Everything About GDPR / Part 2

3- Key Principles of GDPR

The foundation of the General Data Protection Regulation (GDPR) is a set of core principles that specify how companies and organizations must manage personal data. These guidelines serve as the cornerstone of data security and privacy procedures, guaranteeing that people’s rights are upheld while holding businesses responsible for their data processing operations. Businesses can build strong data protection frameworks, preserve legal compliance, and cultivate consumer trust by following these guidelines.

Personal data must be gathered, stored, and processed by organizations in an ethical and responsible manner. The GDPR principles, which place a strong emphasis on accountability, transparency, and fairness, act as guidelines for appropriate data management. A thorough explanation of these fundamental ideas is provided below, beginning with one of the most important ones: lawfulness, justice, and transparency. A thorough explanation of these fundamental ideas is provided below

Lawfulness, Fairness, and Transparency

Businesses must have a valid reason for gathering and using personal data, which is one of the core requirements of GDPR. In order to give people a clear understanding of how and why their data is being processed, organizations must make sure that data collection is carried out in a fair, moral, and transparent manner.

Lawfulness: Under GDPR, businesses must have a legitimate reason for processing personal data. Obtaining individuals’ express consent, fulfilling contractual obligations, adhering to legal requirements, safeguarding vital interests, performing tasks in the public interest, and pursuing legitimate business interests are the six legal bases for processing data. Data processing would be deemed illegal if it did not satisfy at least one of these requirements, exposing businesses to fines from the government.

Fairness: The fairness principle guarantees that personal information is managed in a way that doesn’t deceive, take advantage of, or hurt people. Companies are not allowed to gather personal information under false pretenses or use it in ways that might lead to discrimination or undue disadvantage. When personal information is misused or handled improperly, data subjects shouldn’t be treated unfairly. When assessing whether data processing procedures comply with the fairness principle of the GDPR, ethical considerations are crucial.

Transparency: Establishing trust between individuals and organizations requires transparency. People are entitled to information about the collection, processing, storage, and sharing of their data. Companies must provide privacy policies that are easy to read, understand, and provide important information about what data is being collected, why, how, and whether it will be stored and shared with third parties. Businesses that don’t uphold transparency run the risk of not complying with GDPR, which can result in hefty fines and harm to their reputation.

Businesses can develop a data protection framework that not only satisfies legal requirements but also encourages consumer trust and confidence by adhering to the principles of lawfulness, fairness, and transparency. These guidelines guarantee that people have more authority over their personal information, while businesses

Limitation of Purpose

Companies must only gather personal data for clear, defined, and legitimate purposes. This principle keeps companies from abusing personal data for unauthorized or unexpected uses and guarantees that data subjects are aware of the reasons behind the collection of their data.

In order to adhere to this principle, organizations need to:

Declare the goal of the data collection process clearly when the information is being gathered. People should know if their data will be shared with third parties and how it will be used.
Limit the collected data’s use to the stated purpose. If a company gathers personal information for one purpose, it cannot use it for another unrelated purpose without a valid reason.
Stop data from being reused without permission or without making sure the new use closely resembles the original intent.

For instance, unless the customer has specifically consented to receive promotional emails, a company cannot use email addresses it has collected from customers to send order confirmations for marketing purposes. A business must either secure new consent or make sure the new use stays in line with the original purpose specified at the time of collection if it wants to use personal data for a different purpose.

Data Minimization

Businesses must adhere to the data minimization principle, which states that they should only gather the information that is absolutely required for the intended use. Adopting a “less is more” strategy when handling personal information is essential because excessive data collection raises security risks and makes compliance efforts more difficult.

In order to follow this guideline, companies should:

Request just the bare minimum of information needed to achieve the stated goal.
Don’t gather private or sensitive data unless it is absolutely required.
Make sure that every piece of information gathered has a direct connection to its intended purpose.

For example, an online merchant who needs a customer’s shipping address to fulfill an order does not have to inquire about their marital status or political affiliation. In addition to raising the possibility of privacy violations, needless data collection makes it more difficult for companies to handle and safeguard the data they hold.

Organizations can improve security, lower compliance risks, and increase customer trust by only collecting the data that is necessary.

