What is GDPR compliance? How Domain.com helps you comply
The General Data Protection Regulation (GDPR) is a European Union (EU) law that governs how companies and organizations handle personal data of EU citizens, also known as data subjects. Since its enactment in 2018, GDPR has become one of the strongest data privacy laws in the world today.
In this article, we’ll review the essential things you should know about GDPR compliance and how you can achieve this with help from Domain.com.
What is GDPR compliance?
GDPR compliance means that a business or an organization follows the General Data Protection Regulation.
GDPR aims to protect personal data and grants individuals control over how companies use, share, and collect personal data in the European Union.
The GDPR has three main objectives.
- Protect EU citizens’ rights to privacy.
- Unify data privacy laws across the EU by replacing the 28 individual EU member state laws and the previous 1995 European Data Protection Directive.
- Adapt privacy laws that reflect the ever-changing technology.
Two main entities play a crucial role in GDPR compliance: the data controller and the data processor.
A data controller is a natural person, public authority, or body that, alone or joint with others, oversees the purposes and means of processing personal data. A data controller ensures that all data processing activities align with GDPR.
On the other hand, a data processor is a legal or natural person, public authority, or body that processes personal data on behalf of the data controller. The processor follows the instructions provided by the controller. A data processor is also required to ensure data protection compliance.
The importance of GDPR compliance
GDPR compliance is crucial for businesses within and outside the EU as it establishes strong data protection laws and privacy standards.
For companies operating in the EU, compliance with GDPR is a legal obligation that ensures transparency in data handling practices. On the other hand, businesses outside the EU must adhere to GDPR standards to retain access to EU markets.
Showing that your business complies with GDPR demonstrates a genuine commitment to privacy and data security, which is key to building trust with customers—especially those in the EU. When customers know their data is handled responsibly, they’re more likely to engage with your business.
Additionally, under Article 83, the data protection law states that non-compliance can lead to significant fines. However, the regulation is flexible, with penalties that scale according to the size of the business. This means that organizations of all sizes can take the necessary steps to meet their responsibilities.
For less severe infringements, companies may face fines of up to 2% of their annual revenue from the previous financial year. More serious violations can result in penalties of up to 4% of yearly revenue.
7 key principles of GDPR
The GDPR outlines seven data protection principles that organizations must follow. These principles serve as a framework for GDPR compliance.
Lawfulness, fairness, and transparency
Organizations must process data legally, fairly, and in a transparent manner. This means that they need a valid legal basis for collecting data. They should also be honest with the data subjects about how the company will use their data.
Lastly, organizations and companies must provide clear and accessible privacy notices.
Purpose limitation
Organizations must collect data and use it for its intended purposes only. Companies should not use the citizen’s personal data for any unrelated purposes without further consent.
Data minimization
GDPR emphasizes that organizations should only collect personal data that is strictly necessary for their intended purposes. By limiting data collection, companies reduce privacy risks and protect individual rights.
Accuracy
Organizations should be responsible for keeping personal data accurate and up to date. However, companies must take steps to rectify or delete inaccurate data to fulfill transparency.
Storage limitation
Data controllers should not keep personal data longer than it needs to. GDPR mandates that organizations establish clear data retention policies.
Integrity and confidentiality
Protecting personal data is essential to a company’s GDPR compliance. So, organizations must implement adequate security measures to prevent unauthorized or unlawful processing. This includes measures like encryption and regular security assessments.
Accountability
This principle requires organizations to show compliance with GDPR. This means maintaining documentation, conducting impact assessments, and appointing data protection officers are necessary.
8 GDPR data subject rights
GDPR grants EU citizens several rights over their personal data. Here’s a breakdown of the eight data subject rights protected under GDPR.
The right to access
Data subjects have the right to know any information related to their personal data. They can request access to their data to see what information a company holds about them.
Data subjects have the right to know why and how a company processes and shares their data. This right helps individuals stay informed and aware of their data use.
The right to receive information
Transparency is key under GDPR. Companies must clearly inform users about how they process user data and the reasons for collecting personal data.
Privacy and policy notices should explain what types of data are collected, how long it will be kept, and the legal basis for processing it.
The right to data portability
Data subjects have the right to ask for their data to be provided to them or transferred to another data controller. When a data subject wants to access or transfer its data, the company should provide a machine-readable electronic format.
The right to erasure
Also known as the “right to be forgotten,” this allows data subjects to request a deletion of their personal data when it’s no longer necessary. This also applies when a data subject decides to withdraw consent or if the company has unlawfully processed their data subjects’ data.
The right to object
Data subjects have the right to say no to certain types of data processing. If a data subject objects, the organization must immediately stop processing the data.
The right to restrict processing
Data subjects have the right to put restrictions on processing their personal data. This right allows users to limit how companies use their data.
The right to rectification
Data subjects can request to correct inaccurate and incomplete personal data. This right ensures that individuals can keep their information up-to-date and correct any errors that may lead to misinformation.
