9 Pointer GDPR Compliance Checklist for Increased Security and Privacy

What is General Data Protection Regulation (GDPR)?

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The General Data Protection Regulation (GDPR) was adopted by the European Union (EU) in April 2016 after four years of deliberations and negotiations, replacing the outdated data protection directive from 1995.

Its objective was to harmonize data privacy laws across Europe, empower individuals, and reshape the way organizations approach data privacy.

Data protection of individuals ( also known as natural persons ) is considered a fundamental right under the EU’s GDPR. It is designed to give EU citizens more control over their personal data. It aims to simplify the regulatory environment for international business by unifying the regulation within the EU.

The GDPR was officially enforced on May 25, 2018. Since then, it has impacted not just EU-based businesses, but also any business that holds data of EU citizens.

With its implementation, organizations were propelled to be more transparent about how they use and process personal data. Non-compliance leads to hefty fines, and organizations worldwide have made significant changes to their operating models to meet GDPR requirements.

This blog talks about GDPR history, GDPR compliance checklist and the various exemptions and penalties associated with GDPR.

What is the Definition of GDPR compliance?

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GDPR compliance refers to an organization's adherence to the General Data Protection Regulation (GDPR), a law introduced by the European Union to protect the privacy and personal data of its citizens.

GDPR compliance requirements involves meeting various requirements, such as obtaining clear consent for data processing, protecting data against misuse, enabling individuals to easily access and control their data, and implementing necessary measures to ensure data security.

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What is the History of the General Data Protection Regulation Timeline?

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EU's data protection laws are well-respected worldwide. The growth of the internal market has led to more personal data being shared across borders.

This includes data exchange between individuals, businesses, and other entities across the EU.

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The following timeline outlines the significant milestones and events from 1995 to 2018 during the data protection reform process:
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Who Does the EU’s GDPR Apply to?

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GDPR applies to all sectors handling personal data of EU individuals. EU's GDPR applies to:

• Tech and Internet Services: Such as social media platforms, search engines, and software companies.

• Healthcare: Including hospitals, pharmaceutical companies, and health insurance firms.

• Financial Services: Like banks, credit card companies, and insurance firms.

• Retail and E-commerce: Retailers and e-commerce sites collecting customer data.

• Education: Educational institutions and online education platforms collecting student data.

• Marketing and Advertising: Companies tracking online behavior for digital marketing and advertising.

• Public Sector: Government agencies dealing with citizen data.

• Travel and Hospitality: Businesses like airlines, hotels, and travel agencies managing customer data.

Essentially, any organization processing personal data of EU individuals must comply with GDPR, regardless of its industry.

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What is the Purpose of GDPR Regulations?

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The purpose of GDPR regulations is highlighted below:

• Data processing safeguards personal information of individuals within and outside the EU affecting its citizens.

• The goal is to establish an area of freedom, security, justice, and an economic union, promoting progress, economic integration, and well-being.

• The aim is to harmonize protection of individual rights in data processing and ensure free data flow between Member States.

• This Regulation upholds all fundamental rights recognised in the Charter and Treaties.

• A robust data protection framework is needed to address impacts of technology and globalization on data collection and sharing within the Union.

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9 Pointer GDPR Compliance Checklist

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GDPR regulations empower individuals to control their personal data. Many countries use GDPR as a standard for their own laws. Businesses operating in multiple countries must adapt to various data protection laws, ensuring data flow and protection.

GDPR reflects Europe's strong stance on data privacy, especially as data breaches become common. While GDPR is broad and somewhat vague, it presents a significant compliance challenge, especially for small and medium-sized enterprises (SMEs).

The 173 regulations outlined in the GDPR policy can be cumbersome to read and understand. We've compiled those into 9 pointers GDPR compliance checklist and help you solve the issue of “how to become GDPR compliant?”.

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#1 Understand the Data You Process

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Article 9 of the GDPR, named "Processing of special categories of personal data," bans handling certain sensitive data unless certain conditions are fulfilled. This article is key to safeguard individuals' basic rights, especially their privacy and personal information in sensitive areas.

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The special categories of data under article 9 includes:

• Racial or Ethnic Origin: This is data about a person's race or ethnicity. It's protected by the GDPR to prevent discrimination.

• Political Opinions: This data shows a person's political beliefs. It's guarded because it can be misused in settings like jobs and government tracking.

