GDPR Compliance Hub

GDPR overview

Knowing the basics of GDPR compliance makes it easier to get ready and checked, so you can follow the rules faster and without much worry. Here’s what you need to know:

Basics of GDPR

The General Data Protection Regulation (GDPR) is a law made by the European Union that sets data privacy and security rules. Although the EU made it, it applies to any organization that gets data from people in the EU. GDPR is famous for imposing hefty fines on those who break the rules, sometimes in the tens of millions of euros.

The history and purpose of GDPR

Even though GDPR is a recent law, it began way back in the 1950s. In 1950, the European Convention on Human Rights said everyone has a basic right to privacy. The EU saw the need for better protections as the internet became more important. In 1995, they made the European Data Protection Directive, which set some basic data privacy and security rules. Each EU country made its laws based on these rules. 

However, with the rapid evolution of digital technologies in the late 2000s and early 2010s, it became evident that a more comprehensive framework was needed to safeguard data and empower individuals with greater control over their personal information. Consequently, the EU embarked on the process of updating the 1995 directive to meet the demands of the digital age. Finally, the GDPR was made by the European Parliament in 2016, and it started on May 25, 2018.

How do you become GDPR compliant?

To comply with GDPR regulations, organizations are required to undertake specific measures when handling personal data:

1. Have a legal reason for using data: Organizations need a valid reason for collecting and using personal data, like following laws or contracts.

2. Get clear permission from people: Organizations must explain how they use data clearly, usually in a privacy notice.

3. Use security measures: Organizations must take safeguards to keep customer data safe, such as controlling who can access it and training staff about security and privacy.

4. Report breaches: If there’s a data breach, organizations have to tell the supervisory authority within 72 hours.

5. Appoint a data protection officer: Some organizations have to pick someone to look after their data protection strategy.

6. Respect people’s rights: Under GDPR, people have rights, like knowing what data is being used about them and being able to say no.

Getting GDPR compliant can be difficult because of all the legal stuff and the need to know what’s expected. So, it’s good to understand the steps before you start.

Next, we’ll go deeper into GDPR, how it affects your business and customers, who ensures it’s followed, and what happens if you don’t follow it.

What is GDPR compliance?

People increasingly use cloud services like email, messaging, and file-sharing for their private data. But more data breaches are happening, and they’re getting more complicated.

While many security rules are about protecting data from hackers, GDPR cares just as much about data privacy. It wants to keep data safe and give people more control over who uses their personal data and why.

GDPR is a prominent law that has had a significant impact. It has inspired other laws, such as the California Consumer Privacy Act (CCPA). With all this focus on data protection and privacy, organizations need to know about these rules to follow them and avoid hefty fines.

This article will explain the basics of GDPR, and how to follow it so you know what the law means for your business and customers.

What is GDPR & what does it stand for?

GDPR, which stands for the General Data Protection Regulation, is a comprehensive law established by the European Union (EU) to set data privacy and security rules within the European Economic Area. This includes all EU member states as well as Iceland, Liechtenstein, and Norway.

What is the purpose of GDPR?

The goal of GDPR is to protect the personal data and privacy of people in the EU.

Even though GDPR is a recent law, its beginnings go back to the 1950s. In 1950, the European Convention on Human Rights said everyone has a basic right to privacy.

The EU saw the need for better protections as the internet became more important. In 1995, they made the European Data Protection Directive, which set some basic data privacy and security rules. Each EU country made its laws based on these rules.

In the late 2000s and early 2010s, the EU realized they needed a bigger solution and started thinking about updating the 1995 directive.

Finally, the GDPR was made by the European Parliament in 2016, and it started on May 25, 2018.

Even though GDPR is EU law, it applies to any organization that uses the personal data of people in the EU, or offers goods or services to people in the EU.

Who does GDPR apply to?

Despite its origin within the EU, GDPR extends its jurisdiction to any organization that collects data from individuals within the EU. Non-compliance with GDPR can result in substantial fines, often reaching the tens of millions of euros. It’s important to know if your business must follow GDPR to avoid breaking the rules and getting fined.

