GDPR

Definition

GDPR, or the General Data Protection Regulation, is a comprehensive data protection law enacted by the European Union in 2018, aimed at enhancing individuals' control over their personal data. It establishes clear guidelines for how businesses collect, store, and use personal information, emphasizing transparency, consent, and the right to access one's data. By setting high standards for data privacy, GDPR has had a significant impact on businesses worldwide, compelling them to reassess their data handling practices.

5 Must Know Facts For Your Next Test

1. GDPR applies not only to organizations within the EU but also to those outside the EU that process the personal data of EU residents.
2. Organizations must obtain explicit consent from individuals before collecting their personal data, and they are required to provide clear information on how the data will be used.
3. Individuals have several rights under GDPR, including the right to access their data, the right to request corrections, and the right to request deletion of their data.
4. Non-compliance with GDPR can result in substantial fines, reaching up to 4% of an organization's annual global revenue or €20 million, whichever is higher.
5. GDPR encourages organizations to implement privacy by design and by default, meaning that privacy considerations must be integrated into business processes from the outset.

Review Questions

• How does GDPR enhance individuals' control over their personal data compared to previous regulations?
  • GDPR significantly enhances individuals' control by granting them specific rights regarding their personal data. These rights include access to their data, correction requests, and the ability to request deletion. This level of control is more extensive than many previous regulations, which often lacked clear guidelines on individuals' rights. By emphasizing consent and transparency, GDPR empowers individuals to make informed decisions about how their personal information is used.
• What are some key requirements that organizations must follow to ensure compliance with GDPR?
  • Organizations must adhere to several key requirements under GDPR to maintain compliance. They need to obtain explicit consent from individuals before processing their personal data and provide transparent information regarding how that data will be used. Additionally, they must implement appropriate security measures to protect personal data and have procedures in place for reporting data breaches within 72 hours. Training employees on data protection practices is also crucial for ensuring compliance.
• Evaluate the broader implications of GDPR for global businesses operating outside the European Union.
  • The implications of GDPR for global businesses are substantial as it extends its reach beyond EU borders. Companies worldwide that process the personal data of EU residents must comply with GDPR regulations, leading them to reassess and often overhaul their data protection practices. This requirement promotes a more unified approach to privacy standards globally, encouraging companies in other regions to adopt similar regulations. As a result, businesses must invest in compliance measures and raise awareness of data privacy issues among their customers.

Related terms

Personal Data: Any information that relates to an identified or identifiable individual, including names, emails, and identification numbers.

Data Subject: An individual whose personal data is processed by a controller or processor under GDPR.

Data Breach: A security incident in which unauthorized access to or disclosure of personal data occurs, potentially violating GDPR regulations.