GDPR

Definition

The General Data Protection Regulation (GDPR) is a comprehensive data protection law in the European Union that took effect on May 25, 2018, aimed at enhancing individuals' control over their personal data. This regulation not only sets strict guidelines for the collection and processing of personal information but also imposes significant obligations on organizations handling such data, ensuring transparency, consent, and data security, which are vital across various aspects of e-commerce.

5 Must Know Facts For Your Next Test

1. GDPR applies to any organization that processes personal data of EU citizens, regardless of the organization's location.
2. Organizations must obtain explicit consent from individuals before collecting their personal data, and this consent must be easy to withdraw.
3. Individuals have the right to access their data, request corrections, and demand deletion under the 'right to be forgotten.'
4. Non-compliance with GDPR can lead to heavy fines, reaching up to 4% of a company's global annual revenue or €20 million, whichever is higher.
5. The regulation emphasizes data protection by design and by default, requiring organizations to incorporate privacy measures from the outset of any data processing activities.

Review Questions

• How does GDPR impact the way organizations collect and manage customer data?
  • GDPR significantly alters the approach organizations must take in collecting and managing customer data. It mandates that companies obtain explicit consent from individuals before processing their data and requires transparency regarding how this information is used. Organizations are also obligated to provide customers with access to their data and the ability to correct or delete it. This means that e-commerce businesses must implement clear procedures and policies that align with GDPR requirements to ensure they respect consumers' rights and maintain compliance.
• In what ways does GDPR enhance data protection and privacy laws compared to previous regulations?
  • GDPR enhances data protection and privacy laws by introducing more stringent requirements for consent and greater rights for individuals regarding their personal information. Unlike earlier regulations, GDPR emphasizes accountability and requires organizations to demonstrate compliance through documentation and evidence of consent. Additionally, it expands individual rights, including the right to portability of data and the right to be informed about breaches. These improvements ensure that individuals have stronger control over their personal data in a digital world.
• Evaluate the implications of GDPR on international e-commerce practices and cross-border data transfers.
  • GDPR has significant implications for international e-commerce practices as it governs how personal data is handled across borders. Organizations outside the EU that process EU citizens' data must comply with GDPR requirements, which may necessitate changes in their operations. Furthermore, cross-border data transfers can only occur if adequate protection measures are in place to ensure that the data remains secure according to GDPR standards. This creates challenges for companies aiming to operate globally while adhering to strict EU regulations, necessitating a reevaluation of their data handling practices and partnerships with third-party services.

Related terms

Data Subject: An individual whose personal data is collected, stored, or processed by an organization.

Data Breach: An incident where unauthorized access to personal data occurs, potentially exposing sensitive information.

Privacy Policy: A legal document that outlines how an organization collects, uses, and protects personal data, including compliance with regulations like GDPR.