GDPR

Definition

The General Data Protection Regulation (GDPR) is a comprehensive data protection law enacted by the European Union in May 2018, designed to enhance individuals' control over their personal data and simplify regulations for international business. This regulation mandates that organizations ensure strict data handling and privacy practices, promoting transparency and accountability in how personal information is collected, processed, and stored.

5 Must Know Facts For Your Next Test

1. GDPR applies to all organizations operating within the EU and to those outside the EU that offer goods or services to individuals in the EU.
2. Under GDPR, individuals have the right to access their personal data, request corrections, and even demand deletion under certain circumstances.
3. Organizations must obtain explicit consent from individuals before processing their personal data and must provide clear information about how that data will be used.
4. Failure to comply with GDPR can result in substantial fines, with penalties reaching up to €20 million or 4% of the annual global turnover, 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 products and services from the outset.

Review Questions

• How does GDPR enhance individuals' control over their personal data compared to previous regulations?
  • GDPR significantly enhances individuals' control over their personal data by granting them specific rights such as access, rectification, erasure, and portability of their data. This means individuals can actively manage their personal information rather than simply accepting terms without understanding them. The requirement for explicit consent further empowers individuals, ensuring they are fully informed about how their data will be used.
• What are some of the key obligations that organizations must meet under GDPR regarding personal data processing?
  • Organizations under GDPR must meet several key obligations, including obtaining clear and explicit consent from individuals for data processing, ensuring transparency about data usage, implementing appropriate security measures to protect personal data, and maintaining records of processing activities. Additionally, they must notify authorities and affected individuals in the event of a data breach within 72 hours, which emphasizes accountability in handling personal information.
• Evaluate the potential impacts of GDPR on businesses operating internationally and how they might adjust their practices accordingly.
  • The implementation of GDPR has profound implications for businesses operating internationally. Companies need to evaluate their data handling practices to ensure compliance with GDPR's stringent requirements or risk hefty fines. This may lead businesses to invest in new technologies for better data management and security, revise their privacy policies, train employees on compliance measures, and even rethink how they collect and process customer information. Ultimately, businesses might adopt more robust global data protection standards to cater to both EU regulations and local laws in other regions.

Related terms

Personal Data: Any information relating to an identified or identifiable person, including names, email addresses, location data, and online identifiers.

Data Subject: An individual whose personal data is being processed by a data controller or processor.

Data Breach: An incident where unauthorized access to or disclosure of personal data occurs, potentially compromising the confidentiality and integrity of that data.