People are becoming more and more aware of the fact that their personal data do have a value and that their privacy is being compromised in the digital era of interest-based marketing. In May 2018, General Data Protection Regulation (GDPR) was implemented by the EU to protect the personal data of EU citizens from data breaches and other forms of misuse, and to hold enterprises that control or process personal data accountable for misuse occurring through their negligence. GDPR not only applies to organisations located within the EU but also applies to organisations located outside of the EU if they offer goods or services or monitor the behaviour of EU data subjects. Companies should take their customers’ data privacy seriously, no matter what country they’re in.
Changing DATA World
GDPR has changed everything from the way data collection takes place to the way corporate databases are designed and used. It also has potentially changed the way research and development takes place, and will impact cybersecurity practices, as well as introducing a practical array of challenges revolving around sites and repositories where groups share comments, information, and other data.
GDPR includes changes that will have a meaningful impact on how businesses deal with personal data. Briefly, these conditions are: Data must be processed in a transparent fashion (consent must be given), collected and maintained for a specific purpose in a secure manner. After the specific purpose is fulfilled, it must be deleted.
While the U.S. and a number of other countries have adopted an opt-out approach to data collection – essentially, a consumer must instruct a company if he or she doesn’t want his or her data to be used or shared in certain ways – Europe has implemented a more restrictive opt-in approach. However, GDPR takes this concept to a new and previously untested level. Besides giving consumers near-total control of their data, they can have their data removed from a database or online source at any time and, for those who believe they have been wronged, seek an investigation and file a lawsuit.
Pros of GDPR
While talking about the impact that GDPR has on business operations, one has to keep in mind that it impacts customers by increasing their confidence and comfort while using the services, and loyalty to a brand.
Users and customers value their privacy and their confidence can be irrevocably damaged if a breach of data does occur and their information is made available unknowingly. On the opposite end of this spectrum, lies a customer that is more than willing to share their private information as they believe their data is being stored and used in line with GDPR. Complying with GDPR, if an organisation can become a trusted holder of information, their odds in creating a long-lasting and loyal relationship with a customer will improve significantly.
GDPR has directly impacted data privacy and security standards while also indirectly encouraging organisations to develop and improve their cybersecurity measures, limiting the risks of any potential data breach.
Users and customers are far more likely to accept the mandatory opt-in from organisations and businesses they are interested in.
Cons of GDPR
For an organisation to be GDPR compliant, they have to revamp certain aspects of their operations to keep up with the regulatory demands. For carrying out business with the EU in any capacity, they need to be GDPR compliant. GDPR allows consumers to remove themselves from a database or online source at any time; companies violating GDPR face fines of up to 4% of their global annual revenues.
Depending on the quantity of EU Citizen data being processed by an organisation, the cost of achieving compliance can vary from hundreds of Euro to tens of thousands. The cost of GDPR implementation can accumulate with unforeseen salaries being added to the payroll.
The new consent form allows customers to control if and how they are contacted by an organisation, empowering them with the full control of who and how they share their data. The continuous presence of opting-in may discourage some customers from registering as they delay the requirement of opting-in until they are absolutely certain of their interest.
GDPR allows the users to discover who has their data, why they have it, where it’s stored and who is accessing it. Companies are voicing concerns that GDPR could constrain innovation by limiting how data is handled in apps, databases, and online services and how data is used for advertising and other purposes. The issue could impact autonomous vehicles, robotics, and a variety of systems that rely on AI. Organizations may ultimately need to keep two separate databases – one for the EU and one for elsewhere or find ways to differentiate records in databases.
Depending on who opts in, who opts out, and what data appears or disappears from a database or other source, the situation could become even more problematic.
To sum-up, GDPR is about the people’s ability to exercise their own free will about their life. In the end, it is vital to strike a balance between privacy and laws.