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GDPR Gets Real

By Jason Straight

After years of discussion, debate, lobbying and lamenting, we are now twelve months from the date the European Union's General Data Protection Regulation (GDPR) takes effect. The GDPR replaces the EU's Directive 95/46/EC, which has provided data protection guidance in the EU since 1995. The purported purpose for enacting the GDPR is to create regulatory consistency and certainty for companies operating in the EU with respect to their obligations to protect personal information for citizens of EU states. With a fining mechanism that allows penalties as high as 4% of global turnover (i.e., gross-revenue), any company that has yet to take a hard look at its obligations under the GDPR would be well-advised to do so before it's too late. Moreover, the breadth of the regulation will create compliance headaches for nearly every organization, large and small.

For U.S. companies, the degree of emphasis placed on protecting personal information can be hard to grasp. But as the GDPR explicitly states, protection of personal data is considered a “fundamental right” and further clarifies that “processing of personal data should be designed to serve mankind.” Regardless of your view on the sanctity of personal information, the reality is that if you conduct any business in the EU or sell any goods or service to citizens of EU states, your window for procrastination is rapidly closing. Fortunately, even if you are hearing about GDPR for the first time today, you do have time to get ready and be compliant on May 25, 2018. This article targets organizations that have been putting off compliance efforts and for which the GDPR will require a relatively modest adjustment in practices and procedures.

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