Initially, General Data Protection Regulation was adopted by the European Union in April 2016. It replaced the outdated 1995 data protection act. It is put in place to protect the privacy and personal data of EU citizens for transactions that occur within EU member states. It also regulates the exporting data outside of the EU.
The updated GDPR will still require companies that do business within the European Union to protect the personal data and privacy of EU citizens for transactions that occur within the EU member states. The fact that the regulation will be consistent across all 28 EU member states means that businesses will have just 1 standard within the EU. However, the regulations standard will be very high, which will require companies to make large investments in order to comply with this new act.
What are the new changes?
The new GDPR will change the way data was previously handled. Before data breaches could have taken over 2 months to resolve. With the short timelines put in place, it will require companies to provide notifications to the country representatives within 3 days of a breach and immediately proved the details of the citizen whose details were exposed by that breach. This will lead to data breaches being resolved much quicker.
When will it come into effect?
The regulation will become active in 2018 and companies must show compliance with the regulation by the 25th of May 2018.
How much will it cost?
It is expected that the majority of US companies will spend between 1 – 10 million USD to comply with the requirements of the regulations. Some larger companies are estimated to spend over 10 million USD.
What will happen if there is no compliance?
If there is no compliance with the latest GDPR it will result in severe penalties and fines up to 20 million Euros or 4% of the company’s global turnover. The penalty will depend on which is higher.
It is estimated that currently, over 50% of companies believe that they will be fined by the new regulation and it is estimated that within the first year the EU could collect over 6 billion USD in fines. Companies such as Amazing Support can help you become compliant.
Blurred state of affairs
As it is still unclear how penalties will be assessed it is assumed that regulators will act very quickly to reprimand companies that show noncompliance. This will not only send a message to all companies it will help companies understand and make a better assessment of what to expect with noncompliance.