GDPR Сompliance:
US Сompanies Checklist

GDPR Compliance: What US Companies Should Know

The General Data Protection Regulation (GDPR) applies to any organization processing the personal data of individuals residing in the European Economic Area (EEA), regardless of the organization’s location. This means that even US companies can be subject to GDPR regulations if they handle the data of EU citizens. Here’s a checklist to help US companies ensure GDPR compliance.

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GDPR Compliance Checklist: Data Subjects’ Rights

• Awareness and Transparency: You must inform data subjects (EU citizens) about how you collect, use, and store their personal data. Provide a clear and concise privacy policy that outlines these details.
• Right to Access: Allow data subjects to request access to their personal data you hold. You must provide a copy of the data in a structured, commonly used, and machine-readable format (e.g., CSV, JSON).
• Right to Rectification: Enable data subjects to request correction of inaccurate or incomplete personal data.
• Right to Erasure (Right to be Forgotten): Allow data subjects to request deletion of their personal data under certain circumstances.
• Right to Restriction of Processing: Data subjects have the right to request restriction of processing of their personal data, meaning you can only store it but not use it further.
• Right to Data Portability: Provide data subjects with the right to receive their personal data in a structured and commonly used format, allowing them to transmit it to another controller.
• Right to Object: Allow data subjects to object to the processing of their personal data for direct marketing purposes or on grounds relating to their particular situation.

GDPR Compliance Checklist: Data Processing and Security

• Lawful Basis for Processing: Identify the lawful basis for processing personal data, such as consent, contract fulfillment, legal obligation, or vital interests.
• Data Minimization: Collect and process only the minimum amount of personal data necessary for the specific purpose.
• Data Security: Implement appropriate technical and organizational measures to protect personal data from unauthorized access, accidental loss, or destruction.
• Data Breach Notification: In case of a personal data breach, notify the relevant supervisory authority and affected data subjects within a designated time frame.
• Data Processing Agreements: If you use data processors (third-party service providers) to handle personal data, ensure they comply with GDPR requirements through data processing agreements.
• Impact Assessments (DPIAs): Conduct Data Protection Impact Assessments (DPIAs) when processing poses a high risk to the rights and freedoms of data subjects.

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GDPR Compliance Checklist: Additional Considerations

If you target EU citizens in your marketing campaigns, ensure you obtain their explicit consent for receiving marketing communications.

When transferring personal data outside the EEA, ensure adequate safeguards are in place, such as standard contractual clauses approved by the European Commission.

If you don’t have an establishment in the EU but offer goods or services to data subjects in the EU, you might need to appoint a representative within the EU.

Who Needs to Worry About GDPR Compliance for US Companies?

The General Data Protection Regulation (GDPR) is a regulation in EU law on data protection and privacy in the European Union (EU). While it originated within the EU, it has implications for businesses around the world, including those located in the United States.

So, the question remains: Does your US business need to worry about GDPR compliance?

The answer depends on whether your business interacts with or handles the personal data of individuals residing in the European Economic Area (EEA). Here’s a breakdown to help you determine if GDPR applies to you:

You Do Need to Worry About GDPR Compliance Checklist if:

• Your business directly offers goods or services to customers in the EEA. (e.g., e-commerce website targeting EU customers)
• You monitor the behavior of individuals located in the EEA on your website or app, even if you don’t sell them anything directly. (e.g., using analytics tools that track user behavior from EU)
• You handle the personal data of EU citizens for any reason, even if it’s on behalf of another organization. (e.g., a US company processing customer data for an EU-based client)

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You Likely Don’t Need to Worry About GDPR Compliance Checklist if:

• Your business has no interaction with the EEA and doesn’t handle any personal data from EU citizens.
• You only deal with anonymized data that cannot be traced back to specific individuals.

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Why Should You Care About GDPR Compliance (Even if You’re Unsure)?

The potential consequences of non-compliance with GDPR can be severe. Fines for violations can be hefty, reaching up to €20 million or 4% of your annual global turnover (whichever is higher). Additionally, there can be reputational damage and loss of customer trust if your data handling practices are found to be non-compliant.

