What is GDPR and How It Affects Businesses | JKSSB Mock Test

What is GDPR and How It Affects Businesses

GDPR (General Data Protection Regulation) is a European Union regulation designed to protect individuals’ personal data and privacy. It applies to all organizations that handle EU citizens’ data, regardless of location.

Simple Example:

• Personal Data = Name, email, phone number, payment info
• GDPR Compliance = Proper storage, consent, and security of that data

Why GDPR Matters

Reason	Impact
Data Protection	Ensures personal data is handled safely
Consent Requirement	Businesses must obtain clear permission before collecting data
Transparency	Users know what data is collected and how it’s used
Accountability	Organizations must document and report compliance efforts

Core Principles of GDPR

• Lawfulness, Fairness, and Transparency → Process data legally and openly
• Purpose Limitation → Collect only what is needed
• Data Minimization → Store only necessary information
• Accuracy → Keep data up-to-date
• Storage Limitation → Delete when no longer needed
• Integrity & Confidentiality → Protect data against breaches

Impact on Businesses

Area	Effect
Data Handling	Strict rules for storage, processing, and sharing
Privacy Policies	Must be clear and accessible to users
Data Breach Response	Report breaches within 72 hours
Fines	Up to €20 million or 4% of global revenue for non-compliance

Steps for GDPR Compliance

• Audit existing data collection practices
• Implement clear privacy notices and consent mechanisms
• Encrypt sensitive personal data
• Train staff on GDPR principles
• Set up breach detection and reporting procedures

Real-Life Example

In 2018, Google was fined €50 million by French authorities for failing to provide transparent information and valid consent regarding ad personalization, showing GDPR enforcement is strict.

Future Trends in GDPR

• Expanded global adoption of GDPR-like laws
• Stricter enforcement of data protection rules
• Integration with AI and cloud services
• Continuous monitoring and auditing of business practices

Final Summary

• GDPR protects personal data and privacy.
• Businesses must comply or face severe penalties.
• Compliance involves transparency, consent, and data security measures.

FAQs

• Does GDPR apply to companies outside the EU?
  ➡ Yes, if they handle data of EU citizens.
• What happens if a business violates GDPR?
  ⚠️ Fines up to 4% of global revenue.
• How can businesses prepare?
  ✅ Conduct audits, encrypt data, obtain clear consent, and train staff.

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