The regulation imposes strict rules for companies on the way how they collect, reserve and control personal data of EU citizens. Since GDPR will arrive with significant changes, organisations need to be extremely aware of the impact the new regime will have.
Any company which holds any type of data of European Union is viable under GDPR. So, what about those US based Companies that have no business operations in EU member states? Are they needed to worry about complying and implementing changes with coming EU General Data Protection Regulation?
The answer is big YES! If those organizations market their products/services over the web and if the data subjects, they have to deal with Article 3 of the GDPR Data Protection.
- If you collect any type of behavioural or personal data of EU citizens, even if you are out of the boundaries of European Union- you are subjected to the requirements of GDPR.
- In case your company just collects data as part of marketing or programmatic campaigns (which is a prime operation of American Companies) then they have to protect the personal data according to GDPR way.
With GDPR Compliance, your company needs to revise the internal processes, procedures and policies to meet the demands of EU General Data Protection Regulation.
In case you are not familiar what exactly GDPR is, why it is needed and what companies fall under this regulation, then you can go through our previous article which will clear your vision completely.
Read here: Everything You Need to Know About GDPR
Impact of GDPR
GDPR is on the edge of its commencement, well we hope that various multinational corporations are on the way to comply with the General Data Protection Regulation. We have listed all its effects on organizations who have prepared or taking steps towards becoming GDPR Compliant.
- If businesses desire to operate in any EU Member states it has to be a GDPR Compliant before EU General Data Protection Regulation enactment on May 25.
- According to recent findings, even when we are just days away from GDPR Data Protection commencement, Organisations are still facing issues to meet its requirements.
- America’s slow response towards European Regulation, studies shows that 53% of business believe that GDPR will not affect their organizations. According to them they conjecture that their actions doesn’t violate EU General Data Protection Regulation and they don’t expect their business to involve European Citizen’s personal data.
- GDPR continue to be a significant challenge for UK, based on government study only 25% of businesses have an idea about this regulation and are serious about taking strong steps towards becoming a GDPR Compliant.
- Several European businesses have appointed Data Protection Officers (DPO’s) already:
- To train the employees about the importance of compliance requirements.
- DPO becomes a bridge between GDPR Supervisory Authorities and the organization.
- They monitor data protection methods and maintain records of data processing activities.
- Their main duty is to inform & connect with users about how their data is being used
- Educating consumers about their right to get their data deleted anytime they want.
- Recent finding shows that nearly half of the UK organizations will likely to face fines, because of not being prepared for GDPR.
- Despite the time is flying towards GDPR Data Protection deadline, researchers believe that only 36% of organizations will be fully compliant.
- Those companies who will detected not compiled under GDPR, will be penalised with fine of 4% of Company’s turnover (which is quite a big amount) or up to €20 million- whichever be higher.
- On the other side, only 20% of US Consumers believe that companies will maintain & protect their data privacy.
So, what Businesses are doing to fulfil the requirement of GDPR?
In response to General Data Protection Regulation, rather than just adapting the regulations & norms, companies are just getting rid of the personal data they store & maintain. 70% are limiting the usage of personal data of EU citizens and rest are limiting the number of employees who access personal data.
There is totally a mixed picture when it comes to organizations being largely or completely compiled on times, as countries like Spain (54%), Netherlands (51%), Sweden (33%) and Germany (51%) have to work a lot to meet the 25th May, target date.
25TH May, 18 deadline should not be treated as an end to General Data Protection Regulation. Companies who are fully complied, will have to constantly update their system according to coming guidelines & announcements. Businesses need to understand its importance and make sure their data management system adheres to approaching directives.