Accuracy

GDPR requires that all personal information gathered and kept by businesses be current and accurate. Outdated or inaccurate information can cause inefficiencies, misunderstandings, and even personal injury. Companies must therefore take proactive measures to guarantee the accuracy of their records.

In order to ensure data accuracy, organizations ought to:

Put procedures in place to examine and update stored data on a regular basis.
Give people the option to view, amend, and update their personal data as needed.
Eliminate any information that is inaccurate, out-of-date, or no longer pertinent to the original goal.

For instance, in order to guarantee that clients receive critical notifications, like fraud alerts or billing statements, financial institutions must permit them to update their contact information. Similarly, in order to avoid medical errors that could have major repercussions, healthcare providers need to make sure that patient records are accurate.

There may be monetary fines, harm to one’s reputation, and legal repercussions for keeping inaccurate records. Businesses that prioritize data accuracy not only adhere to GDPR regulations but also improve customer relations and operational efficiency.

Limitation on Storage

Businesses are not allowed to keep personal data for an extended period of time. Businesses must create clear data retention policies that outline how long data should be kept on file and when it needs to be erased or anonymized in order to comply with GDPR. These regulations lessen the risks connected with excessive data storage and guarantee that data is only kept for as long as is required.

In order to adhere to this principle, organizations ought to:

Clearly define the duration of retention based on the reason for data collection.
Examine stored data on a regular basis and eliminate any information that is no longer needed.
To avoid identifying specific people, anonymize data that is required for statistical or research purposes.
Observe the “Right to Be Forgotten,” which gives users the option to ask for their personal information to be deleted when it is no longer required.

For example, in order to process refunds, an online retailer might need to keep track of past purchases for a specific amount of time. After that time has passed, the data must be deleted. In the same way, if a candidate is no longer being considered for a job, the recruiting firm should delete their resume. The risk of data breaches, security flaws, and non-compliance fines can rise when appropriate data retention policies are not put in place.

Integrity and Confidentiality (Security Principle)

One of the most important aspects of GDPR is safeguarding personal information against breaches, cyberattacks, and illegal access. Strong security measures must be put in place by organizations to preserve the integrity and confidentiality of the data they gather and keep.

Important security precautions consist of

Sensitive information is encrypted to stop unwanted access.
Putting in place safe storage options that lower the possibility of data breaches.
Strict access controls must be implemented to guarantee that sensitive data can only be handled by authorized personnel.
Identifying and reducing vulnerabilities through routine security audits and risk assessments.

Among the best data security practices are

For financial transactions, end-to-end encryption is used to safeguard user data.
Putting multi-factor authentication (MFA) into place for user accounts to stop unwanted access.
Putting in firewalls, intrusion detection systems, and anti-malware software to protect against online attacks.

Under GDPR, there are harsh penalties for failing to protect personal data, including fines of up to €20 million or 4% of a company’s yearly worldwide revenue. Businesses can reduce risks and stay in compliance by putting strong security protocols in place.

Accountability

Organizations must show continuous adherence to data protection laws under GDPR. Businesses must offer documented proof of their data handling policies, procedures, and security measures; merely claiming compliance is insufficient.

In order to guarantee accountability, organizations need to:

Keep thorough records of all data processing operations, including the gathering, storing, and sharing of data.
Perform Data Protection Impact Assessments (DPIAs) on a regular basis to assess and reduce privacy risks.
If necessary, designate a Data Protection Officer (DPO), particularly for businesses that manage substantial volumes of personal data.
Provide explicit internal compliance frameworks, including privacy guidelines and training courses for staff members on data security and GDPR compliance.

A multinational company that handles enormous volumes of personal data, for instance, might have to designate a Data Protection Officer (DPO) to supervise adherence to and guarantee that GDPR regulations are fulfilled. Similarly, in order to monitor who has access to patient records and stop illegal disclosures, a healthcare provider needs to keep thorough access logs.

In addition to lowering the possibility of GDPR violations, proactive documentation of compliance activities aids businesses in gaining the confidence of regulators and consumers. Businesses can show their dedication to data protection and moral data practices by placing a high priority on accountability.

