Impact of GDPR in Business Privacy Policies

CCl- Compliance Calendar LLP







The General Data Protection Regulation, abbreviated as GDPR, is an essential component of enterprises who provide products or services to European people. To comply with the GDPR and avoid massive data breach penalties, businesses must address a few critical issues in their operations, one of which is the creation of an effective privacy policy. A primary GDPR worry for a corporation going forward is to provide an organization with a complete data and privacy structure that falls under the scope of the Regulation. First, let us define GDPR and its impact for existing businesses and organizations.

What is the General Data Protection Regulation (GDPR)?

GDPR is a new set of regulations developed by European regulators. Several such regulations have been enacted around the world. However, none of them had genuine objectives that made a difference. The General Data Protection Regulation (GDPR) stands out in this regard. The data privacy standards that organizations must follow under the GDPR are stringent. The penalty for failing to comply are quite severe. Here are some examples of how GDPR differs.

  • The General Data Protection Regulation (GDPR) does not simply apply to European-registered businesses. It makes no difference where the corporate entity is registered. Companies must comply with the GDPR standards as long as their products or services are sold to European clients.

  • These new data standards require businesses to hire a dedicated GDPR officer who will be accountable for adhering to all compliance standards. If a corporation fails to comply with the extremely stringent standards outlined in the General Data Protection Regulation (GDPR), the penalty is 20 million Euros or 4% of the company's global revenue, whichever is greater! This is a severe punishment. Companies who sell goods and services online are not accustomed to such stringent requirements. This is a significant shift that businesses are struggling to adjust properly.

Privacy Policies And The GDPR

A privacy policy is basically a document seen on a website that describes how a company will collect, store, protect, utilize, and dispose of personal information submitted by its users. Drafting & Vetting Services become key to implement Privacy Policies and the GDPR.

Privacy policies have become the de facto means of describing how a firm or organization collects, shares, and uses personally identifiable information, particularly on its internet (PII). Many government bodies around the world (for example, the FTC in the United States) require the publication of privacy rules. Furthermore, many people are working to protect consumers' personal information by implementing laws and regulations governing these policies. The General Data Protection Regulation (GDPR) in the EU is one of the most recent of such policies and laws. According to the GDPR, personal data is "any information relating to a recognised or identifiable natural person," such as identification numbers, location data, or physical data. Personal data protection being a basic right of natural persons, the GDPR (in Article 5) requires that personal data shall be:

  1. treated legitimately, fairly, and transparently.

  2. gathered for certain and limited purposes.

  3. sufficient, relevant, and limited to what is required

  4. correct and up to date

  5. kept such as identification permits for no longer than necessary (storage limitation).

  6. handled with integrity and discretion

Why is privacy policy required?

If a company/organization collects personal information from its users, it is necessary by law to have a Privacy Policy in place. Privacy policy assists in creating confidence with users. It also aids in meeting legal obligations. Other concerned parties may demand an organization to have a privacy policy in place. It assists in avoiding expenditures and expenses in legal situations as a result of an inefficient privacy policy, making a profit by creating user trust, avoiding dangers, and keeping the organization's earnings safe and secure.

How do you protect users' privacy rights?


Companies must obtain explicit agreement from users before collecting, using, or storing personal data.

Information availability

Companies must give documentation of user data when requested.

Removal of data

Users have the right to request the erasure of their data from companies.

Data modification

To modify the previously provided user information.


Data subjects have the right to object to the use of their information.


Data subjects can request the location of their data, as well as its storage and transmission.

Use Restrictions

Data subjects have the right to object to the use of their personal information for marketing purposes.

Which businesses are required to comply with the GDPR?

GDPR applies to all organizations that are established or operate in the European Union. It makes no difference where the data processing takes place in the world; if you are a non-EU firm offering services to customers in the EU, you must ensure GDPR compliance. If you intend to sell your items to EU residents, who are your possible buyers, you must follow GDPR regulations.

GDPR-compliant privacy policy

Who your data controller is, as well as the data controller's contact information

The Data Controller is in charge of its customers' personal information. The data controller tells the client about their data and how it is processed, who the company is, how it uses or controls the data of users, how it saves the data of users, and so on. The data controller's contact information is also disclosed to users so that they can contact them if they have any concerns about their data.

What is your DPO's name?

If the company has a DPO, the name of the DPO and contact details for the DPO must be included in the privacy policy.

