Introduction

In today's digital age, vast amounts of personal data are collected, tracked, and harvested daily. From the apps you use to the websites you visit, trackers gather data about your location, online behavior, and interests. Data breaches at major cloud-hosted companies can compromise your personal information, leaving it vulnerable to misuse. Salesforce reports that 60% of customers feel they have no control over their data, up from 46% in 2019. To address these concerns, the European Union established the General Data Protection Regulation (GDPR) on May 25, 2018, to modernize data privacy and security laws for EU citizens.

Both cloud-hosted companies (processors) and their customers (data controllers) must comply with GDPR. Chapter 4 of the regulation specifically addresses the roles and responsibilities of controllers and processors, affecting IT and security teams in cloud environments that handle personal data. If you're a growing cloud-hosted company wondering if the GDPR applies to you, this comprehensive GDPR compliance checklist will help you understand what you need to do to comply.

Why Should You Comply With the GDPR?

Compliance with GDPR is crucial for several reasons:

1. Legal Requirements: The GDPR is a rigorous set of rules instituted by the European Commission to protect the data privacy and security of EU citizens. Companies that process personal data from EU citizens, regardless of their location, must comply with these regulations.

2. Penalties for Non-Compliance: Violations of GDPR can result in heavy fines ranging from €10 million to €20 million or 4% of your company's annual global turnover, whichever is higher. Non-compliance can lead to investigations by EU regulators and potential lawsuits.

3. Reputation and Trust: In an era of increasing public concern over data privacy, non-compliance can damage your company's reputation. Complying with GDPR demonstrates that your company is trustworthy and professional, reducing the risk of data breaches and enhancing customer confidence.

4. Operational Efficiency: Implementing GDPR compliance processes can improve your data handling practices, reduce the risk of breaches, and ensure that you are prepared to respond effectively to data-related incidents.

Difference Between Data Processor and Data Controller

The General Data Protection Regulation (GDPR) distinguishes between two key roles in data management: the data controller and the data processor. Understanding the difference between these roles is crucial for compliance with GDPR.

Data Controller

Definition: A data controller is an entity that determines the purposes and means of processing personal data. Essentially, the data controller decides why and how personal data should be processed.

Responsibilities:

• Data Collection: Decides what data is collected, the purpose for collecting it, and how long it is retained.

• Compliance: Ensures that the data processing complies with GDPR regulations.

• Individual Rights: Facilitates data subject rights, such as access, rectification, erasure, and data portability.

• Data Security: Implements appropriate technical and organizational measures to protect personal data.

Examples:

1. A Retail Company: A retail company collects and processes customer information for marketing purposes. It decides what data to collect, such as email addresses and purchase history, and how to use it.

2. Healthcare Provider: A hospital or clinic collects patient information for treatment and billing. It determines the types of data required, such as medical history and insurance details.

Data Processor

Definition: A data processor is an entity that processes personal data on behalf of the data controller. The data processor does not decide the purpose or means of data processing but acts under the instruction of the data controller.

Responsibilities:

• Processing Data: Processes data according to the instructions given by the data controller.

• Security Measures: Implements security measures to protect data during processing.

• Sub-processing: Must get authorization from the data controller before engaging another processor.

• Breach Notification: Notifies the data controller of any data breaches without undue delay.

Examples:

1. Cloud Service Provider: A company like Amazon Web Services (AWS) stores and manages data for various clients but does not decide how the data is used.

2. Payroll Company: A business that handles payroll processing for another company. It processes employee data but does not decide how this data should be used beyond payroll management.

Key Differences

1. Decision Making:

   • Data Controller: Determines why and how data is processed.

   • Data Processor: Processes data as instructed by the controller.

2. Accountability:

   • Data Controller: Primarily responsible for ensuring compliance with GDPR.

   • Data Processor: Responsible for implementing appropriate measures to protect data and follow the controller's instructions.

3. Data Subject Interaction:

   • Data Controller: Handles requests from data subjects (e.g., access, correction).

   • Data Processor: Does not typically interact with data subjects; instead, supports the controller in fulfilling requests.

4. Examples:

   • Data Controller: Retailers, healthcare providers, financial institutions.

   • Data Processor: IT service providers, cloud storage providers, payroll services.

GDPR Compliance Checklist (12 Steps to Follow)

1. Raise Awareness

Compliance with GDPR involves more than just top management or the Data Protection Officer (DPO). It requires a holistic approach, involving all employees. Raise awareness about data protection and security to foster a sense of responsibility across the organization. Identify areas that could cause non-compliance, such as the company's risk register, and ensure physical security for devices and office spaces. Control employee access to data and verify that third-party suppliers and subcontractors are also GDPR-compliant.

