General Data Protection Regulation (GDPR)

Definition

The General Data Protection Regulation (GDPR) is a comprehensive data protection law enacted in the European Union in May 2018, aimed at enhancing individuals' control over their personal data and simplifying the regulatory environment for international business. It sets strict guidelines on the collection, processing, and storage of personal information, emphasizing the importance of privacy and security for individuals' data, which connects closely to issues of privacy and confidentiality as well as the principles of informed consent.

5 Must Know Facts For Your Next Test

1. GDPR applies to any organization that processes the personal data of EU citizens, regardless of where the organization is based.
2. Under GDPR, organizations must obtain clear and affirmative consent from individuals before collecting or processing their data.
3. GDPR provides individuals with rights such as the right to access their data, the right to have their data erased, and the right to data portability.
4. Organizations that violate GDPR can face hefty fines, amounting to up to 4% of their annual global turnover or €20 million, whichever is higher.
5. GDPR emphasizes accountability and requires organizations to implement appropriate technical and organizational measures to protect personal data.

Review Questions

• How does GDPR enhance individuals' control over their personal data and what implications does this have for privacy and confidentiality?
  • GDPR enhances individuals' control over their personal data by granting them specific rights such as the right to access, rectify, and erase their data. This shift means organizations must be transparent about how they handle personal information, leading to greater accountability in maintaining privacy and confidentiality. By requiring explicit consent before processing data, GDPR also empowers individuals to make informed choices regarding their personal information.
• Discuss the key components of informed consent under GDPR and how they relate to the protection of personal data.
  • Informed consent under GDPR requires that consent be given freely, specifically, and unambiguously through a clear affirmative action. This means organizations must clearly inform individuals about what their data will be used for and obtain explicit permission before any processing occurs. This ensures that individuals are fully aware of their rights and have a say in how their personal information is handled, thereby reinforcing the protection of personal data.
• Evaluate the impact of GDPR on global businesses operating outside the EU, particularly regarding compliance and enforcement challenges.
  • GDPR's reach extends beyond EU borders, requiring global businesses that handle the personal data of EU citizens to comply with its regulations. This has led many organizations outside the EU to reassess their data handling practices to avoid substantial fines. Compliance presents challenges such as navigating differing international laws and ensuring that data protection standards meet GDPR requirements. As a result, businesses are increasingly prioritizing privacy measures and enhancing their data governance frameworks to avoid legal pitfalls.

Related terms

Data Subject: An individual whose personal data is being collected, stored, or processed by an organization.

Consent: An explicit agreement from a data subject allowing an organization to process their personal data under specified conditions.

Personal Data: Any information relating to an identified or identifiable individual, which can include names, email addresses, location data, and more.