• Religious or Philosophical Beliefs: Like political opinions, data on a person's religious or philosophical beliefs is protected to honor freedom of thought and expression.

• Trade Union Membership: This shows if a person is a member of a trade union. It's protected to avoid discrimination and uphold workers' rights.

• Genetic Data: This is data about a person's unique genetic traits. It can show health status, disease risk, and other traits, so it's classified as sensitive.

• Biometric Data: This is data used to uniquely identify a person, like fingerprints or facial recognition. It's considered sensitive because of the privacy risks if it's mishandled.

• Health Data: This is any data about a person's physical or mental health. It's sensitive because it's very personal.

• Data about a Person's Sex Life or Sexual Orientation: This data is private and protected to avoid discrimination and respect a person's dignity.

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#2 Know the Legal Basis for Processing Personal Data

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Article 6 of the GDPR outlines the legal bases for processing personal data, ensuring that any processing activity is lawful, fair, and transparent.

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Personal data can be legally processed if one of these conditions is met:

• Consent: The individual freely permits their data to be used for a specific purpose and can withdraw this anytime.

• Contractual necessity: The data is required to fulfill a contract the individual is involved in.

• Legal obligation: The data is needed to comply with laws applicable to the controller.

• Vital interests: The data is crucial to protect someone's life or health.

• Public interest or official authority: The data is required for a task in public interest or within the controller's official authority.

• Legitimate interests: The data is necessary for the controller's or a third party's reasonable interests, ensuring they don't override the individual's rights.

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#3 Consent Management for Processing of Personal Data

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Article 7 of the General Data Protection Regulation (GDPR) makes sure that using personal data is fair, clear, and legal if it's based on consent. More specifically, it says that a person can take back their consent anytime.

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Here's the GDPR consent guidelines:

• Right to Withdraw Consent: Withdrawing consent should be as easy as giving it.

• Effectiveness of Withdrawal: Data processing should stop after withdrawal unless another legal basis exists.

• Informing Data Subjects: Data subjects should be informed about their withdrawal rights.

• Documenting Consent: Organizations must keep records of consent and withdrawals to demonstrate GDPR compliance.

• Ease of Withdrawal: Withdrawing consent should be simple and straightforward.

• Impact on Services: Withdrawing consent shouldn't lead to penalties or hinder services that don't require the processed data.

• Autonomy of Data Subjects: Consent is not an indefinite approval for data processing.

• Pre-Checked Boxes: Consent cannot be implied through pre-ticked boxes or inaction.

• Public Authorities and Employers: Easy withdrawal is vital in situations with power imbalances.

• Interaction with Other Rights: The right to withdraw consent is part of broader GDPR rights.

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#4 Data Protection by Design and Default for Better Privacy

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Article 25 of the GDPR introduces data protection by design and default principles, which are essential for privacy in our digital world. It mandates that these measures should be integral to IT systems and business practices, and be a default setting to process only necessary data.

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Data Protection by Design

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"Data protection by design" mandates privacy and data protection in the development of new products, services, or processes involving personal data.

It requires integrating necessary safeguards into these processes to comply with GDPR and protect individual rights.

Key aspects of data protection by design are:

• Proactive Measures: Early implementation of data protection principles and safeguards in any design process.

• Privacy-Enhancing Technologies (PETs): PETs minimize personal data processing and enhance data security by integrating data protection measures.

• Minimization: Only necessary data for specific purposes should be processed.

• Transparency: Clear information about data processing should be provided to users.

• User-Friendly: Practices should allow easy exercise of users' data rights.

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Data Protection by Default

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"Data protection by default" implies processing only necessary personal data, considering the amount, extent of processing, storage duration, and accessibility.

Personal data shouldn't be accessible to many without the individual's intervention.

Key aspects include:

• Limited Data Collection: Only necessary data for the purpose is collected.

• Limited Access: Personal data isn't accessible without individual's authorization.

• Limited Processing: Data isn't processed beyond necessary purposes.

• Strong Security Measures: Robust security measures are implemented.

• Data Retention Policies: Clear policies for data retention and secure disposition after purpose fulfillment.

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#5 Implement Data Subject Rights

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Articles 15-22 of the GDPR ensure data subjects' rights to control their personal data.

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Here is the list of all the basic rights of individuals under GDPR:

• Right of Access (Article 15): Individuals can request their data and usage details.

