The General Data Protection Regulation (GDPR) is the legislation for data protection and the treatment of the privacy of Internet users native to European countries.

The need for data protection regulations arose with the natural advance of technology.

However, the increase in the volume of personal data collected and processed improperly has accelerated the process.

The General Data Protection Regulation came into force shortly after a historic data leak. The Facebook and Cambridge Analytica scandal culminated in the implementation of the GDPR.

The scandal that accelerated the introduction of the General Data Protection Regulation

In 2014, Facebook launched a viral game. Apparently, there was nothing wrong with it.

However, people who accessed the game unknowingly authorized the collection of data from their entire network of friends. By agreeing to the “Terms of Use”, the user allowed the platform access to third-party data.

Thus, the information of thousands of people around the world was sold by Facebook to the political consulting firm Cambridge Analytica.

In March 2018, the data leak was reported to major newspapers such as The New York Times and The Guardian by a former Cambridge Analytica employee.

The GDPR had already been approved by the European Parliament in 2016, however, the scandal accelerated its implementation in May 2018; two months after the data leak was reported.

Since its introduction, the General Data Protection Regulation has changed the way companies handle data, and this has affected the world of online business around the world.

Keep reading to find out how GDPR could affect your business.

General Data Protection Regulation and online business

Companies located outside Europe that do business online with European citizens must comply with the requirements of the GDPR. Otherwise, they are liable to the penalties and sanctions provided for in the law.

This is because companies selling to European citizens collect their data and, as the owners of users’ personal information, have to answer for its protection and storage.

The implications of non-compliance with the General Data Protection Regulation for foreign companies are severe.

What happens to those who break the law

Financial penalties of up to 20 million euros or 4% of the company’s global annual turnover (whichever is higher). These penalties are imposed at two levels, depending on the seriousness of the infringement:

• Less serious infringements: fines of up to 10 million euros or 2% of global annual turnover, applicable to failures such as failure to notify data breaches.

• More serious offenses: fines of up to 20 million euros or 4% of global annual turnover, applicable to severe violations, such as the lack of adequate consent from data subjects or the violation of data processing principles.

Non-compliance with the General Data Protection Regulation can result in serious damage to a company’s reputation.

Consumers are increasingly aware of the importance of their data privacy and tend to avoid companies that do not treat their personal data with due care.

Cases of data breaches and non-compliance often receive widespread media coverage, exacerbating reputational damage.

In extreme cases of ongoing non-compliance, EU authorities can ban a company from operating within the European market. For many global companies, exclusion from the EU market can have devastating consequences, considering the size and economic importance of the European Union.

And many other countries have also developed and adopted their own data protection regulations and laws, taking the GDPR as an example.

With the amount of data being collected on a daily basis, companies need to be aware of the requirements of the GDPR, if they do business with Europe, and of other legislation present around the world.

The importance of the DPO for your business

The DPO (Data Protection Officer) is the professional in charge of Information Security in companies. And nowadays, their presence is very important. It is a requirement of data protection laws.

In other words, the DPO has the specialized knowledge needed to understand the regulations and implement them properly within the organization, helping to avoid fines and penalties.

The DPO is also responsible for training employees, helping to create a culture of security within the organization.

These trainings enable employees to identify and respond to possible threats, as well as to reduce the risk of data breaches.

If your company does business with any European country, a DPO can train the teams that handle data so that they can meet the requirements of the General Data Protection Regulation.

In addition, they can learn to anticipate risks of leaks or even attempted Ransonware scams, which are common in organizations.

Security against scams and malware

Phishing scams, ransomware and malware spread via email. What happens is that an email can be fake, making it spam.

And when spam doesn’t carry unauthorized advertising, chain letters or rumors, it’s a repository for cybercrime, such as virtual scams.

Anyone who works with sending emails should pay attention to the reputation of partner companies, such as good email marketing platforms.

In addition, you need to build mailing lists in the right way, creating a connection with prospects through qualified content.

With email verification, you can create your list safe in the knowledge that the addresses belong to real people who are interested in receiving your email communications.

Conclusion

More than an obligation to comply with the law, GDPR compliance represents an opportunity to build trust and credibility. It highlights the company as responsible and committed to Data Protection.

In short, understanding and implementing GDPR strengthens the company’s reputation and promotes a safer and more transparent business environment.

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