GDPR

Definition

The General Data Protection Regulation (GDPR) is a comprehensive privacy law enacted by the European Union in May 2018 that governs the collection, storage, and processing of personal data. It aims to enhance individuals' control over their personal information and to unify data protection regulations across Europe, impacting organizations globally that handle EU citizens' data.

5 Must Know Facts For Your Next Test

1. GDPR applies to any organization that processes personal data of EU citizens, regardless of where the organization is located.
2. Organizations must obtain explicit consent from individuals before collecting their personal data and must inform them about how their data will be used.
3. GDPR mandates that individuals have the right to request access to their personal data and can demand corrections or deletions when necessary.
4. Violations of GDPR can result in substantial fines, up to 4% of a company's global annual revenue or €20 million, whichever is higher.
5. The regulation emphasizes accountability and requires organizations to implement appropriate technical and organizational measures to protect personal data.

Review Questions

• How does GDPR empower individuals regarding their personal data?
  • GDPR empowers individuals by granting them various rights related to their personal data. These rights include the ability to access their data, request corrections or deletions, and obtain information on how their data is being processed. This enhances transparency and allows individuals greater control over their own information, ensuring they can manage how it is used by organizations.
• Discuss the implications of GDPR for organizations operating outside of the EU that handle EU citizens' data.
  • Organizations outside of the EU must comply with GDPR if they handle the personal data of EU citizens. This means they need to implement strict data protection policies, obtain clear consent from users, and be prepared to respond to requests related to individuals' rights. Failure to comply can lead to hefty fines, which emphasizes the importance of understanding GDPR for global business practices.
• Evaluate how GDPR influences ethical considerations in forecasting practices involving personal data.
  • GDPR significantly influences ethical considerations in forecasting practices by emphasizing the importance of transparency and consent when using personal data for predictive analytics. Organizations must ensure they have legitimate grounds for processing this data and must communicate clearly how it will be used in forecasts. This responsibility shapes not only compliance but also ethical approaches to handling personal information, promoting respect for individual privacy while utilizing data-driven insights for decision-making.

Related terms

Personal Data: Any information relating to an identified or identifiable natural person, including names, email addresses, and even online identifiers.

Data Processing: Any operation or set of operations performed on personal data, including collection, storage, use, and deletion.

Data Subject Rights: Rights granted to individuals under GDPR that include the right to access, rectify, erase, restrict processing, and data portability.