4- Legal Bases for Data Processing

Strict guidelines about when and how businesses can process personal data are established by the General Data Protection Regulation (GDPR). Data processing must have a legitimate legal basis, which is one of the fundamental requirements. The GDPR lists six legitimate reasons for processing personal data, each of which has a specific application. Before gathering or using personal data, organizations must make sure they fulfill at least one of these requirements.

Data processing is only allowed under GDPR if there is a valid and reasonable reason for it. These legal foundations guarantee the equitable, open, and responsible handling of personal data. The six legitimate bases for data processing are listed below

Consent

One of the main tenets of GDPR is that consent must be freely given, explicit, and informed. Pre-checked boxes or presumed consent are not allowed because people must voluntarily consent to data processing. In addition, people ought to be free to change their minds at any moment without repercussions.

This legal foundation is frequently applied in situations like newsletters, marketing campaigns, and subscription services. For example, before sending customers promotional emails, a business needs to get their explicit consent. Businesses must also give people an easy-to-use method to withdraw their consent if they decide they no longer want their data processed.

Contractual Necessity

Data processing is covered by the contractual necessity basis when it is necessary to carry out a contractual obligation. This implies that if a person and an organization sign a contract, the organization may process the personal information required to carry out the terms of the agreement.

For instance, in order to finish a transaction, an online retailer needs personal information like a shipping address and payment information. In a similar vein, a service provider might require personal information from a client in order to fulfill a service obligation under a contract. Processing personal data is justified in these situations since it is directly necessary to provide the agreed-upon service.

Legal Requirements

In order to meet regulatory requirements, organizations are frequently mandated by law to process personal data. When data processing is required to satisfy legal, tax, or employment-related obligations, this legal basis is applicable.

Employers, for example, are required to process and store employee data for payroll and tax reporting purposes. Similarly, in order to adhere to anti-money laundering laws, financial institutions might have to keep transaction records. In these situations, businesses must make sure they only handle the data required to carry out their legal obligations while adhering to data protection laws.

Vital Interests

The vital interests basis is applicable when processing data is required to save a person’s life or health. This argument is especially pertinent in emergency situations, especially in medical facilities.

For instance, in order to provide immediate medical attention to a patient in an emergency, physicians and paramedics might need to access their medical records without the patient’s prior consent. The vital interests basis guarantees that data protection laws do not impede life-saving interventions.

Public Task

Organizations can rely on the public task basis when data processing is necessary to complete tasks in the public interest or under official authority. This mostly pertains to public institutions, governmental entities, and businesses that offer crucial public services.

For example, government organizations might have to handle voter registration databases, process census data, or carry out public health studies. In a similar vein, universities may use this rationale to process personal data for research projects that advance public understanding. This legal foundation guarantees that privacy restrictions won’t interfere with government operations or vital public services.

Legitimate Interests

As long as the processing does not infringe upon the rights and liberties of individuals, organizations are permitted to process personal data on the basis of legitimate interests. This foundation is frequently applied when companies have a strong justification for processing data that helps them while protecting the privacy of individuals.

Businesses might utilize this foundation, for instance, for direct marketing, network security, or fraud prevention. As long as it puts measures in place to protect individual rights, a company that performs fraud detection analysis on transactions can defend data processing under legitimate interests. Before relying on this basis, organizations must carefully consider whether their legitimate interests outweigh the possible impact on individuals’ privacy.

5- Rights of Individuals Under GDPR

The General Data Protection Regulation (GDPR) gives people a set of rights intended to guarantee control, openness, and equity in the way that companies and organizations handle their personal data. These rights hold businesses responsible for ethical data practices while enabling people to access, edit, and manage their personal information.

Right to Know

People are entitled to information about the collection, use, and storage of their personal data. The goal of data collection, the duration of data retention, and whether or not data will be shared with third parties must all be covered in clear, easily accessible, and comprehensive privacy notices provided by organizations. People can make educated decisions about disclosing their personal information thanks to this transparency, which also fosters trust.

Online retailers, for instance, are required to clearly disclose the reasons behind their collection of customer email addresses, including marketing, order confirmations, and account verification. Any use beyond the specified purpose necessitates the individual’s new consent.

