5 Critical GDPR Compliance Mistakes Non-EU Companies Must Avoid
While GDPR primarily targets entities within the EU, its reach extends far beyond European borders, encompassing any organization handling the personal data of EU citizens. Non-EU companies, especially those unfamiliar with GDPR nuances, often stumble upon compliance pitfalls, inadvertently inviting legal and financial repercussions. This post delves into five critical mistakes non-EU companies frequently make regarding GDPR compliance.
1. Underestimating GDPR’s Jurisdictional Reach
Many non-EU businesses mistakenly believe that GDPR doesn’t apply to them, assuming a geographical shield against its mandates. However, GDPR’s scope is extraterritorial. It applies to any organization, regardless of location, that processes the personal data of individuals residing in the EU. Ignorance of this fact often leads to non-compliance, risking hefty fines and reputational damage.
2. Inadequate Data Protection Measures
Non-EU companies sometimes underestimate the stringent security measures GDPR demands for personal data protection. GDPR requires implementing appropriate technical and organizational measures to ensure data security. Neglecting this aspect, such as failing to encrypt personal data or not having robust cybersecurity protocols, can lead to significant compliance issues.
3. Overlooking Consent and Data Subject Rights
Consent under GDPR must be explicit, informed, and freely given. Non-EU businesses often err by not obtaining proper consent for data processing or failing to recognize the rights of data subjects, including the right to access, rectify, erase, or port their data. Not respecting these rights can lead to non-compliance and legal challenges.
4. Neglecting Data Processing Records and Impact Assessments
GDPR mandates thorough documentation of data processing activities and necessitates Data Protection Impact Assessments (DPIAs) for high-risk processing. Non-EU companies often overlook the importance of maintaining detailed records and conducting DPIAs, leading to non-compliance, especially during audits or inspections.
5. Poor Vendor Management
Non-EU businesses must ensure that their vendors and third-party service providers handling EU citizens’ data are also GDPR compliant. Failing to conduct due diligence on partners and neglecting to include GDPR compliance clauses in contracts can result in shared liability for any data breaches or non-compliance incidents.
BONUS: Foregoing Automation
Continuous compliance is like taking care of your teeth.
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