2. Keep a Record of Data Processing Flows

Understanding how customer data flows within your company is essential. Create records for each piece of data, detailing the departments involved, the type of data processed, the processing methods, and the individuals responsible. Regularly update this documentation to stay current with your data handling practices.

3. Review Current Privacy Notices

The GDPR mandates additional information in privacy notices. Update your privacy policy to clearly explain how you gather, use, and store personal data. Include details on data collection methods, lawful basis, data usage purposes, retention periods, and user rights. Ensure your cookie policy is detailed and up-to-date, using automated tools to conduct audits and generate declarations.

4. Check Your Rights for Individuals

Review your privacy and data protection procedures to ensure they address individuals' rights under GDPR. This includes the right to access information, correct mistakes, data portability, deletion of personal data, prevention of direct marketing, and the right to prevent automated decision-making and profiling.

5. Review and Update Procedures for Submitting Requests

Ensure your procedures for handling Subject Access Requests (SARs) comply with GDPR requirements. Develop a plan to handle requests within the required timescales, typically one month. Be prepared to provide additional information, such as data retention periods and rectification of inaccuracies, and create GDPR-compliant response letters.

6. Identify, Record, and Explain the Legitimate Basis

Review your data processing activities and identify the lawful basis for each. Document these bases and update your privacy notice accordingly. This is crucial because individuals' rights can vary depending on the lawful basis for processing their data.

7. Update Existing Consent

Ensure that your methods for obtaining consent are GDPR-compliant. Consent should be clear, specific, and easily understandable. Implement opt-out options and use automated tools to manage cookie consent banners and other consent-related processes.

8. Protect Children's Data

If your company processes children's data, put systems in place to verify ages and obtain parental consent when necessary. The GDPR provides special protections for children's data, particularly in the context of online services.

9. Detect, Report, and Investigate Data Breaches

Establish procedures to detect, report, and investigate data breaches. Conduct assessments to identify the types of data you hold and determine which breaches require notification. Notify relevant authorities within 72 hours of becoming aware of a breach, and inform affected individuals if there is a high risk to their rights and freedoms.

10. Adopt a Privacy and Data-Protection Mindset

Adopt a "privacy by design" approach. Conduct Data Protection Impact Assessments (DPIAs) for high-risk processing activities, use pseudonymization or anonymization techniques, and regularly delete obsolete data. Implement strong IT security measures, such as encryption, two-factor authentication, and regular vulnerability scans.

11. Assign a Data Protection Officer (DPO)

Designate a DPO to oversee data protection compliance. This role is mandatory for public authorities, companies that perform large-scale monitoring of individuals, or those processing special categories of data. Ensure your DPO is adequately trained and understands their responsibilities under GDPR.

12. Choose Your Lead Authority

If your company operates in multiple EU member states, choose a lead data protection supervisory authority. This authority will oversee your compliance efforts across the EU. Determine your "main establishment" based on where significant data processing decisions are made.

Conclusion

The GDPR is one of the most stringent privacy and security regulations globally, with 99 Articles spanning 88 pages. Compliance is mandatory for companies operating in Europe or targeting European customers. Non-compliance can result in severe penalties and damage to your company's reputation. Use this GDPR compliance checklist to guide your compliance efforts and demonstrate your commitment to data privacy and security.

By following these steps, your company can navigate the complexities of GDPR compliance, safeguard personal data, and build trust with your customers. For a streamlined and automated compliance process, consider using tools like Sprinto to ensure your company meets all GDPR requirements efficiently.

FAQ: GDPR Compliance Checklist

What are the 7 Principles of GDPR?

1. Lawfulness, Fairness, and Transparency: Personal data must be processed lawfully, fairly, and transparently.

2. Purpose Limitation: Data must be collected for specified, explicit, and legitimate purposes and not further processed in a manner that is incompatible with those purposes.

3. Data Minimization: Data collection should be limited to what is necessary for the intended purposes.

4. Accuracy: Personal data must be accurate and kept up to date.

5. Storage Limitation: Data should be retained only as long as necessary for the purposes for which it was collected.

6. Integrity and Confidentiality: Personal data must be processed securely to protect against unauthorized or unlawful processing and accidental loss, destruction, or damage.

7. Accountability: Data controllers are responsible for and must be able to demonstrate compliance with these principles.

What are the Goals of GDPR?

The GDPR aims to:

• Enhance data protection rights for individuals within the EU.

• Standardize data protection laws across the EU member states.

• Improve transparency and accountability in how personal data is used and stored.

• Provide individuals with greater control over their personal data.

• Ensure that organizations adopt robust data protection practices.

By understanding and implementing these principles and goals, your company can effectively navigate the requirements of GDPR and maintain compliance, safeguarding both your customers' data and your company's reputation.

If you need expert guidance on drafting a GDPR compliant Privacy Policy, don't hesitate to get in touch with us. www.intellectualpropertyattorney.pro