Right of Access

People can ask to see the personal information that businesses have on file about them. They can use this right to confirm that their information is accurate, comprehend how it is being processed, and make sure it is being handled legally. Within a month of receiving the request, organizations are required to provide this data, usually at no cost.

A social media site must, for example, enable users to request a copy of all the information they have saved, including messages, posts, and login records. This guarantees that users understand what data is saved and how it is being used.

Right to Rectification

A person has the right to request corrections if their data is inaccurate, lacking, or out-of-date. To guarantee that the data stays accurate, organizations must update or complete it as soon as possible.

When inaccurate data can have major repercussions, this right is essential. Credit scores may be impacted, for instance, if a bank has a customer’s incorrect contact information, which may result in missed payment notifications. In the medical field, erroneous patient records may result in inappropriate treatment regimens.

Right to Erasure (Right to be Forgotten)

People can ask for their personal data to be deleted under certain conditions. This is applicable when consent is revoked, the processing is illegal, or the data is no longer required for the initial reason it was collected.

A user who stops using a social media site, for instance, can ask to have their account and all related information deleted. For people who want to have their personal information deleted from public databases, like search engine results or out-of-date professional profiles, this right is extremely crucial.

Right to Restrict Processing

Under specific circumstances, people have the right to request that the processing of their data be restricted. This implies that even though a company may keep the data, it is not allowed to process it further without the person’s permission.

When someone disputes the accuracy of their data or objects to its use, this right can be helpful. For example, if a consumer contests a mistake in their credit report, the credit bureau is required to temporarily stop processing the information until the dispute is settled.

Right to Data Portability

This right enables people to transfer their personal data to another service provider by obtaining it in a machine-readable, widely-used format. People who move between digital services, like social media, cloud storage, or banking, will find this especially helpful.

A user might want to export their playlist history, for instance, from one music streaming service to another without erasing their saved songs or preferences. GDPR makes sure that data restrictions don’t force people to use a specific service.

Right to Object

For certain reasons, people may object to the processing of their data, especially if it is being used for marketing or profiling. Unless they can provide strong, justifiable reasons to continue, organizations must abide by these objections and cease processing the data.

Direct marketing is a typical example. A person can object to further processing of their data for marketing purposes if they no longer wish to receive promotional emails from a company. In order to comply, the business must take them off of marketing lists right away.

Rights of Automated Decision-Making

People are protected by GDPR from being the subject of automated decision-making without human input, especially when those decisions have important ramifications. This covers automated evaluations such as credit scoring, loan approvals, and screenings of job applications.

For instance, the applicant has the right to ask for a human review of the decision if the bank determines loan eligibility using an algorithm. By doing this, biased or unfair results are avoided and automated systems are guaranteed to remain fair, transparent, and accountable.

6- Responsibilities of Businesses

Businesses have important obligations under the General Data Protection Regulation (GDPR) to handle people’s personal data in a way that is transparent, safe, and compliant with the law. In order to prevent unauthorized access, misuse, or breaches, businesses must take proactive steps to protect data privacy and adhere to stringent regulations.

The restriction of automated decision-making is one of the most important areas of GDPR compliance. Algorithms and other fully automated systems that make decisions without human intervention are protected from people. This is especially important in circumstances where a person’s livelihood or general well-being may be impacted, such as credit approvals, employment application screenings, and insurance risk assessments. In order to guarantee justice, accountability, and transparency, people are entitled to contest an automated decision and ask for human intervention under GDPR.

GDPR lays out a number of important obligations for companies, in addition to shielding people from unjust automated decisions. These obligations include putting in place robust data protection measures, keeping accurate records, guaranteeing security, and reacting suitably to data breaches.

Under GDPR, companies must take important precautions to safeguard user data

Data Protection by Design & Default

GDPR mandates that companies incorporate data protection safeguards into their systems, services, and procedures from the outset—a principle referred to as “Data Protection by Design & Default.” Businesses must make sure that privacy considerations are a fundamental aspect of their operations rather than treating security as an afterthought.

This implies that whenever a new system, service, or product is created, privacy controls that reduce data collection and limit needless exposure must be incorporated. Sensitive information should not be shared needlessly or kept for longer than necessary if personal data is processed with the highest level of protection by default.