Whether you use data to make automated decisions.

If personal data is used for automated decision making, such as credit scoring or profiling, the data controller must inform them.

Inform users of their eight GDPR rights.

GDPR grants data subjects eight rights, and those rights must be communicated to them, together with an appropriate method for exercising those rights. Data subjects have the following eight rights:

  1. The right to information;

  2. The right to be heard;

  3. The right to be corrected;

  4. The right to be forgotten;

  5. The ability to limit processing;

  6. The freedom to move data;

  7. The ability to object;

  8. Automated decision-making and profiling rights

Any transfer made by the controller must be indicated in the company's privacy policy in order for users to be aware of the location and processing of their data and make an informed decision.

What is your legal basis for data processing?

Article 6 of the GDPR specifies six legal basis for processing its customers' personal data. To process data, an organization must have a valid legal basis. Consent, contract performance, a legitimate interest, a vital interest, a legal necessity, and a public interest are all examples of legal bases.

How to Obtain Consent?

If consent is used as a legal basis for collecting information, it should be obtained openly from users. To assist clients in making an informed decision, the Data Controller should utilise checkboxes and click wrappers to obtain consent. If the data is sensitive, explicit consent should be acquired.

The impact of non-compliance of GDPR on business privacy policies

A corporation must follow the GDPR standards in order to avoid a large fine of 20 million Euros or 4% of the company's global turnover, whichever is bigger. It entails selecting a designated Data Privacy Officer who will be in charge of adhering to all compliance standards.

Changes in the business privacy policies

  1. The information is prominently displayed and easily accessible.

  2. Keep it up to date, and always notify users when your privacy policies change.

  3. Language should be succinct, simple, and clear.

  4. The information about who you are and other facts assist the data subject in making an informed decision about whether or not they are willing to give their data.

  5. Inform users with your contact information and the geographical location of your company.

  6. While creating a privacy policy, businesses should consider numerous questions.

a) What personal information will you gather?

b) Who will be in charge of gathering this data?

c) Where will you keep this private information?

d) Whose data are you collecting?

e) Why is the data being collected?

f) With whom are you disclosing this information?

g) How do users gain access to their [personal data]?

h) How can users easily limit or refuse to provide this information?

i) How do you notify users in the event of a data breach?

Suggestions for developing an efficient privacy policy for organizations in accordance with GDPR standards

Texts should be simplified

Simplify phrasing using shorter sentences and relevant substance. Rephrasing section titles into questions is one of the finest practises.

For instance, do you share my information with third parties?

Designing for Convenience (Macro)

Provide a brief interpretation of the sections in very simple terms, as an assistance to interpretation. Non-textual design features, such as icons, unique colours for heads and subheads, better alignments, and so on, should be employed to give a better user experience.

Designing for Convenience (Micro)

Readable font type, proper line spacing and paragraph spacing, unique font size for heads and subheads, distinct colours for heads and subheads, consistency in typographic treatment- comparable texts should appear similarly across the document

Making a Point (for disclaimers, onerous clauses, etc.)

Provide headings such as "notice", "disclaimer", etc. for disclaimers, use proper capitalization, may use markers, may type in italic, bold, or underlined, etc.

Providing language assistance

The language should be readable, and options for converting the text into the languages of the locations where the services are supplied should be provided.

Permitting for offline use

Even if the document is available online, provide an offline version.

Other ways of presenting

Presenting a privacy policy in any form is helpful; better yet, present it in many modes such as audio, video, or writing. It will improve user comprehension and engagement.


GDPR has mostly benefited Data Subjects by granting them various rights over their personal data. Other countries are anticipated to follow in the footsteps of the EU by passing data protection and privacy legislation. Users' privacy is a big concern, and other countries will soon have comparable regulations in place to protect their data. With the rise of data security and new regulations in this area, data protection officers and other legal specialists will have more chances and, as a result, more money. GDPR compliance relies heavily on privacy policies. Nonetheless, technology are rapidly evolving, and in order to keep up, businesses must constantly monitor and update their privacy policies. Employees and staff play an important part in the firm and must be aware of the responsibility they bear while dealing with customers' personal information.

To conclude, the General Data Protection Regulation (GDPR) contains both advantages and disadvantages. However, the benefits primarily benefit consumers and major enterprises. Small firms are bearing the brunt of the costs of greater regulation.

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