E-commerce merchants should now be familiar with the General Data Protection Regulation or GDPR. This law puts more focuse on personal data protection and levies stringent penalties for non-compliance. It is considered as the most comprehensive data privacy law and can affect firms which operate or have customers in Europe.
The GDPR empowers consumers in the region, acknowledging them to be the owner of their data. It thus gives them the right to review, change and restrict processing of their data. Moreover, companies are required to inform other organizations such as Google to remove copies of the personal data of their customers.
How GDPR changes things
With the new law in effect, various measures will be employed to ensure that consumers will be protected against data mishandling. Sensitive data like religion, political beliefs, sexual orientation, and race are to be protected. Companies that collect data on a large scale will also need to have their own data protection officer. Customers must also be informed of data breaches within 72 hours after the incident.
High penalties, meanwhile, will be meted for non-compliance. Firms that don’t comply with the law will be meted with high penalties with fines as high as 4 percent of annual revenue. Simply put, the fees are high enough to affect a firm and even run it out of business.
How GDPR will affect online businesses
The GDPR will have a huge impact on companies that operate or have customers in Europe. For one, firms will have to review their processes and ensure that the online data they collect is secure. It will also become imperative for firms to create a process for ensuring data transparency.
Online firms will also have to document their data activity with the GDPR in full effect. Companies will also have to inform their consumer of what they will do with their data, including who is collecting, viewing and storing it.