GDPR applies to:

1. Organizations in the EU: If your organization is in the EU or has a branch or part of it in the EU, you need to follow GDPR, no matter where you store or use the data.

2. Organizations outside the EU that offer goods/services to people in the EU: It doesn’t matter if the organization is outside the EU or if the goods/services are free. What matters is if the organization serves EU customers. For example, if a US company tutors people in France, it has to follow GDPR.

3. Organizations outside the EU that track the online behavior of people in the EU: It doesn’t matter if the organization is outside the EU. If it tracks cookies or IP addresses of people in EU countries who visit its website, it has to follow GDPR.

Does GDPR apply to US companies?

Even if a company isn’t in the EU, it might still have to follow GDPR rules. That means businesses all over the world, including those in the US, might need to meet GDPR requirements.

Does GDPR apply to US Citizens or residents?

GDPR doesn’t apply to people in the US, but it has led to similar laws in the US. One big example is the California Consumer Privacy Act (CCPA).

The CCPA, similar to GDPR for people in the EU, grants individuals in California greater control over how businesses gather and utilize their personal data.

When did GDPR go into effect?

GDPR started on May 25, 2018.

The European Parliament and European Council first agreed on GDPR in April 2016. However, EU countries had two years to follow the rules. During this time, countries could make some small changes to fit their needs. But by May 25, 2018, they had to make sure GDPR worked in their countries.

By that date, organizations that use personal data from EU residents or offer things to them had to follow GDPR.

Who enforces GDPR?

Each of the 27 EU member states has data protection authorities that make sure GDPR rules are followed. These authorities are separate from the government and have the power to investigate and fix problems with GDPR compliance.

They handle things like investigating complaints, providing advice on data protection, and determining whether GDPR rules have been broken. They can also impose fines.

All the data protection authorities work together as the European Data Protection Board (EDPB), which ensures that GDPR rules are the same across the EU.

The EDPB doesn’t enforce the rules itself. Instead, it advises the data protection authorities on what the rules mean and helps the European Commission with data protection laws and issues.

GDPR fines and penalties

GDPR is famous for its hefty fines for breaking the rules. For example, in 2021, Amazon got a fine of over $880 million for tracking user data without getting the right permission. Google has also paid many fines for breaking GDPR rules, adding up to over $200 million.

To know more about GDPR fines and penalties, keep reading.

Tiers of GDPR fines and penalties

GDPR has two levels of fines, depending on how bad the violation is. 

For less serious violations, the fine can be up to 10 million euros, or 2% of the company’s yearly global revenue from the previous financial year, whichever is more.

For more serious violations, like breaking the main GDPR rules about consent, people’s rights, or how data is used, the fine can be up to 20 million euros, or 4% of the company’s yearly global revenue from the previous financial year, whichever is more. Plus, the people affected by the breach can ask for money to make up for any harm.

How much is a GDPR fine?

GDPR fines are determined by the data protection regulator in each EU country. They assess two primary factors: first, whether there was a breach, and second, the severity of the breach.

If multiple violations are found, the organization is only fined for the worst one (as long as they’re all part of the same thing).

To decide on a fine and how big it is, the regulator uses these 10 things:

1. How bad was it? What happened, why, and how many people were affected?
2. Did the organization mean to break the rules, or was it an accident?
3. Did they try to make things better for the people affected?
4. Did they try to follow GDPR rules before the problem?
5. Did they break the rules before?
6. Did they help the regulator find and fix the problem?
7. What kind of personal data was affected?
8. Did they tell the regulator about the problem?
9. Were they certified before, or did they follow the rules?
10. Did they get any money or avoid losing money because of the problem?

Ready to simplify your GDPR compliance process? 

With the CyberArrow GRC platform, you can automate manual tasks and streamline the implementation of GDPR requirements. Our user-friendly platform helps organizations easily navigate GDPR complexities, saving time and resources. Schedule a free demo today to see how CyberArrow GRC can simplify your compliance journey and keep your organization protected.