• Right to Rectification (Article 16): Individuals can correct their data.

• Right to Erasure (Article 17): In some conditions, individuals can request data deletion.

• Right to Restriction of Processing (Article 18): Individuals can 'block' data use in certain cases.

• Right to Data Portability (Article 20): Individuals can receive their data in a common format and transfer it.

• Right to Object (Article 21): Individuals can object to data processing for specific purposes.

• Automated decision-making (Article 22): Individuals can request human intervention for automated decisions.

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#6 Appoint a Data Protection Officer (DPO) (if necessary)

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Under GDPR, some organizations must appoint a Data Protection Officer (DPO) for compliance with privacy laws. The DPO advises on GDPR compliance, oversees data protection strategies, and liaises with supervisory authorities.

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Here are all the details about DPO appointment as per GDPR:

• DPO Requirement: Required under GDPR for certain organizations handling large-scale sensitive data.

• Position: DPOs need independence, report to top management and handle data protection without instructions.

• Expertise: They should have relevant knowledge matching the organization's data complexity.

• Duties: DPOs manage GDPR compliance, training, DPIA advice, and more.

• Accessibility: DPO contact details must be public and accessible to all related parties.

• Independence: Their tasks must be executed independently and they shouldn't be penalized for their duties.

• Conflict of Interest: DPOs must avoid roles causing potential conflicts of interest.

• Resources: Organizations should provide DPOs with resources to perform their tasks and maintain knowledge.

• Involvement: DPOs should be involved in all data protection issues promptly.

• EU Representation: Non-EU controllers or processors need a DPO accessible to EU individuals and authorities.

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#7 Notify About Data Breach

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Articles 33 and 34 of the GDPR cover data breach notifications, ensuring timely reporting to minimize potential harm to data subjects.

Organizations need to follow the following procedures to notify about a data breach under GDPR

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Notification of a Personal Data Breach to the Supervisory Authority

• Timing: Controllers have 72 hours to report a breach, unless it doesn't risk individuals' rights and freedoms.

• Content: The report must detail the breach, DPO contact, likely consequences, and measures taken or planned to address and mitigate the breach.

• Documentation: All breaches must be documented for compliance with Article 33.

• Exceptions: No report is needed if the breach poses no risk to individuals' rights and freedoms.

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Communication of a Personal Data Breach to the Data Subject

• Data Subject Communication: Breaches risking people's rights should be reported promptly.

• Communication Content: Messages should be clear, including the breach's nature, potential impact, remedial actions, and contact details.

• Exception: Communication isn't necessary if adequate protection was applied, risk is no longer likely, or it requires disproportionate effort.

• Authority Consultation: If not communicated, the supervisory authority may require it, based on risk level.

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#8 Conduct Data Protection Impact Assessment (DPIA)

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Article 35 of the GDPR introduces the Data Protection Impact Assessment (DPIA). It aids in analyzing, identifying, and minimizing data protection risks, ensuring GDPR compliance, and protecting individuals' rights by assessing privacy impacts of data processing activities.

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Here is how you conduct a DPIA:

• DPIA Timing: Conduct a DPIA when new technologies processing may risk individuals' rights. This includes extensive automated evaluation or large-scale data processing.

• Consultation: The data protection officer (DPO) should advise during a DPIA.

• DPIA Contents:
  • A description of processing operations and their purposes.
  • Assessments of the processing's necessity, proportionality, and risks.
  • Proposed risk mitigation measures and GDPR compliance mechanisms.

• Data Subjects Consultation: Though not mandatory, controllers should consult data subjects for insights.

• Review and Update: Monitor and update the DPIA when significant changes occur in processing activities.

• Documentation and Compliance: Document DPIA outcomes and keep them as GDPR accountability records.

• Authority Consultation: If DPIA indicates high risk, consult supervisory authority before processing.

• International Consideration: For activities affecting multiple EU states, consider their impact and, if needed, consult multiple authorities.

• Enforcement and Penalties: Non-compliance with DPIA can result in significant GDPR fines, highlighting the importance of effective DPIAs.

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#9 Be Compliant With International Data Transfer Protocols

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GDPR's Chapter V details the rules for transferring personal data to foreign countries or international bodies, ensuring GDPR's protection level isn't compromised when data leaves the European Economic Area (EEA).

