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What are the Key Requirements for GDPR Compliance?

The General Data Protection Regulation (GDPR) is a comprehensive legal framework enacted by the European Union (EU) to safeguard the personal data of its citizens. Enforced since May 25, 2018, it not only applies to organizations within the EU but also to businesses worldwide that handle the personal data of EU citizens. The regulation sets out strict rules regarding how personal data is collected, stored, processed, and shared. Failure to comply can result in substantial fines and penalties, making GDPR compliance a crucial priority for businesses globally.

This article will explore the key requirements of GDPR compliance, with references to relevant articles within the regulation, helping businesses understand the actions they must take to ensure they meet these obligations.

1. Lawful Basis for Data Processing (Article 6)

One of the fundamental requirements of GDPR is that organizations must have a lawful basis for processing personal data. GDPR outlines six legal bases on which personal data can be processed:

  • Consent: The data subject has given explicit and informed consent for their data to be processed for specific purposes (Article 6(1)(a)).
  • Contractual Necessity: Processing is necessary to fulfill a contract with the data subject or to take steps at the request of the data subject prior to entering into a contract (Article 6(1)(b)).
  • Legal Obligation: Processing is necessary for compliance with a legal obligation (Article 6(1)(c)).
  • Vital Interests: Processing is necessary to protect the vital interests of the data subject or another person (Article 6(1)(d)).
  • Public Interest or Exercise of Official Authority: Processing is necessary to perform a task carried out in the public interest or in the exercise of official authority (Article 6(1)(e)).
  • Legitimate Interests: Processing is necessary for the legitimate interests of the controller or a third party, except where these interests are overridden by the interests or rights of the data subject (Article 6(1)(f)).

Organizations must clearly identify and document the lawful basis for all data processing activities.

2. Obtaining Informed Consent (Article 7)

If an organization relies on consent as the lawful basis for processing, the consent must meet specific criteria outlined in GDPR. According to Article 7, consent must be:

  • Freely given: The individual must have a genuine choice and control over whether or not to provide consent.
  • Specific: Consent must be given for a particular purpose, and blanket or vague consents are not acceptable.
  • Informed: Data subjects must be provided with clear information about what they are consenting to, including details about the data controller, the purpose of data processing, and their rights.
  • Unambiguous: Consent must be expressed through a clear affirmative action, such as opting in via a checkbox. Silence, pre-ticked boxes, or inactivity does not constitute valid consent.

Additionally, the organization must keep records of consent and provide an easy way for data subjects to withdraw their consent at any time.

3. Data Minimization and Purpose Limitation (Articles 5(1)(b) and 5(1)(c))

GDPR emphasizes the principles of data minimization and purpose limitation to ensure that personal data is processed responsibly and in a way that respects individuals’ privacy:

  • Data Minimization: Organizations should only collect personal data that is necessary for the specific purpose for which it is being processed (Article 5(1)(c)). Excessive data collection is a violation of GDPR, and companies must regularly evaluate their data collection processes to ensure compliance.
  • Purpose Limitation: Personal data must only be collected for explicit, legitimate, and specified purposes (Article 5(1)(b)). Organizations cannot later use the data for purposes that are incompatible with the original reason for its collection unless they obtain additional consent.

4. Transparency and the Right to Information (Articles 12-14)

GDPR requires organizations to be transparent about how they handle personal data. Articles 12 through 14 outline the need to provide clear and accessible information to data subjects about the following:

  • Identity and contact details of the data controller.
  • Purpose for which the data is being processed.
  • Lawful basis for processing.
  • Recipients or categories of recipients to whom personal data may be disclosed.
  • Retention period for which the data will be stored.
  • Rights of the data subject, including the right to access, rectify, erase, and restrict the processing of their data.
  • Right to lodge a complaint with a supervisory authority if they believe their rights have been violated.

This information must be provided at the time the data is collected (Article 13) or within a reasonable period when personal data is obtained indirectly (Article 14).

5. Data Subject Rights (Articles 15-22)

GDPR gives individuals enhanced control over their personal data, granting several rights to data subjects that organizations must honor:

  • Right of Access (Article 15): Data subjects have the right to request access to their personal data and to obtain information about how it is being used. Organizations must respond to such requests within one month.
  • Right to Rectification (Article 16): Data subjects can request that their inaccurate personal data be corrected without delay.
  • Right to Erasure (Article 17): Also known as the “right to be forgotten,” individuals can request the deletion of their personal data when it is no longer necessary for the purposes for which it was collected or if they withdraw their consent.
  • Right to Restriction of Processing (Article 18): Data subjects can request the restriction of processing under certain circumstances, such as when the accuracy of the data is contested.
  • Right to Data Portability (Article 20): Data subjects have the right to receive their personal data in a structured, commonly used format and to transmit that data to another controller.
  • Right to Object (Article 21): Individuals can object to the processing of their data in certain situations, particularly when the processing is based on legitimate interests or involves direct marketing.

Organizations must have procedures in place to handle these requests promptly and effectively.

6. Data Security and Breach Notification (Articles 32-34)

GDPR places a strong emphasis on ensuring that personal data is processed securely. Article 32 outlines the requirements for implementing appropriate technical and organizational measures to safeguard data, including:

  • Encryption: Where appropriate, organizations should encrypt personal data to protect it from unauthorized access.
  • Regular Testing: Companies must regularly test, assess, and evaluate the effectiveness of their security measures to ensure ongoing compliance.

In the event of a data breach, GDPR requires organizations to:

  • Notify the Supervisory Authority: If a data breach is likely to result in a risk to the rights and freedoms of individuals, the breach must be reported to the relevant data protection authority within 72 hours (Article 33).
  • Notify Data Subjects: If the breach poses a high risk to individuals, the organization must also inform affected data subjects without undue delay (Article 34).

7. Data Protection Impact Assessments (Article 35)

GDPR mandates the use of Data Protection Impact Assessments (DPIAs) when processing operations are likely to result in a high risk to the rights and freedoms of individuals. Article 35 requires that a DPIA be conducted in scenarios such as:

  • Large-scale processing of sensitive personal data.
  • Systematic monitoring of publicly accessible areas.
  • Automated decision-making or profiling that significantly affects individuals.

A DPIA helps organizations identify and mitigate potential privacy risks before they engage in new data processing activities.

8. Appointment of a Data Protection Officer (Articles 37-39)

Organizations that engage in large-scale processing of sensitive data or regular monitoring of individuals are required to appoint a Data Protection Officer (DPO) under Article 37. The DPO is responsible for overseeing data protection strategies, ensuring compliance with GDPR, and acting as a point of contact between the organization and supervisory authorities.

The DPO must operate independently and cannot be penalized for performing their duties. Smaller organizations may not need a DPO, but they must still ensure that someone is responsible for data protection compliance.

Conclusion

Achieving GDPR compliance is a multifaceted process that involves understanding and implementing the key requirements outlined in the regulation. From establishing a lawful basis for data processing and obtaining informed consent to safeguarding data through security measures and honoring data subjects’ rights, GDPR compliance requires businesses to take a proactive approach to data protection.

By staying informed about the requirements and regularly reviewing their data practices, organizations can reduce the risk of non-compliance and build trust with their customers by demonstrating a commitment to protecting personal data.

Need More Details?

Read the full GDPR text here.