Almost every industry is involved in the processing of personal data in one or the other way, for example, banks keep various personal details of their customers and process them. GDPR is a set of rules that lay down the guidelines about processing individuals’ data. All the firms across different industries are required to adopt methods, policies, and systems to comply with the General Data Protection Regulation.
This new law is designed to empower the European Union citizens about how their personal data is handled. Hence, this regulation will ensure that the EU residents have complete control over how their personal information is collected, processed and stored.
Because this law applies to all companies whether they reside inside or outside of the European Union, so it is time for organizations to make changes in their data handling practices for complying with this legislation.
Which industries have a greater impact of GDPR?
Although the General Data Protection Regulation will affect the most industries, there are some industries that will face more impact than others. Let’s examine which industries will have greater influence of the new law.
Industries offering services to individual customers
These industries are engaged in providing different services to individual customers and generally process the personal data of their customers on a large scale. Retail and finance industries are examples of these industries. In the retail business, companies collect data from individuals who share their information to get personalized products & offers to enhance their online & in-store shopping experiences, as well as to receive product recommendations.
On the other hand, financial service companies deal with highly sensitive data from their customers. But, with the introduction of GDPR, now every firm is required to strengthen their data security. Retail companies need to take explicit consent, in clear and easy language, from customers regarding processing their data. For this, these companies should avoid using any pre-ticked checkboxes for consent. Financial companies need to reassess their security measures and data collection procedures. And, take additional consent from customers when sharing their data with a third-party.
The automobile manufacturers collect and process their customers’ data to build customized products. Besides this, they collect personal details when customers buy their products and the same information is also accessible to different authorized dealers. Due to this huge data exposure, there are high chances of data security breaches in this industry. With GDPR being enforced, these are required to be more transparent about the data they collect from their customers, and why.
Industry offering marketing, process, system or business management services
There is a large number of companies that provide services based on process, business or system management. These companies work as data processors when assigned by their controller companies, which they have contracted with. So, they process the personal information of individuals provided by the companies which store or control that information. According to GDPR, both the data controller and processor need to be compliant with this law. Thus, data processor companies are also required to be compliant with the new data protection legislation. Cloud-based services, law services, platform-based services, marketing companies, analytics, and event management companies are some examples of these companies.
Although the introduction of General Data Protection Regulation is aimed to strengthen the data security of EU citizens, it will affect businesses on a global scale, because it may happen that your company gathers information of the European Union residents. So, it will influence the industries around the world. Let’s have a look how the industries will be affected globally.
Impact of GDPR on industries
Before this law, the companies inside or outside EU had little or no obligations about the safety of one’s data. And, this is the crucial subject where everyone has his/her own views and points. But, the world was shaken when the recent data breaches at Facebook came into light. This was the time to take a big step towards the safety of personal information collected by organizations from individuals. EU GDPR is one that big step which has impacted the businesses worldwide. It has affected the industries in the following ways:
- Processing employees’ personal data: As we know employees are the backbone of every organization, so every company has employees. And, these employees are the data subjects, which provide their personal details to companies they are employed with. General Data Protection Regulation requires that organizations should be transparent and accountable in processing their personal information.
- Processing data from clients: Like employees, there will be no business entity without customers or clients. And, companies can collect personal data and contact information from their clients for sales purposes. Processing of data, in this case, may include storing clients’ data, executing sales contacts, etc. They are also required to process the data in accordance with the new law.
- Appointment of DPO: Although organizations that process large volume of personal data would appoint a DPO (Data Protection Officer) to comply with GDPR, but the companies that process small amount of personal data should have a DPO too to demonstrate that they comply with the law.
Since this GDPR is now in effect, adjusting your business with some possible tweaks to comply with this law is important. Failing to adhere to this regulation implies a hefty fine of 20 million euros or 4% of global annual turnover (whichever is higher). Due to its influence across different industries, most companies around the world are affected by this rule.
Tom Hardy has hands-on experience as a digital marketing consultant. He currently works at Sparx IT Solutions: GDPR Compliance Solution Provider and offers exceptional website auditing services to prepare a business for GDPR readiness. Also, he writes informative blogs to let users know how much it is important to comply with GDPR for websites to get better data security.