GDPR isn’t just a European regulation and it has reshaped the way businesses worldwide handle data privacy. Companies outside the EU that process or store data from EU citizens must comply with its strict requirements or risk heavy fines. From updating privacy policies to restructuring data security strategies, businesses across industries have had to adapt.
Understanding how GDPR affects operations beyond Europe is essential for staying compliant and maintaining customer trust in an increasingly data-driven world. More companies than ever are having to employ compliance officers, legal professionals with a strong eye on compliance and similar, with GDPR, data security and keeping customer data safe and secure more important than ever, both with regards to prevention as well as should the worst happen.
What Is GDPR?
The General Data Protection Regulation (GDPR) is a European Union (EU) law that sets guidelines for organisations on how they handle and process the personal data of individuals within the EU. It seeks to provide people more control over their personal information and guarantee that businesses manage it fairly, openly, and legally.
Does GDPR Apply To Businesses Outside the EU?
The GDPR lays out specific guidelines for businesses and organisations on the gathering, storing, and handling of personal data. It is applicable to both European organisations that handle the personal data of EU citizens and non-EU organisations that target EU citizens.
Which Countries Do Not Follow GDPR?
The countries listed here are in Europe or the EEA (European Economic Area) or do business closely with Europe but have not implemented the GDPR regulation:
- Albania
- Belarus
- Bosnia and Herzegovina
- Kosovo
- Moldovia
- Montenegro
- North Macedonia
- Russia
- Serbia
- Turkey
- Ukraine
Even if they haven’t put the GDPR into effect, any organisation in these countries that gathers data in EU or UK member states is liable for it.
The Impact of GDPR on Businesses Outside The EU
Because GDPR has extraterritorial reach, companies that process the data of EU people but are not based in the EU may nevertheless be subject to its rules. International regulatory agencies may become aware of non-compliance, which could have repercussions outside of the EU.
In the business sector, trust is a vital resource, and a company’s reputation can be permanently harmed by noncompliance with GDPR. Consumers are becoming more and more aware of how businesses manage their personal information, and news of data breaches or privacy infractions spreads swiftly. After a breach, restoring confidence can be difficult and time-consuming.
Are There Any Exceptions to GDPR?
There are two important exceptions to GDPR. The first exception is that GDPR does not apply to purely personal or household activity. The GDPR only applies to businesses engaged in professional or commercial activity.
Businesses with less than 250 employees are the second exemption. Although they are not immune from the GDPR, small and medium-sized businesses are generally excluded from its record-keeping requirements.
When Does GDPR Apply Outside the EU?
As mentioned, companies outside the EU might need to comply with GDPR in certain situations. Here are the two scenarios where GDPR applies to companies outside the EU:
Offering Goods Or Services
The Internet makes goods and services in faraway places accessible anywhere in the world. However, the GDPR does not apply to occasional instances. Instead, to ascertain if the company intended to sell products and services to EU citizens, regulators search for further hints.
They will do this by checking for things like if a Canadian business, for instance, made advertisements in German or put prices in euros on its website.
Monitoring Their Behaviour
You are subject to the GDPR if your business employs web tools that let you track cookies or the IP addresses of visitors from EU nations. In practice, it’s uncertain how harshly this clause will be applied or how blatantly it will be implemented.
How To Ensure Compliance With GDPR
Businesses must maintain strong data protection procedures and ensure compliance with the General Data Protection Regulation (GDPR). The following advice can assist businesses in achieving and upholding GDPR and data protection compliance:
Understand Applicability
Determine with certainty if GDPR is applicable to your company. Regardless of where your company is based, GDPR is probably applicable if you handle personal data belonging to clients in the EU.
Conduct Data Audits
Conduct routine audits and keep records of the kinds of personal information your company handles, where it is kept, and how it is put to use. Data stored by third-party processors is included in this.
Data Subject Rights
Learn about and abide by the GDPR’s rights for data subjects, which include the ability to access, correct, delete, and limit processing. Create protocols for responding to data subjects’ requests.
Regular Compliance Audits
Perform routine internal audits to evaluate GDPR compliance. In order to guarantee continued adherence to data protection principles, this entails assessing policies, procedures, and documentation.
Keep Abreast of Regulatory Updates
Keep up with changes to the rules and regulations pertaining to data protection. Make sure your procedures comply with any modifications by routinely checking for revisions to the GDPR requirements.
Organisations can improve their capacity to adhere to GDPR and protect individuals’ right to privacy by putting these suggestions into practice.
