GDPR is the new regulation that took effect on May 25, 2018. It’s an acronym for General Data Protection Regulation, and it affects all business entities, in particular GDPR effects startups that collect data from their customers or third parties. As a result of this post-election update to the United States privacy laws, many people have begun to think about how they’ll handle their personal data in the future. Especially startup companies. It’s important for them to understand what is GDPR as GDPR is the new global standard for protecting customer data and expanding personal information collection and usage transparency. Let’s clear up any lingering questions you may have about this new regulation and how it affects your startups international expansion plans.
What is GDPR?
GDPR stands for General Data Protection Regulation. This new regulation affects all companies collecting data from people via a website or app. The regulation covers a broad range of data subjects, including people, businesses, and even non-EU countries’ data subjects.
Why is it Important?
GDPR is a regulation that creates new legal requirements for companies to follow. This includes requiring companies to have a “legal basis” for collecting data, to offer transparency around data collection, and to be transparent about how they use data. These changes will require startups to change the way they manage and store customer data.
What are the key aspects of the law?
GDPR applies to any person or entity that collects data. This includes small businesses, large companies, startups, and even government entities. The main key aspects of GDPR law is:
Consent: Companies will need to obtain “oﬀer” for providing data.
Data integrity: The accuracy of data is essential.
Safeguards: Providers are required to protect data.
Accountability: Responsible use of data is essential.
Who is Subject to GDPR?
EU citizens are the ones who stand to benefit from the GDPR. These regulations are meant to protect data privacy and create a level of consistency across member states. It’s still unclear how these regulations will affect businesses outside of the EU. A company may want to conduct a risk assessment to determine how they’ll handle compliance with GDPR guidelines if a company operates in multiple countries.
What is GDPR and What Does it Mean For SaaS Contracts?
The small business implications of GDPR
One of the biggest impacts the law will have on businesses is the higher cost of compliance. Before the deadline, the majority of businesses were still in a transitional period, and those that were fully compliant were the minority. Because GDPR is a new standard that requires huge changes across all business processes, it’ll cost any startup millions of dollars to make the transition. Now, however, it’s expected that with the passing of the deadline, every company will need to fully comply to protect their customers.
How Does it Affect Startup Companies?
The requirements of GDPR are compliance-based, meaning that organizations already compliant with existing privacy laws won’t be affected by the regulations. However, startups that are just getting started may find that GDPR complicates their operations. Now that GDPR regulations are in place, startups will have to conduct a risk assessment to determine how they’ll comply with these new guidelines. Startups will also have to hire a data protection officer and create a comprehensive data protection policy that outlines how they will collect, store, and manage customer data.
Startup companies are particularly affected by the law in a few important ways. First, startups will need to evaluate and update their data management processes. If you have a centralized data management process, GDPR requires that you abide by that process. Second, GDPR requires transparent data management. This means being transparent about how you collect data, what you do with the data, and why you’re collecting the data. Third, GDPR requires data protection by design. This means that you design your products and services with data protection in mind from the beginning.
What is it & How to Comply With GDPR
The best way to comply with GDPR is to start early. The biggest changes are in effect so it’s important to start now. There are some things you can do to prepare for GDPR. First, assess your organization and see where you need to make changes to comply with GDPR. Next, look for potential partners/consumers that can provide insight about your company’s data management policies. Once you identify areas that need to be changed, start working on making those changes as soon as possible.
GDPR is a regulation that creates new legal requirements for companies to follow. This includes requiring companies to have a “legal basis” for collecting data, to offer transparency around data collection and to be transparent about how they use data. Once you understand the new requirements, it’s important to start preparing now. You need to prepare for GDPR, including assessing where you need to make changes to comply with the law, finding potential partners to assess your data management policies, and starting to make those changes as soon as possible.
It is a big change for businesses, especially those in the startup space. Luckily, most of the heavy lifting has already been done, and the majority of businesses will be in full compliance by the end of the year. The good news is that compliance has significant benefits, such as the ability to attract and retain higher-quality customers. Now that you know what GDPR is and how it affects startup companies, it’s time to explore the impact it has on your company. Start reading up on this regulation and its implications for your company today.