What Does GDPR Mean for Your Small Business?
By now you have probably been getting bombarded with information about what’s referred to as GDPR or General Data Protection Regulations. But what does GDPR mean for your small business?
In short, GDPR is a new set of rules designed to give citizens of the European Union more control over their personal data.
Organizations doing business in the EU are required to ensure personal data is gathered legally and under strict conditions. Those who collect and manage data will be forced to protect it from misuse and exploitation, as well as to respect the rights of data owners – or face penalties.
What Are the New GDPR Regulations?
The new General Data Protection Regulation (GDPR) is a comprehensive European privacy law that governs the collection, processing, storage, and sharing of personal data of individuals within the European Union (EU). GDPR compliance is used to refer to an organization’s adherence to the new rules and regulations set forth by this law.
The GDPR law was introduced on May 25, 2018, replacing the previous 1995 Data Protection Directive. It was created to modernize and strengthen data protection laws within the EU, reflecting the evolving landscape of data usage, privacy concerns, and increased global connectivity. The regulation provides a unified framework for protecting personal data across all member states of the EU and also applies to any organization outside the EU that processes the personal data of EU citizens.
Under the new GDPR laws, personal data is defined as any information relating to an identified or identifiable natural person, including their name, address, email address, phone number, IP address, and any other personal information that could be used to identify an individual. The regulation places greater emphasis on individual rights, such as the right to access, rectify, and erase personal data, as well as the right to object to the processing of personal data.
The GDPR imposes several obligations on organizations that collect, process, or store personal info, which includes obtaining explicit consent from individuals before collecting their information, providing clear and concise privacy notices, appointing a Data Protection Officer (DPO), and conducting data protection impact assessments. Additionally, all organizations must ensure that personal info is securely stored and processed, and that appropriate measures are taken to prevent any breaches.
Non-compliance with the new GDPR law can result in severe penalties, including fines of up to €20 million or 4% of a company’s global annual revenue, whichever is higher. These fines are intended to serve as a deterrent and encourage organizations to prioritize data protection and privacy.
History of the GDPR Law
The history of GDPR can be traced back to the Data Protection Directive of 1995, which was the first EU-wide legislation to regulate the processing of personal data. The directive aimed to harmonize data protection laws across the EU and ensure that the fundamental privacy rights of individuals were protected. However, the directive is now considered outdated and inadequate to address the challenges posed by the modern digital age.
The GDPR was introduced in 2016, after roughly four years of negotiations, to address the shortcomings of its predecessor and create a more comprehensive and robust data protection framework. The regulation officially went into effect in May 2018, and since then, it has become the gold standard for data protection and privacy laws around the world.
In addition to the GDPR, the EU has also introduced other regulations and resolutions that complement and reinforce the principles of data protection. These include the ePrivacy Directive, the Network and Information Security Directive, and the Payment Services Directive.
GDPR compliance is not just a legal requirement but also a competitive advantage for organizations that prioritize data protection and privacy. By complying with GDPR, organizations can use their websites to demonstrate their commitment to protecting personal data, which can help build trust and loyalty among their target demographic, partners, and employees. As most business owners know, building website credibility and trust is crucial to improve business performance.
Additionally, GDPR compliance can help a business avoid costly data breaches and reputational damage, which can have long-lasting consequences, or even bankrupt your business.
GDPR compliance is essential for any business that collects, processes, or stores the personal data of individuals within the EU. It is a comprehensive and robust privacy law that reflects the changing landscape of data usage and privacy concerns in the digital age. By complying with GDPR, businesses can demonstrate their commitment to protecting personal data and build trust among their target audiences.
How Does GDPR Impact Small Businesses?
Before you spend time considering how these new legal regulations impact your small business, first ask yourself this simple question: Have you ever, or do you plan to do business within the European Union? If the answer is an emphatic no, you may wish to NOT expend any time, effort or money into becoming GDPR compliant.
If your business, is, or ever has been, active in the EU, GDPR compliance should be taken seriously. Ask yourself the following questions when considering GDPR compliance:
- Do you store customer data that you receive from your website?
- Do you use any of the information that you receive for direct marketing purposes?
- Do you transfer data to any other companies? Especially ones that are outside of the US?
At the very least, to become GDPR compliant, your online data collection points, such as your website, will need to include a GDPR compliant Privacy Policy. These policies should be written with the aid of an experienced attorney.
It would also be a great time for your business to consider your existing privacy policies as laws are constantly changing and being introduced across different states. If you have not taken the time to update your privacy policies, there are some very helpful recommended business and marketing software solutions that you could consider to help you.
At Idea Marketing Group we are NOT legal experts and we are NOT able to offer legal advice for your business regarding GDPR compliance.
Whom to contact about GDPR compliance
We are referring all GDPR compliance questions to Chicago Attorney Donata Kalnenaite, who has developed expertise in this field. You can reach her at (312) 391-4341 or via email at donata@agencyattorneys.com. We highly recommend Ms. Kalnenaite, as she has helped us with our own GDPR compliance efforts and is very affordable for small to medium-sized business owners.
