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Top 3 Ways GDPR Will Impact Your Business

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Beginning in May of 2018, the EU (European Union) will begin to enforce the toughest regulations on how the personal data of EU citizens is collected and stored by companies.

These regulations are a result of the General Data Protection Regulation (GDPR) law that was passed earlier this year. These regulations include redefining the term ‘personal data,’ restricting the collection of data, setting strict new privacy protections, and imposing high penalties for non-compliance to name a few things.

While the GDPR directly applies to all businesses and companies that work within the EU, any companies and organizations that offer products or services to citizens in the EU will be subject to the same rules as well.

So how does the GDPR directly affect your business or company? Let’s find out.

Here are the top three ways the General Data Protection Regulation will impact your business:

1 - You Must Obtain Customer Consent To Collect Data

The GDPR is explicit that you must obtain the consent of the customer in order to collect, handle, store, and protect their data.

Previously, businesses working in the EU or with customers in the EU didn’t have to directly obtain consent from the customer because the customer had the option to opt-out.

The GDPR has changed this due to the concern that certain people may have their personal data being collected by companies without realizing that. You now must obtain the consent from the user before collecting their data and furthermore keep a record of when you obtained the consent.

2 - You Must Hire A DPO (Data Protection Officer)

You must appoint a DPO so long as the core activity of your business is to either process sensitive personal data or that require a monitoring of data subjects.

Your DPO will need to be an expert on the laws regarding data protection and will report to the highest management level in your company and to any regulatory authorities. They will advise you on compliance with the GDPR and monitor your company to make sure you are in compliance with the laws.

3 - You Will Be Dealt Larger Fines For Non-Compliance

Finally, under the GDPR there are much larger fines for non-compliance. Should you have a data breach, you will need to report it to the Information Commissioner’s Office (ICO) in the United Kingdom within 72 hours. Failure to do will result in your business having to pay very hefty fines, which are divided into Tier 1 fines and Tier 2 fines.

GDPR And Your Business

In short, the GDPR will dramatically change the way you store and protect the data of your customers. Make sure you only store data of customers who are EU citizens with their consent, appoint a data protection officer if you fall under the categories mentioned above, and know that you’ll owe much larger fines for non-compliance are three ways the law impacts you directly.