logo

    GDPR Enforcement: What Companies Can Expect and How to Avoid Penalties

    skycentral.co.uk | GDPR Enforcement: What Companies Can Expect and How to Avoid Penalties

    GDPR Enforcement: What Companies Can Expect and How to Avoid Penalties

    The General Data Protection Regulation (GDPR), enacted in May 2018, introduced a groundbreaking approach to data privacy and protection. It applies to all businesses operating within the European Union (EU) and companies outside the EU that target or collect data from EU citizens. The GDPR not only aims to enhance individuals’ control over their personal data but also serves as a significant deterrent for companies failing to comply with its provisions.

    Understanding GDPR Enforcement

    The GDPR has established a two-tiered enforcement system for non-compliance: administrative fines and administrative measures. While fines are the most prominent tool for enforcement, companies can still face additional consequences such as temporary or definitive bans on data processing, rectification orders, and data subject rights restrictions.

    The first tier of enforcement includes administrative fines, characterized by their severity and scaling based on the nature of violations. The maximum administrative fine can reach up to €20 million or 4% of the company’s global annual turnover, depending on which is higher. This emphasizes the importance of complying with the GDPR’s key principles and requirements.

    The second tier of enforcement involves administrative measures aimed at ensuring compliance with GDPR provisions. These measures include warning letters, reprimands, and orders to comply with data subject rights. Failure to comply with the requested measures can lead to stronger penalties, and repeated violations can escalate the severity of enforcement actions.

    Common Violations and Their Consequences

    Many companies struggle with GDPR compliance, often inadvertently violating its requirements. Some of the most common violations include:

    1. Lack of Consent

    One essential aspect of the GDPR is obtaining individuals’ explicit consent to process their personal data. Companies failing to obtain proper consent may face severe consequences. Consent should be freely given, specific, informed, and provided through a clear affirmative action. Failing to meet these requirements can result in penalties.

    2. Insufficient Security Measures

    Another common violation involves inadequate security measures to protect personal data. Companies must implement appropriate technical and organizational measures to safeguard personal data against unauthorized access, data breaches, and other risks. Failure to do so can lead to significant penalties.

    3. Failure to Notify Data Breaches

    The GDPR requires companies to report any data breach that poses a risk to individuals’ rights and freedoms to the relevant supervisory authority within 72 hours. Failure to notify such breaches can result in heavy fines, especially if companies neglect their obligation to inform affected individuals about the breach.

    4. Non-compliance with Data Subject Rights

    Individuals have certain rights under the GDPR, including the right to access, rectify, erase, restrict, and portability of their personal data. Companies failing to comply with these rights or impeding individuals’ exercise of their rights may face penalties.

    Avoiding Penalties and Ensuring GDPR Compliance

    Complying with the GDPR is crucial to avoid penalties and protect your business’s reputation. Here are some key steps companies can take:

    1. Understand and Map Your Data Flows

    Start by conducting a thorough data mapping exercise to understand what types of personal data you collect, where it is stored, how it is processed, and who has access to it. This will help you identify potential risks and ensure compliance throughout the data lifecycle.

    2. Obtain Valid Consent

    Review your consent mechanisms and ensure they meet the GDPR’s standard for obtaining valid consent. Clearly communicate the purpose of data processing, provide individuals with options to withdraw consent, and keep records to demonstrate consent was obtained properly.

    3. Implement Robust Security Measures

    Protect personal data by implementing appropriate technical and organizational measures. This may include encryption, restricted access controls, regular updates, employee training on data protection practices, and establishing incident response plans to mitigate breaches.

    4. Establish Data Breach Procedures

    Create a comprehensive data breach response plan that outlines the steps to be taken in the event of a breach. This should include notifying the relevant supervisory authority and affected individuals within the required time frame and taking immediate actions to mitigate the impact of the breach.

    5. Educate Your Employees

    Train your employees on the GDPR’s requirements and inform them about their responsibilities regarding data protection. Establish clear policies and procedures, and regularly provide updated training sessions to ensure everyone within the organization understands their roles in protecting personal data.

    6. Regularly Review and Update Your Privacy Policy

    Review and update your privacy policy to ensure it accurately reflects your data processing practices. Provide clear and transparent information about the types of data collected, the purpose of processing, data retention periods, and individuals’ rights. Make sure it is easily accessible to data subjects.

    7. Conduct Regular GDPR Audits

    Regularly audit your data processing activities to ensure ongoing compliance with the GDPR. This includes conducting internal assessments, reviewing data protection policies, and addressing any identified gaps or areas of improvement to minimize the risk of non-compliance.

    Conclusion

    GDPR enforcement is a reality that companies operating in the EU or processing EU citizens’ data cannot ignore. To avoid severe penalties, companies must understand the GDPR’s provisions, comply with its requirements, and prioritize data protection measures. By implementing robust security measures, obtaining valid consent, promptly addressing data breaches, and regularly reviewing and updating privacy policies, organizations can navigate the GDPR landscape and protect both their customers’ data and their reputation.