GDPR Enforcement Near: Stricter Rules, Higher Fines Await Businesses
The General Data Protection Regulation (GDPR), set to unify data protection compliance across EU member states, is nearing its final stages. The trilogue, involving the Council, Commission, and Parliament, is debating the final version through monthly meetings. Stricter practices are likely to be introduced, including tighter consent levels and restrictions on web analytics and profiling.
The GDPR is estimated to have significant financial implications. UK businesses alone could lose £47 billion in sales and spend £2.73 billion in preparation. Businesses face greater challenges than initially believed, with agencies and third-party data processors incurring high staff training costs to comply. The GDPR may extend the definition of personal data to cover some IP addresses and cookies, further expanding its scope.
The proposed sanctions for non-compliance are severe. Fines can reach up to €1 million or 2% of a company's global annual turnover. The Information Commissioner's Office (ICO) will target both brands and third parties for data breaches. Consent for using personal information must be freely given, specific, informed, and an explicit indication of the consumer's wishes.
The GDPR's enforcement involves various bodies. The European Commission and national authorities are responsible for the Digital Services Act (DSA) regarding profiling on very large online platforms and search engines. In Germany, the Digital Services Act (DDG) governs national competencies. The European Data Protection Board (EDPB) issues guidelines, while the Federal Ministry of the Interior (BMI) is involved in legislative changes of the Federal Data Protection Act (BDSG). Lobbying organizations like Bitkom e.V. influence these changes. As the GDPR nears implementation, businesses must prepare for these stringent rules to avoid hefty fines and reputational damage.
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