General Data Protection Regulation (GDPR)

Definition

The General Data Protection Regulation (GDPR) is a comprehensive data protection law in the European Union that came into effect on May 25, 2018, designed to enhance individuals' control over their personal data. It mandates strict guidelines for the collection, storage, and processing of personal data, aiming to ensure privacy and data protection for all EU citizens and residents. GDPR establishes significant penalties for non-compliance, pushing organizations to prioritize data privacy and security.

5 Must Know Facts For Your Next Test

1. GDPR applies to all organizations operating within the EU, as well as those outside the EU that offer goods or services to EU citizens.
2. Individuals have the right to access their personal data, request corrections, and demand deletion under certain circumstances.
3. Organizations must obtain clear and explicit consent from individuals before processing their personal data.
4. Penalties for non-compliance with GDPR can reach up to €20 million or 4% of a company’s global annual revenue, whichever is higher.
5. GDPR also emphasizes the importance of data protection by design and by default, requiring organizations to implement measures that protect personal data throughout its lifecycle.

Review Questions

• What are the main principles of the General Data Protection Regulation (GDPR) that organizations must adhere to when handling personal data?
  • The main principles of GDPR include lawfulness, fairness, and transparency in processing personal data; purpose limitation, which means data should only be collected for specified purposes; data minimization, ensuring only necessary data is processed; accuracy; storage limitation; integrity and confidentiality; and accountability. Organizations must ensure they comply with these principles to protect individuals' rights while handling their personal information.
• How does the GDPR enhance individual rights regarding their personal data compared to previous regulations?
  • The GDPR significantly enhances individual rights by granting greater control over personal data. Individuals can request access to their data, have the right to rectify inaccuracies, demand deletion of their information under specific conditions, and restrict processing. Additionally, GDPR introduces the right to data portability, allowing individuals to transfer their data between service providers easily. These rights empower individuals and encourage organizations to prioritize transparency and accountability in data management.
• Evaluate the impact of GDPR on global business practices and its implications for companies operating internationally.
  • GDPR has transformed global business practices by setting a new standard for data protection that extends beyond European borders. Companies worldwide must adapt their operations to comply with GDPR when dealing with EU citizens' data, leading to increased costs associated with implementing privacy policies and training staff. This regulation has prompted discussions around international privacy standards and influenced other regions to develop similar frameworks. As a result, businesses are now more accountable for their handling of personal data, fostering a culture of privacy that reflects growing consumer demand for transparency and security.

Related terms

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

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

Data Breach: A security incident that results in unauthorized access to or disclosure of personal data, which may lead to risks for individuals' rights and freedoms.