What is General Data Protection Regulation (GDPR)?

The General Data Protection Regulation (GDPR) is a law made by the European Union (EU) that governs how personally identifiable information is collected, processed, and eventually deleted from a computer system. 

The GDPR requires the controller and the processor to designate a DPO to oversee data security strategy and GDPR compliance. It is a regulation that requires businesses to protect their personal data. Personal data is defined broadly in GDPR:

• Basic identity information like name, address, and ID numbers.
• Health and genetic data.
• Biometric data.
• Racial data.
• Political opinions.

Technologies such as blockchain present challenges under GDPR. For example, blockchain networks like those based on Hyperledger Fabric create immutable, permanent, and distributed records. These characteristics conflict with GDPR requirements such as the right to be forgotten, which mandates the ability to delete personal data.

Therefore, it's important to carefully assess who has access to personal data and how it is stored, particularly when using technologies that do not allow modification or deletion.

Features of GDPR

The GDPR was brought in to safeguard the sensitive data and to ensure this several rules under it were formed that must be followed by all organizations, Below are the features of GDPR:

• Fines of up to 4% of turnover: Organizations in breach of GDPR can be fined up to 4% of annual global turnover or €20 Million.
• Increased territorial scope: Applies to any company processing personal data of EU citizens regardless of location.
• Consent matters: Explicit consent must be provided in an intelligible and easily accessible form.
• Right to access and portability: Users can inquire whether and how their personal data is being processed.
• Breach notification within 72 hours: Breaches must be reported within 72 hours of becoming aware of them.
  Designing for privacy: Data protection should be built in from the start of system design, rather than as an afterthought.
• The right not to be forgotten: Allows the data subject to request that the data controller deletes his or her personal information (and potentially third parties, too).
• Officers in charge of data protection: Appointed in certain cases to help the company demonstrate GDPR compliance.

History Of GDPR

The need of creating a law to regulate the protection of data came into existence long time back that laid the foundation of GDPR. Thus, GDPR was effective from 2018, the process has been undergoing way before that. Here's he timeline of GDPR evolution:

On January 28, 1981

The convention regarding the safeguarding of individuals about automatic personal data processing was signed as Council of Europe Convention 108 on 28 January 1981, and it entered into force on 1 October 1985. Except for Turkey, all 47 members of the Council of Europe have approved the treaty.

On December 1, 2009

the Article 29 Working Party (WP29) and the Working Party on Police and Justice (WPPJ) issued the "Future of Privacy" paper in response to the European Commission's invitation for input on the emerging challenges for personal data protection. Despite new technology and globalization, the basic principles of data protection are still regarded as legitimate. However, the report emphasizes that the degree of data protection in the EU might gain with improved implementation of existing data protection principles and modernization of the legislative framework.

On October 5, 2012

Article 29 Data Protection Working Party issued Opinion 08/2012 as additional input to the data protection reform discussion (WP199), which especially addresses the definition of personal data, the concept of consent, and the proposed delegated acts.

On January 28, 2014

On European Data Protection Day, EU Vice-President Viviane Reding asks for a new data protection compact to rebuild faith in the digital economy in general and transatlantic flows of personal data in particular. Given that some businesses and governments continue to view data protection as a barrier rather than a solution to the issues of the digital era, she calls for a shift far from the lowest common denominator and toward a high level of personal data protection.

On August 27, 2015

Politico reported that a broad industry coalition is lobbying the European Union to remove article 43a of the proposed GDPR, which might oblige companies to decline requests for personal data from non-member countries. Following Edward Snowden's spying revelations, the EU Parliament included the so-called "anti-FISA" section in the draught (the Council had not included the clause in its preferred text for the regulation).

On January 28, 2016

The 47 countries of the Council of Europe, as well as European organizations, agencies, and organizations, commemorated the 10th anniversary of the Council of Europe's Convention 108. A meeting co-hosted by the European Parliament and the European Data Protection Supervisor for EU officials on the EU data protection reform was among the events commemorating this milestone.

May 15, 2018

The GDPR was effective and it replaced the EU Data Protection Directive of 1995.

Why Does GDPR Exist?

