Operating a tech or retail business which requires the collection of personal information from individuals within the EU or UK requires careful consideration of compliance regulations. This is a guide to data protection regulations in the EU and UK.
Data protection is of particular concern for businesses, especially those operating in the technology and retail sectors. All tech businesses and the majority of retail businesses rely on the processing of customer data to run smoothly. With the advent of AI and increasingly privacy-intrusive marketing techniques, plus the increasing prevalence of cyber threats and data breaches, it is essential for every business owner to understand and comply with the data protection regulations in place when processing the data of individuals within the EU and the UK.
Both the EU and the UK have established comprehensive compliance regulations to safeguard individuals’ personal data and ensure its proper handling. Tech companies must prioritize privacy by design and default, while retail companies must ensure transparent data handling practices and secure processing of critical data such as those pertaining to payments or health. Aphaia has been helping ordinary business owners navigate the complex world of data protection through our Outsourced DPO services, so that these businesses can not only protect individuals’ personal data but also build trust with their customers and avoid severe fines.
The GDPR is the primary data protection regulation in the EU, requiring businesses to comply with principles such as lawfulness, fairness, transparency, data minimization, accuracy, storage limitation, and security measures when processing personal data.
The GDPR, which came into effect in May 2018, is the primary data protection regulation within the EU. Its objective is to harmonize data protection laws across member states and strengthen individuals’ rights regarding their personal data. The regulation applies to all businesses processing personal data of EU citizens, regardless of their location and those processing personal data in the context of an EU establishment. Tech and retail companies, especially those processing large volumes of customer data, must ensure they have in place a clear action plan to comply with the GDPR’s requirements both to avoid fines and to avoid public embarrassment.
Businesses must adhere to certain principles when processing personal data in order to comply with the GDPR. These principles include lawfulness, fairness, and transparency towards their customers. Personal data should only be collected for specific purposes and not used for any other unintended purposes. Data minimization is also important under the GDPR, as businesses should only collect the necessary amount of personal data. Accuracy of personal data must be ensured, and any inaccuracies should be rectified. Personal data should not be stored for longer than necessary, and appropriate security measures must be implemented to protect the data from unauthorized access or loss.
Businesses are responsible for demonstrating their compliance with the principles of the GDPR, maintaining records of processing activities, and conducting data protection impact assessments. Therefore a keen understanding of these principles is required by whoever is charged with demonstrating compliance. Many businesses opt for employing the services of data protection professionals to fill the role of outsourced data protection officers (DPOs) to ensure that their business is compliant. Non-compliance with the GDPR can result in severe penalties, including fines of up to 4% of the company’s global annual turnover.
The Data Protection Act 2018 (DPA) requires tech and retail companies to implement measures to protect personal data, ensuring fair and lawful processing, transparency, valid consent, and individual rights.
The UK implemented the Data Protection Act 2018 (DPA) to align its data protection laws with the GDPR. The DPA provides further details and exemptions specific to the UK context. It establishes the Information Commissioner’s Office (ICO) as the regulatory authority responsible for enforcing data protection laws in the country. Tech and retail companies operating in the UK must comply with both the GDPR, after Brexit still applicable as “the UK GDPR”, as well as the DPA. This includes implementing appropriate technical and organizational measures to protect personal data, conducting data protection impact assessments, appointing DPOs, and notifying the ICO of data breaches within 72 hours of becoming aware of the breach.
Businesses must ensure that personal data is processed in a fair and lawful manner, with transparency and a valid legal basis. Individuals have the right to access their personal data and request corrections or deletions if necessary. They also have the right to object to the processing of their data under certain circumstances. Consent is a crucial aspect, and when companies rely on it, it must be freely given, specific, informed, and unambiguous in order to be considered valid. Businesses should obtain consent before processing personal data, and individuals have the right to withdraw consent at any time.
The Spanish Data Protection and Digital Rights Act (LOPDGDD)
The purpose of the Spanish Data Protection and Digital Rights Act 3/2018 (LOPDGDD) is twofold: on the one hand, it updated the Spanish national data protection framework to the GDPR and provided further specifications and restrictions and on the other hand, it created a new charter of digital rights, including, among others, provisions on the right to digital education, the protection of children, right to privacy in the workplace in relation to the use of CCTV and the use of tracking systems.
Accordingly, any business subject to the LOPDGDD will need to comply not only with the GDPR requirements but also with the digital rights. It is important to note that some of these rights may be especially relevant for the tech and retail industries, as for example the right to be forgotten on social media platforms and the protection of children. The latter is also particularly relevant for businesses operating in the UK, since they will need to comply with the Children Code.
Tech companies handling personal data are tasked with complying with data protection regulations, including integrating privacy measures into their products and systems, obtaining user consent for data processing activities, and implementing safeguards for cross-border data transfers.
Tech companies, handling vast amounts of personal data, face unique challenges in complying with data protection regulations. One such challenge is the concept of “privacy by design and default” introduced by the GDPR. This principle requires that companies integrate privacy measures into their products and systems from the onset. Tech companies must ensure that privacy settings are set to the highest level by default and that user consent is obtained for all data processing activities that require it, for example for the use of not strictly necessary cookies.
Another significant consideration for tech companies is the cross-border transfer of personal data. The GDPR restricts transferring personal data to countries outside the EU/EEA that do not provide an adequate level of data protection. Tech companies operating globally must implement appropriate safeguards such as standard contractual clauses to ensure compliance with these restrictions.
Data protection regulations in the retail sector have a significant impact on customer relationship management, targeted marketing, and e-commerce.
In the retail sector, data protection regulations have a profound impact on customer relationship management, targeted marketing, and e-commerce activities. Retailers may require explicit consent from customers in order to collect and process their personal data outside what is strictly necessary for the performance of the contract with them. They must also provide clear information on how the data will be used and allow customers to exercise their rights, including the right to access, rectify, or erase their data.
It is imperative that businesses put processes in place to be able to fulfill those requests easily as the law requires that businesses not only allow customers to exercise those rights, but requests of this nature from customers also need to be handled within the required timeframe. In addition, retailers must ensure the secure transmission and storage of personal data, especially in relation to online payments. Non-compliance can lead to significant financial penalties and reputational damage.
If you are a business looking to achieve compliance with data protection regulations, Aphaia can help. Our team of experts can provide tailored solutions to help you achieve compliance and improve your data protection practices. Contact Aphaia today to find out more.
