General Data Protection Regulation (GDPR)

Definition

The General Data Protection Regulation (GDPR) is a comprehensive data protection law enacted by the European Union to enhance individuals' control over their personal data and unify data privacy laws across Europe. It emphasizes the importance of consent, transparency, and accountability in how organizations handle personal information, impacting businesses globally that interact with EU residents.

5 Must Know Facts For Your Next Test

1. GDPR came into effect on May 25, 2018, replacing the Data Protection Directive 95/46/EC and imposing stricter guidelines on data handling.
2. Under GDPR, organizations must obtain clear consent from individuals before collecting their personal data and provide them with the right to withdraw that consent at any time.
3. GDPR establishes severe penalties for non-compliance, including fines of up to €20 million or 4% of a company's global annual revenue, whichever is higher.
4. Individuals have several rights under GDPR, including the right to access their data, the right to have it erased (the 'right to be forgotten'), and the right to data portability.
5. The regulation applies not only to organizations within the EU but also to those outside the EU if they process the personal data of EU residents.

Review Questions

• How does GDPR enhance individuals' control over their personal data compared to previous regulations?
  • GDPR enhances individuals' control by introducing stronger consent requirements and greater transparency in how personal data is handled. It mandates that organizations inform individuals about their data collection practices and gives them more rights, such as the right to access their information and request its deletion. This shift marks a significant improvement over previous regulations by empowering individuals and holding organizations accountable for their data practices.
• Evaluate the implications of GDPR penalties for organizations that fail to comply with its regulations.
  • The implications of GDPR penalties are substantial, as organizations can face fines up to €20 million or 4% of their global annual revenue. This creates a strong incentive for businesses to prioritize data protection and compliance efforts. The financial repercussions not only affect the organization directly but also influence public trust and brand reputation, making adherence to GDPR critical for maintaining customer relationships and market position.
• Critically analyze how GDPR impacts non-EU companies that process the personal data of EU residents.
  • GDPR has a significant impact on non-EU companies by extending its jurisdiction beyond European borders. These companies must comply with GDPR if they handle the personal data of EU residents, which necessitates adjusting their data protection policies and practices. This creates a more unified approach to data privacy globally, pushing many organizations worldwide to enhance their data protection measures and foster greater transparency in how they manage personal information.

Related terms

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

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

Data Processor: An entity that processes personal data on behalf of the data controller, typically a third party involved in managing or analyzing data.