GDPR

Definition

GDPR stands for General Data Protection Regulation, which is a comprehensive data privacy regulation in the European Union that aims to protect individuals' personal data and privacy. It emphasizes the importance of consent, data transparency, and individuals' rights over their own data, impacting how organizations collect, store, and process personal information. GDPR establishes strict guidelines that organizations must follow, affecting business operations globally, especially those dealing with EU residents.

5 Must Know Facts For Your Next Test

1. GDPR came into effect on May 25, 2018, and applies to all organizations operating within the EU or handling the personal data of EU citizens.
2. Under GDPR, individuals have enhanced rights, such as the right to access their data, the right to rectification, the right to erasure (also known as the right to be forgotten), and the right to data portability.
3. Organizations can face substantial fines for non-compliance with GDPR, reaching up to €20 million or 4% of their annual global turnover, whichever is higher.
4. GDPR requires organizations to implement 'privacy by design' and 'privacy by default' principles in their data handling practices.
5. Data breaches must be reported to authorities within 72 hours under GDPR if they pose a risk to the rights and freedoms of individuals.

Review Questions

• How does GDPR impact the way organizations collect and process personal data?
  • GDPR significantly changes how organizations handle personal data by mandating strict guidelines around consent, transparency, and individual rights. Organizations must obtain clear consent from individuals before collecting their data and ensure that they inform them about how their data will be used. Additionally, companies need to implement measures that allow individuals to exercise their rights over their data, such as accessing it or requesting its deletion.
• Evaluate the implications of GDPR on global businesses that interact with EU citizens.
  • GDPR imposes serious compliance requirements on global businesses that handle personal data of EU citizens, even if those companies are not based in Europe. This means that organizations must adapt their data protection practices and policies to align with GDPR standards to avoid hefty fines. As a result, many businesses have enhanced their data security measures and reconsidered how they collect customer information to ensure compliance with the regulation.
• Discuss how GDPR aligns with ethical considerations in data collection and analytics practices.
  • GDPR promotes ethical considerations in data collection by emphasizing the importance of obtaining informed consent from individuals before processing their personal information. It requires transparency about how data is used and grants individuals rights over their own information. This regulatory framework encourages businesses to adopt responsible analytics practices that prioritize privacy and protect against bias or unfair treatment of individuals based on their personal data. By aligning with these ethical principles, organizations not only comply with legal requirements but also build trust with consumers.

Related terms

Personal Data: Any information that relates to an identified or identifiable individual, including names, email addresses, phone numbers, and IP addresses.

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

Consent: An individual's clear and informed agreement to allow their personal data to be processed for specific purposes.