Who doesn’t want to browse the internet with total security? We guess, everyone among us seeks to have a secured browsing experience.
European Union (EU) has, therefore, taken the initiative to create a protected environment for its people across the internet by introducing ‘General Data Protection Regulation’ (GDPR).
Commencement of GDPR already became the “talk of the town” even before it was introduced in public, but did you know that data protection legislation in EU already exists in the form of ‘1995 EU Data Protection Directive.’ However, it has been already replaced by GDPR on May 25th, 2018.
Let us grab more details about GDPR and the reasons why it has been introduced!
Initially, GDPR was conceived in the year 2012 before the European Parliament adopted it in 2016, which gave rise to a 2-years’ margin for the firms to comply with new regulations regarding the capture, use, and storage of personal data of the individuals.
General Data Protection Regulation is a new framework or a set of data protection rules across Europe that has firmly replaced the 1995 data protection directive which is also used by the UK for data protection. The regulation has come into play to provide back control to the personal data of the individuals (regular internet users) and create an easy-to-access environment for the international businesses by establishing uniform regulations within the EU.
Generally, each member state in the EU functions under the existing 1995 Data Protection Regulation (DPR) that carries its national laws. The UK’s Data Protection Act 1998 sets out how the companies and the government can use the personal information of the individuals. On the other hand, GDPR focuses on how personal data can be used.
GDPR mainly covers all firms and individuals that are ‘controllers or processors’ of personal data, which includes Magento eCommerce merchants that store personal data. A controller is a body that makes decisions regarding the purpose and manner in which personal data will be used. Effect of GDPR on controllers places further obligations to ensure that the contracts with processors comply with GDPR or not.
On the contrary, a processor is considered to be a person or group that processes the data on the controller’s behalf.
Impact of GDPR on processors:
– Places legal obligations
– Maintains the record of personal data and processing activities
– Will have legal liability if responsible for the breach
1. Personal Data
GDPR can be used over personal data such as online identifiers, maintaining HR records, contact details, and customer lists. Therefore, GDPR applies to manual filing systems as well as electronic personal data.
2. Sensitive Personal Data
Sensitive personal data involves the exclusive categories of personal data, which can significantly include genetic data and biometric data that is used substantially to identify an individual.
Data protection rules followed in Europe have gone through sweeping changes regarding the data protection of the individuals and to keep up the pace with the significant technological change. Additionally, regulations have been re-written and are enforced all over the continent to keep up with the massive amount of digital data being created every day.
As far as previous data protection laws are concerned, they were unable to keep pace with the changing technological levels. However, GDPR will make sure that the old personal data laws across the EU move parallel with the increasing digital era.
Hence, it is assured that the new mutually agreed European GDPR will update personal data rules and enhance the data security of the regular customers.
All the individuals, as well as the companies that are controllers or processors of personal data, will be covered under GDPR. Information Commissioner’s Office (ICO) on its website states, “If you are currently subjected to the DPA, it is likely that you will also be subjected to the GDPR.”
Magento and GDPR
Magento is ready for GDPR and has published data processing agreement (“DPA”), shared its list of third party subprocessors and the platform is now Privacy Shield self-certified helping merchants to comply GDPR flawlessly. Customer success being the top priority for Magento, it has significantly launched GDPR to maintain transparency while handling and protecting data.
One of the most popular elements of GDPR is the power for the regulators to introduce fine for businesses that do not abide by the regulations. The regulations significantly include:
1. If an organization processes the individual’s data in an unclear way, it can be fined.
2. If a firm possesses the requirement of a data protection officer but doesn’t have one, it can be fined.
3. If there lies a security breach, it can be fined.
Final note:
GDPR aims to ensure that personal data of the individuals are kept safe and handled cautiously. Thus, it can be considered as a thoughtful initiative to make changes in the existing data protection laws and expand the scope of data protection.
We hope that the write-up would have provided you the relevant information while you prepare for GDPR compliance in the eCommerce industry. Although it can be considered as a challenging task for the Magento users and retailers, but the prime factor for compliance is transparency and more control for customers. Feel free to drop us a message for your Magento Development Services needs.
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Minal Joshi is a content marketer at Krish with a flair for eCommerce and Digital Commerce aspects. She is a MarTech fanatic with a knack of writing with which, she helps brands to curate, create, & commence digital brand positioning. Sharing insights via articles, case studies, eBooks, Infographics, and other forms of content creation is what she lives for. Being an ardent traveler, when not writing, you'll find her sipping coffee into the mountains or petting a stray.
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