There are many benefits to be gained by taking steps to ensure that your US company is compliant with the EU's General Data Protection Regulation (GDPR). For example, it can spur innovation and efficiency, both of which are good for your business. However, you need to know what to do and when.
Data processors vs data controllers
If you are a US company, there are many things to consider when assessing data processors and controllers. The GDPR has introduced new requirements for these entities. It will also impose a more significant cost on companies that handle personal data. Therefore, it is crucial to ensure that all data processing partners are compliant with the new regulations.
A data processor is a person or organization who processes personal data on the data controller's behalf. This may include a third-party company or public authority. Data processors are obligated to keep personal data securely, and to notify the data controller in the event that they are unable to process the data according to the instructions given by the data controller.
Depending on the nature of the processing, a processor may be required to secure the data, conduct regular security tests, or maintain backups. They must also enable the data controller to perform compliance audits.
A data controller is a legal entity that is responsible for collecting, processing, and controlling the use of personal data. These entities are usually an organization, or the owner of a website. However, a natural person or other legal entity can be classified as a data controller, too.
As a data controller, you need to be aware of the many legal obligations involved in the collection, processing, and storage of personal data. Among them are data minimization, accuracy of the processing, and integrity of the storage. In addition, you must prove that the processing is lawful and not a violation of privacy.
If you're a US company, you will have to assess your own contracts with data processors and controllers to make sure they are complying with the new regulations. For instance, if your business collects data on customers in the European Union, you will be required to register with the regulator and abide by its requirements. Additionally, you must be able to demonstrate that your data processors and controllers are compliant with the GDPR.
Processors are generally involved in more minor tasks than controllers. Their main responsibility is to process personal data on the data controller's behalf. When they do so, they are prohibited from transferring the data to third countries, unless they have a legal authorization to do so.
In the EU, a data processor is a company, agency, or other body that processes personal data on behalf of a data controller. The main difference between a processor and a controller is that a processor does the work, while a controller determines the exact way in which data is processed.
Under the new GDPR, processors and controllers will be held liable for breaches of the law. Controllers can be sued by the ICO, while processors will face the risk of fines or penalties from the supervisory authorities.
HR department must be informed of the new rules
The General Data Protection Regulation (GDPR) goes into effect on 25 May 2018. This regulation sets new rules for organizations that handle personal data. If you are a US company that offers goods and services to EU residents, you will need to comply with these regulations. These laws are aimed at protecting the privacy of individuals and simplifying the regulatory environment for business. Those that do not comply could face fines of up to 20 million euros or 4% of annual revenue.
To comply with GDPR, you will need to review your policies and procedures. It is important that your HR department is informed of the new rules. Specifically, you will need to update your staff contracts and ensure that your employees understand how to protect their own personal information.
You will also need to ensure that you have an effective data processing agreement with your third-party service providers. This will help you ensure that the process of processing your employee's data is in compliance with GDPR. For example, if you hire a third-party to conduct payroll processing, your contract should include provisions for processing this data in a secure manner.
Your HR department will also need to inform its employees about the changes to the law. They must be able to take legal action against their employer if they believe their rights have been violated. Those rights include the right to access and correct their personal data. In addition, they have the right to have their data erased.
Your HR department will also need to evaluate current data storage and retention practices. You will need to determine how much personal information is appropriate to retain. Ideally, your company should not store any data for longer than necessary.
Your HR department will also need to ensure that your employees have the necessary training to handle customer data. This includes knowing how to read a privacy notice.
The GDPR applies to organisations in the EU as well as to those outside the EU. Almost all operational teams will be affected. Those who are responsible for ensuring that data is handled in a compliant manner will be in high demand. As such, you should begin implementing the necessary changes as soon as possible.
One of the most important rules of GDPR is that you must have explicit consent from the data subject. Generally, you will only be able to use data for a specific purpose. However, there are exceptions to this rule. Depending on the specifics of your organization, you may need to get a full-time DPO to deal with the legal requirements of the law.
While the GDPR is an exciting development, it can also present significant challenges. For instance, it places an increased emphasis on the speed with which you delete documents. That means that you should be able to show that you are taking measures to eliminate all of your outdated records as soon as possible.
GDPR compliance can spur innovation and efficiency
The GDPR (General Data Protection Regulation) is an EU data privacy regulation that went into effect in 2018. It is designed to help organizations better manage personal information and reduce their risks of a security breach. It is also intended to give individuals greater control over their personal data. In this way, it encourages organizational privacy hygiene and cultivates social responsibility within the business.
As the regulation is enforced, it can result in significant changes to the way businesses operate. For example, a business must have a plan in place for how to store personal data. Additionally, businesses must ensure they have the consent of the subject to use their personal information. If they don't, the person has the right to request access to their information. They can submit a DSAR, which is a Data Subject Access Request.
Businesses that comply with the GDPR will be able to benefit from its ability to create opportunities for innovation and efficiency. This new standard provides a benchmark for businesses to meet. It also helps to build trust with consumers and increase customer loyalty. Using a data-driven approach, businesses can better understand the types of data they hold and the best ways to handle it. When businesses are able to demonstrate their responsibility and transparency, they can stand out from the crowd and gain more customers.
However, there are still a few areas where the regulation is not clear. Some organizations are having trouble with their auditing procedures. Others have found that their processes for handling DSARs (data subject access requests) need improvement.
Companies that are not in compliance can face hefty fines from privacy regulators. These penalties range from 4% of global revenue to EUR20 million. There are also additional costs that companies may incur. Such costs include loss of equivalence with the EU. That could mean a new barrier to trade with the EU.
Other hidden costs include lower productivity in industries that are powered by data. Furthermore, businesses that are not compliant will have to pay out more to suppliers. Similarly, non-compliance can result in reputational damage. Consumers are becoming more skeptical of how organizations treat their personal information.
A study by CYTRIO found that over 90% of US companies are not in full compliance with the requirements of the US data privacy regulation. This statistic shows that even the best intentions can lead to compliance issues. Whether a company has made the right choice in a vendor or not, they are responsible for making sure their practices are in full compliance.
GDPR is expected to spur innovation and improve a businesses' ability to create trust with customers. It is also a useful tool for marketing teams who are targeting smaller audiences. Finally, the law can lead to more effective decision-making by giving companies more insight into their data.