The right to object automated processing
Data subjects have the right to avoid decisions based solely on automated processing, including profiling, that produce legal effects or significantly impact them.
Who needs to comply with GDPR?
GDPR applies to different organizations. Understanding who must comply is crucial for any business that handles personal data. Here are the key categories of organizations that fall under GDPR.
Businesses based in the EU
Any company that is established in the EU, regardless of where its customers live, must comply with GDPR. This includes all sectors, from small startups to large-scale multinational corporations and government authorities.
Businesses outside the EU
Organizations based outside the EU are also required to comply with GDPR. This means that even non-EU companies must adhere to GDPR rules, especially if they’re processing the personal data of EU residents.
How to be a GDPR compliant
Achieving GDPR compliance is vital for data controllers handling personal data, especially for entities outside the EU. Here are essential steps to ensure your business meets GDPR’s standards.
Conduct a data audit
Assess what personal data you collect. According to GDPR, personal data goes beyond data that’s used to identify a natural person. Personal data includes metadata, such as IP addresses, SIM cards, mobile numbers, biometric data, and stored website cookies.
Data controllers must also assess the processing of data and where it’s stored. This helps identify any compliance gaps related to the data collected.
Inform your customers why you’re processing their data
Since data subjects have the right to be informed, data controllers must communicate the reasons for collecting personal data and how they will use it.
By GDPR, controllers must help act upon and help data subjects practice their rights to data processing and privacy. Data controllers must present their requests for consent in clear and plain language (Article 12).
Strengthen data security measures
Review your data processing activities regularly to implement robust protection measures and minimize risks. Article 32 of the GDPR states that the controller and the processor should implement technical and organizational measures to ensure good-quality security.
Have a clear data processing agreement with your data processors
Ensure you have robust data processing agreements with all your data processors. For instance, in Article 29, the data processor should refrain from processing data subjects’ data except on instructions from the controller.
Appoint a data protection officer
Designate a DPO to oversee your data protection strategy and ensure compliance with GDPR. According to GDPR, the controller and the processor must assign a data protection officer to manage their data protection strategy and ensure compliance with GDPR (Article 37).
A data protection officer (DPO) independently ensures that entities apply the laws protecting individuals’ personal data. They also assist in monitoring internal compliance.
DPOs also inform data controllers about data protection obligations and give advice regarding Data Protection Impact Assessments (DPIAs)
Develop a data breach response plan
Develop a clear plan when responding to a data breach, including notification procedures and mitigation strategies.
Article 33 states that a data controller must notify the supervisory authority regarding any data breaches. The law states that data controllers must be able to inform the supervisory authority within 72 hours.
The same process must apply to the data processors. After learning about a personal data breach, the processor must notify the controller immediately.
Designate a representative in the European Union
If your organization is based outside the EU but processes EU citizens’ data, appoint a representative within the EU.
Article 27 states that the data controller or data processor outside the EU must assign a representative within the Member state of the European Union.
Comply with cross-border transfer laws
A company outside the EU must adhere to and follow due process. Article 45 states that the commission must decide whether or not the organization acquires an adequate level of protection.
It’s important to note that assessing the adequacy of the level of protection may take a few steps.
How Domain.com helps you with GDPR compliance
The main goal of GDPR is to keep user information safe, and our tools are designed to do just that. Our SSL certificates create a secure connection between your website and your visitors, which means any data shared, like names, emails, or payment details, is encrypted and protected from hackers. This added layer of security helps reassure your customers that their information is in good hands.
In addition to SSL certificates, we provide SiteLock. This feature actively monitors your website for potential threats, scanning for malware and vulnerabilities that could put your site at risk.
Achieve GDPR compliance with Domain.com
Understanding GDPR compliance is crucial for any organization that handles personal data. It’s not just about following the rules but respecting people’s privacy and building trust with your customers. Being transparent and taking care of personal data shows that you value your customers and their rights.
As you work towards meeting GDPR standards, remember that you don’t have to do it alone. Domain.com is here to support you every step of the way. We offer secure web hosting, easy-to-use privacy tools, and expert guidance to simplify the compliance process.
Frequently asked questions
GDPR cyber security refers to the measures and practices organizations must implement to protect personal data. It includes data encryption, access controls, and incident response strategies to safeguard sensitive information.
The GDPR is a European Union law that aims to protect EU citizens’ personal data and privacy.
No. However, if the company or organization is collecting and processing the personal data of an EU individual, it must comply with GDPR to avoid penalties.
The GDPR applies to all European Union (EU) member states, including France, Germany, and Spain. It also applies to the European Economic Area (EEA) countries: Iceland, Liechtenstein, and Norway.
Violating GDPR can result in significant fines, reaching up to 4% of a company’s global annual revenue. Organizations may also face legal actions, reputational damage, and mandatory audits to ensure compliance with data protection regulations.
NOTE: The information included on this page is meant to guide you through the process of understanding GDPR and is not a substitute for legal advice. Find more information on the GDPR website.