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. It aims to enhance individuals' control over their personal data and establishes strict guidelines for data collection, processing, and storage by organizations, ensuring transparency and accountability.

5 Must Know Facts For Your Next Test

1. GDPR applies to any organization operating within the EU, as well as those outside the EU that offer goods or services to EU residents.
2. Individuals have rights under GDPR, including the right to access their data, the right to rectification, and the right to erasure, also known as the 'right to be forgotten.'
3. Organizations must implement appropriate technical and organizational measures to protect personal data and ensure its confidentiality and integrity.
4. Failure to comply with GDPR can result in hefty fines of up to €20 million or 4% of a company's global annual revenue, whichever is higher.
5. GDPR mandates that organizations must appoint a Data Protection Officer (DPO) if their core activities involve regular monitoring of individuals or processing large amounts of sensitive data.

Review Questions

• How does GDPR empower individuals regarding their personal data?
  • GDPR empowers individuals by granting them various rights over their personal data. These rights include the ability to access their data, request corrections, and even demand deletion under certain circumstances. This regulation promotes transparency and accountability from organizations by requiring them to inform individuals about how their data is being used and to obtain consent before processing.
• Discuss the key obligations organizations have under GDPR concerning data protection.
  • Organizations under GDPR must adhere to several key obligations, including implementing adequate security measures to protect personal data and ensuring that they collect only the data necessary for specific purposes. They must also maintain records of processing activities and provide clear privacy notices to inform individuals about how their data will be used. Additionally, if a data breach occurs, they are required to notify relevant authorities and affected individuals within a specified timeframe.
• Evaluate the impact of GDPR on global data protection practices and corporate responsibility.
  • The impact of GDPR extends beyond the EU, influencing global data protection practices as companies worldwide adapt to meet its stringent requirements. As a benchmark for privacy standards, GDPR has prompted organizations outside the EU to rethink their data handling processes and enhance their commitment to protecting personal information. This shift has fostered a culture of corporate responsibility where businesses prioritize consumer privacy as a key component of their operational strategies, ultimately leading to more robust international data protection frameworks.

Related terms

Personal Data: Any information relating to an identified or identifiable individual, including names, email addresses, and identification numbers.

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

Consent: A clear affirmative act indicating agreement by a data subject for their personal data to be processed.