If you’re unsure about whether GDPR applies to your business, it’s always best to err on the side of caution. Here are some steps you can take:

• Review your data collection practices: Identify what personal data you collect and from whom.
• Assess your GDPR risk: Evaluate the likelihood and potential impact of a data breach involving EU citizen data.
• Consult with a privacy professional: Seek guidance from a lawyer or consultant specializing in data privacy regulations.

By being proactive and taking steps towards GDPR compliance, US companies can operate with confidence in the global marketplace and avoid potential penalties and reputational risks.

Here are some useful resources:

European Commission’s page on GDPR for businesses

US Department of Commerce’s GDPR for US businesses page

Understanding GDPR: Key Terms Explained

The General Data Protection Regulation (GDPR) can feel like a complex labyrinth, but understanding its key terms equips you to navigate it effectively. Here’s a breakdown of some essential concepts of GDPR compliance for US companies.

What Is Personal Data?

Imagine a digital fingerprint. Personal data encompasses any information that can be used to identify a living individual, either directly (like names and ID numbers) or indirectly (through a combination of details such as location, online activity, or even physical attributes). This data can range from the seemingly mundane (email addresses and phone numbers) to the highly sensitive (health information and financial records).

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Who Are Data Subjects and Data Controllers?

The GDPR puts the power of personal data back in the hands of individuals. A data subject is the person to whom the personal data belongs. The regulation empowers these individuals with a range of rights, allowing them greater control over their information and how it’s used.

Think of the data controller as the architect, designing the purpose and methods for processing personal data. This could be your company if you collect customer information for marketing campaigns or online transactions. The data controller is ultimately responsible for ensuring GDPR compliance throughout the entire data processing lifecycle.

What Is the Role of a Data Processor?

Not all data handling is done in-house. The GDPR recognizes data processors – third-party organizations entrusted with processing personal data on behalf of the data controller. For instance, a cloud storage provider you use to store customer data would be considered a data processor. The data controller remains accountable for ensuring the processor adheres to GDPR regulations.

How to Define a Lawful Basis for Processing?

The GDPR doesn’t allow organizations to collect and process personal data willy-nilly. There must be a legitimate reason, a lawful basis, for any data processing activity. These reasons can include obtaining clear and informed consent from the data subject, fulfilling a contractual obligation (like processing payment information for a purchase), complying with legal requirements, or protecting vital interests (such as preventing fraud).

What Is Data Minimization?

The GDPR enforces a principle of data efficiency. Imagine a cluttered desk overflowing with unnecessary paperwork. Data minimization discourages this approach. It dictates that organizations should only collect and process the minimum amount of personal data necessary for a specific purpose. Don’t collect data «just in case» – gather only what you truly need to achieve your objective.

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What Is Right to Access?

Transparency is a cornerstone of the GDPR. The right to access empowers data subjects to request a copy of their personal data held by an organization. This allows them to verify the accuracy of the information and understand how it’s being used. Imagine being able to walk into a library and request a detailed list of everything they have on file about you – the GDPR grants individuals a similar level of control over their personal data.

How Different Is Right to Erasure from Right to be Forgotten?

The GDPR empowers individuals with a powerful tool – the right to erasure, also known as the right to be forgotten. Under certain circumstances, data subjects can request that their personal data be deleted. This right allows them greater control over their online footprint and the ability to move on from past actions, provided specific legal requirements are met.

Wrapping Things Up

This checklist is not exhaustive, and legal advice is recommended for specific situations. The complexity of GDPR compliance can vary depending on the nature and volume of data you process. It’s crucial to stay updated on the evolving regulations and implement appropriate measures to ensure you are GDPR compliant.

By following this GDPR compliance checklist, US companies can navigate the regulations with confidence. Remember, staying informed and taking proactive steps to protect EU citizen data is crucial.

Don’t let this GDPR compliance become a headache! Use our GDPR compliance checklist for US companies as a starting point, and explore the provided resources for further guidance. By prioritizing data privacy, you can build trust with your customers and maintain a strong presence in the global market.