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Here are the key elements concerning international data transfer under GDPR:

• Adequacy Decision: The European Commission can determine if a non-EEA country provides sufficient data protection, allowing personal data transfer without further safeguards.

• Appropriate Safeguards: Transfers can occur without an adequacy decision, given that appropriate safeguards and data subject rights are enforceable, and legal remedies are available.

• Binding Corporate Rules (BCRs): BCRs permit multinational companies to transfer personal data within their organization.

• Derogations for Specific Situations: Data transfers to a third country can occur in specific situations, like explicit consent from the data subject or for public interest.

• Data Subject Rights: Data subjects must be informed about the transfer and potential risks due to lack of safeguards.

• Cooperation with Supervisory Authorities: The GDPR stresses cooperation with supervisory authorities for compliance.

• Transfers or Disclosures Not Authorized by EU Law: Any decision requiring data transfer may not be recognized unless based on an international agreement.

• International Cooperation for Data Protection: The GDPR promotes cooperation with third countries to improve data protection.

• Documentation and Record Keeping: All data transfers must be documented and recorded.

• Supervisory Authorities' Powers: Supervisory authorities can enforce compliance, including suspending data transfers.

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What are the Specific Exemptions for Processing of Personal Data Under GDPR?

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GDPR, protecting personal data within the EU, includes exemptions for specific situations to balance privacy rights with public interest, freedom of expression, and other vital interests.

Personal data processing exemptions under GDPR include:

• National Security and Defense: Exempt from GDPR to maintain national security.

• Law Enforcement: Exemptions for data processing during crime prevention, investigation, or prosecution.

• Public Interest: Exemption for tasks performed in public interest or official authority.

• Legal Compliance: If data processing is legally required, GDPR may not apply.

• Vital Interests: Exemption when data processing protects an individual's vital interests.

• Journalistic, Academic, Artistic, and Literary Purposes: Exemptions for these purposes to safeguard freedom of expression and information.

• Research and Statistics: Derogations for processing for public interest archiving, scientific or historical research, or statistical purposes.

• Legal Claims: Exemption for the establishment, exercise, or defense of legal claims.

• Personal or Household Activities: Exemption for processing by an individual for purely personal or household activity.

• Consent Withdrawal: Exemption when processing is based on consent, and consent is withdrawn.

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What is the Penalty for GDPR Non-Compliance?

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The General Data Protection Regulation (GDPR) mandates significant fines for non-compliance to enforce data protection.

The fines, based on the breach's severity, include:

• Two Tiers of Fines:
  • Up to €10 million or 2% of the previous year's total worldwide annual turnover for violations related to internal record-keeping, data security, DPIAs, DPO appointment, and cooperation with the supervisory authority.
  • Up to €20 million or 4% of the previous year's total worldwide annual turnover for infringements of processing principles, data subjects' rights, and data transfer to third countries or international organizations.

• Determining the Fine Amount: Factors considered include the infringement's nature, gravity, and duration; actions taken to mitigate damage; cooperation with the supervisory authority; any past infringements; the affected personal data categories; and adherence to approved codes of conduct.

• Specific Violations: Fines can be for violations such as insufficient customer consent for data processing, not having records in order, not notifying about a breach, or not conducting impact assessments.

• Daily Penalties: GDPR can impose daily penalties to ensure compliance.

• Payment and Enforcement: Fines are imposed by the respective EU member state's data protection authorities and can be contested in court. The fine revenue typically goes to the EU or the respective member state's general budget.

• Non-Monetary Sanctions: Non-compliance can also lead to orders to cease processing activities, data transfer bans, or public reprimands.

Read more about regulatory compliances and how to be compliant with regulatory laws.

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Let Us Take Care of Your GDPR Compliance Requirements

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GDPR compliance is essential for businesses, as it ensures personal data protection, builds customer trust, and enhances reputation.

It's a vital part of customer relationship management and business strategy, not just a legal obligation.

All businesses, regardless of size, are subject to substantial fines under the EU's stringent data protection and security laws. These laws can significantly impact daily operations.

Understanding GDPR best practices, while simultaneously monitoring and securing data to meet compliance requirements, can be challenging for many organizations.

This is particularly true for small and mid-market organizations, who often view compliance as a secondary priority.

With OptIQ, your GDPR compliance solutions are made easy, hassle-free, and instantaneous. Let us guide you through the process and ensure compliance within minutes using our compliance management toolkit.