eCommerce Glossary
This e-commerce glossary features over 250 essential terms every online seller should know to succeed in digital commerce.
The General Data Protection Regulation (GDPR) is a comprehensive data protection law enacted by the European Union (EU) to regulate the processing of personal data and enhance the privacy rights of individuals within the EU and the European Economic Area (EEA). It sets guidelines for how organizations must protect the personal data of European citizens to ensure their privacy and security.
How Does the General Data Protection Regulation (GDPR) Work?
GDPR defines personal data broadly, encompassing any information that can be used to identify an individual, including but not limited to names, email addresses, identification numbers, and online identifiers like IP addresses. The regulation applies not only to organizations based in the EU but also to those outside the EU that offer goods or services to EU residents or monitor their behavior.
Under GDPR, organizations must adhere to several key principles when processing personal data, including lawfulness, fairness, transparency, purpose limitation, data minimization, accuracy, storage limitation, integrity, and confidentiality. They must obtain explicit consent from individuals before collecting their data and inform them about the purpose and use of their data.
Key Components of General Data Protection Regulation (GDPR)
- Scope: GDPR applies to all organizations that process personal data of individuals residing in the EU/EEA, regardless of the organization’s location.
- Data Subject Rights: GDPR grants individuals various rights over their personal data, such as the right to access, rectify, erase, and restrict processing of their data.
- Data Protection Principles: Organizations must adhere to principles of data protection, including lawful processing, transparency, purpose limitation, data minimization, accuracy, storage limitation, and integrity and confidentiality.
- Data Transfers: GDPR regulates the transfer of personal data outside the EU/EEA, requiring organizations to ensure adequate safeguards are in place for such transfers.
- Accountability and Compliance: Organizations must implement measures to demonstrate compliance with GDPR, including data protection policies, privacy impact assessments, and appointment of data protection officers (DPOs).
Benefits of General Data Protection Regulation (GDPR)
- Enhanced Privacy Rights: GDPR empowers individuals with greater control over their personal data, enhancing their privacy rights and fostering trust in organizations.
- Global Data Protection Standards: GDPR serves as a global benchmark for data protection, influencing privacy laws and regulations worldwide.
- Data Security: GDPR incentivizes organizations to implement robust data security measures to protect against data breaches and unauthorized access.
- Accountability and Responsibility: Organizations are held accountable for their data processing activities, promoting responsible data stewardship and ethical business practices.
Enforcement and Penalties:
Non-compliance with GDPR can result in significant fines and penalties imposed by data protection authorities within each EU member state, reaching up to €20 million or 4% of global annual turnover, whichever is higher.
The General Data Protection Regulation (GDPR) represents a significant step forward in data protection and privacy regulation, aiming to harmonize data protection laws across the EU and safeguard the privacy rights of individuals in the digital age.