The General Data Protection Regulation (GDPR) is a regulation in EU law on data protection and privacy in the EU and the European Economic Area (EEA). It was approved by the EU in April 2016 and came into force on 25th May 2018, replacing the UK’s 1984 Data Protection Act and the EU’s Data Protection Directive. The GDPR aims to give control to individuals over their personal data and to simplify the regulatory environment for international businesses by unifying regulation within the EU. It is directly binding and applicable to each member state of the EU.
This essay will discuss the GDPR’s provisions, including its scope, the data types it regulates, its supervisory authority, and the appointment of a data protection officer. It will also address the GDPR’s pros and cons and compare it with India’s Information Technology Act, 2000 (IT Act) and IT Rules.
Provisions of GDPR
The GDPR is a regulation with 11 chapters containing 99 articles. Under the terms of the GDPR, organizations have to ensure that personal data is gathered legally and under strict conditions. Those who collect and manage data are obliged to protect it from misuse and exploitation, as well as respect the rights of data owners. GDPR also provides additional rights to people who want their personal data to be deleted, provided there are no grounds for retaining it (Right to Erasure). GDPR also makes reporting obligations and enforcement stronger, and data breaches are to be reported within 72 hours. Failure to comply with GDPR rules could result in a fine of up to 4% of global turnover or 20 million euros, whichever is greater.
Scope of GDPR
GDPR applies to any organization operating within the European Union, as well as any organization outside of the EU that offers goods and services to customers or businesses in the EU. Therefore, GDPR has global implications. There are two different types of data handlers the legislation applies to – Processors and Controllers. Controllers are individuals or bodies that determine the purposes and means of processing personal data, while processors process personal data on behalf of the controller. Controllers must ensure that all contracts with processors are in compliance with GDPR.
Data Types Regulated by GDPR
Personal data is data that relates to an identifiable living individual and includes names, email IDs, ID card numbers, and IP addresses. It also includes sensitive personal data such as genetic data and biometric data, which could be processed to uniquely identify an individual.
Supervisory Authority under GDPR
Under GDPR, all member states must appoint a supervisory authority. It is an independent public authority established in each member state to ensure the implementation and compliance with GDPR.
Data Protection Officer
GDPR legislation states that Data Protection Officers (DPO) must be appointed by some companies, referring to public authorities and companies that process large amounts of data. The controller and the processor ensure that the DPO is involved properly and in a timely manner in all issues that relate to the protection of personal data. The appointed DPO must have a high level of expert knowledge of the legislation, practices, and GDPR compliance.
Pros and Cons of GDPR
The GDPR acts as a guide to achieve a higher degree of data security. To comply with GDPR rules, companies doing business in the EU or serving EU customers have increased their cybersecurity status. With improved cybersecurity, clients put their trust in companies and share their data knowing that they are doing so in a secure environment.
GDPR provides maximum importance to consumers’ consent. However, there are also concerns about overregulation when it comes to GDPR. Companies that fail to comply with GDPR norms face huge penalties of up to 4% of the global turnover or 20 million euros, whichever is greater. GDPR increases the complexity of online businesses, and every business needs to be compliant, irrespective of their turnover.
Important Points:
🔍 The General Data Protection Regulation (GDPR) is a Regulation in EU law on data protection and privacy in the EU and EEA.
🔍 It came into force on 25th May 2018, replacing the UK’s 1984 Data Protection Act and the EU’s Data Protection Directive.
🔍 The GDPR’s primary objective is to give control to individuals over their personal data and simplify the regulatory environment for international business by unifying the regulation within the EU.
🔍 GDPR provides additional rights to people who want their personal data to get deleted, provided there are no grounds for retaining it (Right to Erasure).
🔍 GDPR applies to any organization operating within the European Union, as well as any organization outside of the EU which offers goods and services to customers or businesses in the EU.
🔍 There are two different types of data handlers the legislation applies to – Processors and Controllers.
🔍 Personal data is data that relates to an identifiable living individual, including names, e-mail IDs, ID card numbers, and IP addresses.
🔍 GDPR legislation says that Data Protection Officers (DPO) must be appointed by some companies.
🔍 Supervisory Authority under GDPR is an independent public authority which is established in each member state to ensure the implementation and compliance with the GDPR.
🔍 Pros of GDPR include achieving a higher degree of data security, improved cybersecurity status for companies, and clients trusting companies with their data.
🔍 Cons of GDPR include overregulation, the penalty for non-compliance, and complexity in online business.
🔍 In India, the Information Technology Act, 2000 (IT Act) and IT Rules deal with online data protection.
🔍 Both the IT Act and GDPR have the objective of controlling and regulating the transferring of data for e-commerce, but GDPR is more concerned with safeguarding the rights of EU citizens.
🔍 Data integrity, protection from unauthorized processing, accountability, fairness, and transparency are among the principles stated in the GDPR but not included in the IT Act.
🔍 GDPR defines consent, specifies conditions for children’s consent, and requires breach notifications to be made within 72 hours.
🔍 Companies need to comply with GDPR irrespective of their turnover.
🔍 Failure to comply with the GDPR rules could result in a fine of up to 4% of global turnover or 20 million euros, whichever is greater.
Why In News
The General Data Protection Regulation (GDPR) has been in effect since May 2018 and has had a profound impact on how organizations collect, use, and process personal data in the EU and EEA. Failure to comply with GDPR can result in significant fines, reputation damage, and loss of trust from customers and stakeholders.
MCQs about GDPR and India’s IT Act
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Under the GDPR, who are the two different types of data handlers the legislation applies to?
A. Public authorities and data controllers
B. Data processors and data controllers
C. Data analysts and data collectors
D. Data scientists and data engineers
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What is the primary objective of the GDPR?
A. To provide control to individuals over their personal data and simplify the regulatory environment for businesses
B. To monitor online businesses and ensure that they comply with cybersecurity norms
C. To create a uniform data protection law globally
D. To eliminate the use of personal data by companies for marketing purposes
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What is the maximum penalty for companies that fail to comply with GDPR rules?
A. 2% of global turnover or 10 million euros
B. 4% of global turnover or 20 million euros
C. 1% of global turnover or 5 million euros
D. 5% of global turnover or 30 million euros
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What is the role of a Data Protection Officer (DPO) under the GDPR?
A. Ensuring the implementation and compliance with GDPR
B. Processing personal data on behalf of the controller
C. Determining the purposes and means of processing personal data
D. Involvement in issues that relate to the protection of personal data
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