General Data Protection Regulation (GDPR)

Definition

The General Data Protection Regulation (GDPR) is a comprehensive data protection law in the European Union that was enacted in May 2018 to enhance individuals' control over their personal data. It establishes strict guidelines for the collection, processing, and storage of personal information, ensuring that individuals have rights over their data and that organizations comply with transparency and accountability requirements.

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 process personal data of EU residents.
2. Under GDPR, individuals have several rights including the right to access their data, the right to rectify incorrect data, and the right to erasure or 'the right to be forgotten.'
3. Organizations must obtain explicit consent from individuals before processing their personal data and must inform them about how their data will be used.
4. Non-compliance with GDPR can result in severe penalties, including fines up to €20 million or 4% of the company's global annual revenue, whichever is higher.
5. GDPR emphasizes the importance of data protection by design and by default, meaning that privacy measures should be integrated into the development of business processes.

Review Questions

• How does GDPR empower individuals regarding their personal data?
  • GDPR empowers individuals by granting them several rights concerning their personal data. These include the right to access their data, allowing them to see what information is held about them; the right to rectify inaccuracies in their data; and the right to erasure, also known as 'the right to be forgotten,' which allows individuals to request that their personal data be deleted. This regulation ensures that individuals have greater control over how their personal information is collected and used by organizations.
• What are the key obligations that organizations must adhere to under GDPR?
  • Under GDPR, organizations must adhere to several key obligations including obtaining explicit consent from individuals before collecting or processing their personal data. They are required to provide clear information about how personal data will be used and ensure that data is processed securely. Organizations must also implement data protection measures by design and by default. Furthermore, they are obligated to report any data breaches to authorities and affected individuals promptly.
• Evaluate the implications of GDPR for businesses operating in a global marketplace.
  • GDPR has significant implications for businesses operating in a global marketplace as it sets a high standard for data protection that affects how companies handle personal information. Organizations outside the EU that process the data of EU residents must comply with GDPR regulations, which can lead to increased operational costs due to the need for compliance measures. Additionally, GDPR fosters trust among consumers who are increasingly concerned about their privacy, thereby influencing business practices worldwide. Companies may need to adapt their strategies not only to comply with GDPR but also to enhance transparency and accountability in data handling.

Related terms

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

Data Processing: Any operation or set of operations performed on personal data, including collection, storage, alteration, and deletion.

Consent: A clear affirmative action indicating an individual’s agreement to the processing of their personal data for specific purposes.