GDPR was born out of privacy concerns. Europe has long had stricter restrictions governing how firms utilize their citizens' data. Here are the following major causes why GDPR came into existence:

• The GDPR supersedes the EU's Data Protection Directive, which became law in 1995. This was long before the internet evolved into the online business powerhouse that it is today. 
• As a result, the directive is out of date and does not address many of the current methods for storing, collecting, and transferring data.
• The public's anxiety about privacy is substantial, and it intensifies with each high-profile data leak. 
• According to the RSA Data Privacy & Security Report, which polled 7,500 customers in France, Germany, Italy, the United Kingdom, and the United States, 80% of respondents stated that stolen banking and financial data is a top concern. 
• 76% of respondents expressed concern about lost security information (e.g., passwords) and identification information (e.g., passports or driving licenses).

What Type of Data does GDPR Protect?

Users must provide their permission to any corporation or organization that wants to acquire and utilize their personal information. Personal data, as defined under the GDPR, is information relating to "an identified or identifiable natural person" – referred to as a "data subject."

• Identity information like user name, email address, etc. 
• Any information about "that natural person's physical, physiological, genetic, mental, economic, cultural, or social identity"
• Biometric data is obtained by a technical procedure, such as facial imaging or fingerprinting.
• Health-related or healthcare-related information.
• An individual's racial or ethnic information Political viewpoints or religious beliefs.

Seven Principles of GDPR

The GDPR establishes seven fundamental principles upon which it bases its data regulations and compliance rules:

1. Legality, fairness, and transparency

Organizations must have documented the lawful and legal purpose for processing the personal data and the data subject must be fully informed about how their information will be used.

2. Limitation of purpose

Organizations can only collect personal data for a specific purpose and the purpose must be well documented and ensure that the information is deleted when the purpose is fulfilled.

3. Data Minimization

The data collected should be adequate, relevant, and specific to the purpose for which it is necessary. 

4. Accuracy

Data collection organizations must ensure the accuracy of their data and update it as needed. When a data subject makes such a request, the data must be deleted or changed

5. Storage Limitation

Storage space is limited. Data collected will not be kept for any longer than necessary. Every data collected has an expiration date, after which the organization loses the right to store the data. 

6. Integrity and Confidentiality

Personal data must be safeguarded with appropriate safeguards to ensure its security and protection against theft or unauthorized use.

7. Accountability:

Data collectors are responsible for ensuring GDPR compliance.

Which Organizations Does the GDPR Affect?

The General Data Protection Regulation (GDPR) applies to a wide range of organizations, regardless of their geographical location, if they handle the personal data of individuals within the European Union (EU). Specifically, GDPR affects:

Companies that Sell to Customers in the EU

This includes businesses that offer goods or services to individuals in the EU.

Note: General marketing efforts (e.g., a Google ad that incidentally reaches EU users) may not fall under GDPR, but targeted marketing (e.g., Facebook ads aimed specifically at EU users) does.

Companies with an Existing EU Customer Base

Any business that currently serves or maintains data on EU-based customers is subject to GDPR obligations.

Examples of Affected Organizations

• Cloud service providers
• Insurance companies
• Telecommunications firms
• Online gaming platforms
• Any organization processing personal data of EU citizens for business or operational purposes

Role of Compliance Officers in Organizations

Compliance officers are typically employed by large corporations to ensure that the company adheres to applicable laws, regulations, and internal policies. They often report to managers responsible for specific business units, such as:

• Customs compliance in the Purchasing Department for importing firms
• Workplace compliance in the Human Resources Department

Each department usually operates under a defined chain of command, which may include senior executives such as the Chief Financial Officer (CFO) or Chief Operating Officer (COO).

However, in a well-structured organization, a compliance officer, or even a line employee who observes a compliance issue should have the ability to report concerns directly to the General Counsel (GC) or Chief Legal Officer (CLO). This is important because the CLO can assess both the employee’s and the company's legal exposure while maintaining attorney-client privilege.

As a result, communications between the employee and the legal department are protected from legal disclosure under most circumstances.

GDPR Compliance in Third-Party and Customer Data Handling

According to the SiriusDecisions 2017 Data Privacy Compliance Core Report, the GDPR mandates that enterprises obtain “clear, affirmative action voluntarily given, specific, informed, and unambiguous authorization” from individuals before processing their personal data.

