, and technologies that protect data from breaches and unauthorized access. These measures are extremely important—the GDPR explicitly mentions TOMS more than 90 times.
Impact of GDPR on Businesses
Failure to comply with GDPR can lead to hefty fines up to €20 million or 4% of annual global turnover, whichever is greater. Beyond financial penalties, non-compliance can damage a company’s reputation and trust with customers. Therefore, integrating GDPR compliance into business strategies is not just a legal requirement but also a critical component of corporate responsibility.
Advantages of Outsourcing GDPR Compliance
GDPR has set a high standard for data protection, influencing other jurisdictions around the world to adopt similar regulations. For any company considering global expansion, understanding and implementing GDPR compliance will be essential to its success. Given the complexity and scope of GDPR, many businesses find it advantageous to outsource compliance to global expansion GDPR experts. Partnering with a trusted expert can help companies:
- Ensure expertise in GDPR compliance without the need for extensive in-house training.
- Stay updated on changes in data protection laws and regulations.
- Reduce the risk of non-compliance and associated penalties.
For a more in-depth look at how to successfully navigate the GDPR, download “How Will the GDPR Data Privacy Law Affect Your Business’s Global Expansion?” eBook, an 8-step guide to understanding GDPR and implementing effective compliance strategies.
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