For example, if users wish to share their information publicly, they should have to actively opt-in. Strict privacy settings should be enabled by default on social media platforms. Similarly, instead of asking for too much personal information that isn’t relevant to the transaction, an online retailer should only gather the information that is absolutely necessary to process an order.

DPO Appointment

A Data Protection Officer (DPO) must be appointed by any organization that handles a lot of sensitive personal data, such as financial institutions, healthcare providers, or tech companies that track a lot of users. Overseeing an organization’s data protection strategy, ensuring GDPR compliance, and serving as a liaison between the business, regulatory bodies, and data subjects are the responsibilities of the DPO.

A DPO is especially important for companies that:

Monitor people on a regular and methodical basis (e.g., tracking employee performance or customer behavior).
Manage the extensive processing of private information, including financial or medical records.
Collaborate with public organizations or government agencies where privacy is a top priority.

The DPO answers questions from customers or regulators about data protection, makes sure that privacy is always the first priority in every department, and counsels staff on best practices for handling data.

Records of Processing

Businesses are required by GDPR to keep thorough records of all data processing operations. These documents have to contain:

The categories of personal information gathered.
The goal of gathering and processing data.
The justification provided by law for data processing.
The individuals who receive access to the data (e.g., business partners, third-party service providers).
How long information is kept on file.

Businesses show accountability and transparency in their data handling procedures by maintaining accurate records. Additionally, these documents help companies evaluate their compliance levels and support regulators during audits.

To ensure compliance with GDPR’s data security requirements, for instance, a healthcare provider that stores patient records must keep a log that explains when and why patient data was accessed. Similarly, an online retailer needs to record the way that client information is handled from the time of order placement to the point of delivery, making sure that the data is handled accurately at every turn.

DPIAs (Data Protection Impact Assessments)

A company must perform a Data Protection Impact Assessment (DPIA) before engaging in any activities that present a high risk to the privacy of individuals. Businesses can use this risk assessment method to find possible privacy issues before launching a new project or piece of technology.

DPIAs are especially necessary in the following situations:

A business launches a new technology that collects a lot of data (e.g., AI-driven customer analysis or facial recognition).
Processing personal data (e.g., credit scoring, employee monitoring) may lead to discrimination or harm.
Individuals are being tracked extensively (e.g., location tracking, online behavior profiling).

Businesses can ensure compliance and safeguard users from potential harm by proactively assessing privacy risks and taking corrective action before an issue arises through the implementation of a DPIA.

Security Precautions

Strong security measures must be put in place by businesses to stop breaches, illegal access, and data loss. The need for a multi-layered security approach is emphasized by GDPR and includes:

Encryption: Sensitive information is protected through encryption, which turns it into unintelligible formats that require the right key to decrypt.
Pseudonymization: To reduce exposure in the event of a breach, pseudonymization involves substituting artificial identifiers for personal ones.
Access controls: Limiting authorized personnel’s access to data according to their job duties.
Firewalls & Anti-Malware Software: By protecting networks and systems, firewalls and anti-malware software stop hacking attempts and cyberattacks.

For example, to protect consumer financial information from hackers, an online banking platform should encrypt every transaction from beginning to end. In a similar vein, restricted access permissions should be used by the HR department managing employee records to ensure that only authorized personnel can view sensitive data.

Managing Data Breaches

Businesses are required by GDPR to respond quickly in the event that a data breach exposes the personal information of individuals. In the event of a breach, companies must:

Within 72 hours of learning about the incident, notify the relevant data protection authority.
If there is a substantial risk to the affected individuals’ rights due to the breach—for example, by disclosing login credentials or financial information—notify them as soon as possible.
As soon as possible, contain the breach, evaluate the damage, and put corrective measures in place to stop similar incidents in the future.

If a cyberattack occurs on an e-commerce website, for instance, and customer credit card information is compromised, the business must promptly notify the impacted users, suggest that they update their payment information, and put in place more robust security measures to stop the attack from happening again. If this isn’t done, the business may face severe GDPR fines and reputational harm.

Continue Reading

Written By: Anshul Jharia

Raznameh Group