Additionally, organizations are required to maintain thorough documentation that includes:

• The types of personal information collected and processed
• The location where this data is stored
• The purpose for which the data is processed
• Records of consent obtained from individuals
• Documented procedures for data protection and security

These requirements apply not only to internal data collection methods such as website forms and landing pages, but also to third-party lead providers used for paid campaigns.

As a result, B2B marketing teams must ensure that all external partners including media agencies, publishers, and lead vendors follow strictly to GDPR standards when collecting and processing data on their behalf.

Failure to comply with these regulations can lead to significant penalties, reinforcing the importance of transparent, well-documented, and legally sound data practices such as:

Breach Notifications

The GDPR Act requires organizations to notify a Data Protection Authority of any security breach that affects personal data (DPA). Article 33 of the law requires organizations to inform the Data Protection Authority of a breach within 72 hours of finding out about it. However, it is possible to extend the time by requesting to inform DPA in stages. 
Non-compliance can result in penalties, which aren't meant to punish organizations but to make sure that they have improved ability to cope with security flaws.

Fines and penalties for non-compliance

While not all GDPR violations will result in substantial fines, the following are some of the administrative fines that can be imposed on corporations. Typically, two tiers of fines are assessed, based on the many GDPR criteria outlined in the legislation, and they are as follows:

• The initial amount is up to €10 million, or 2% of the preceding fiscal year's global annual turnover, whichever is greater.
• The latter is up to €20 million, or 4% of the preceding fiscal year's global annual turnover, whichever is greater.

There is also a range of other actions that can be taken:

• Issuing warnings and reprimands to businesses and corporations, when appropriate.
• Imposing a temporary or permanent prohibition on data processing by any suspect firm or company.
• Data rectification, restriction, or erasure orders.
• Suspending data transfers to third nations that are not by legislation.

Six Steps to Ensure GDPR Compliance

Any organization must follow the following steps to ensure that it's complying with the GDPR law, or it might be subjected to legal actions against itself:

1. Understand the GDPR law

The first step in ensuring compliance is to understand the legislation in place, as well as the consequences of failing to meet the required standards, by conducting a GDPR compliance audit. Understand your GDPR obligations in terms of data collection, processing, and storage, including the legislation's numerous special categories.

2. Examine Other Organizations

GDPR affects businesses all over the world, not just those in the European Union. If anyone in the organization still doesn't understand the steps required to achieve compliance, it is advisable to contact those who have reached GDPR Compliance. Many businesses will most likely share the steps they took to achieve compliance.

3. Classify Data, Mark Regulated Data

Businesses must first identify any Personal Identifiable Information (PII) of EU citizens (information that can directly or indirectly identify someone). It is critical to determine where it is stored, who has access to it, with whom it is shared, and so on.
First, determine whether the data falls into a GDPR special category. Then, categorize who has access to which types of data, who communicates the data, and which applications operate that data.

4. Pay Particular Attention to Company Website

Cookies, opt-ins, data storage, and other features can be easily configured on a website. Their GDPR compliance is a completely different story. While many tools used to collect and store contact data have compliance features, it is your responsibility to ensure compliance. Simply modifying forms and obtaining consent for cookies should solve 80% of the problems.

5. Pay Particular Attention to Your Data

If your organization has a presence (either digitally or physically) in the EU, all data in your organization must comply with GDPR. Plan out how data enters, stored, transferred, and deleted. Knowing every possible path that personal information can take is essential for avoiding breaches and providing effective data loss reporting.

6. Revise and Audit

The final step is to review the results of the previous steps and correct any potential flaws, amending and updating as needed. Only the personal information required to provide the service or product is collected. Furthermore, the data should not be shared for unrelated purposes.

Conclusion

The General Data Protection Regulation (GDPR) marks a transformative shift in how organizations handle personal data, emphasizing transparency, accountability, and individual rights. Designed to address the evolving challenges of the digital age, GDPR enforces strict guidelines on data collection, processing, and storage, while holding organizations accountable through significant penalties for non-compliance. Its broad scope not only impacts businesses within the EU but also any organization that handles data of EU citizens globally. As technologies like blockchain introduce complexities in data permanence and access, GDPR reinforces the critical importance of privacy-by-design. Ultimately, GDPR serves as a global benchmark for data protection, encouraging organizations to prioritize ethical data practices, reinforce trust with consumers, and adapt proactively to an increasingly data-driven world.