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As you may be aware, the European Union (EU) has introduced a new regime of General Data Protection Requirements (GDPR) as of 25 May 2018 and applies to businesses, regardless of size. A GDPR compliant Privacy Policy is now required by law.
The GDPR applies to you if:
Here’s our top 8 tips from a legal perspective.
First of all, the GDPR applies if your business offers goods or services to customers residing in the EU or monitors their behaviour (even if you don’t have an office in the EU).
Relevantly for Australian businesses, if your business has any EU customers whatsoever (both current and/or historical), the GDPR will apply to you no matter the size of your business.
It’s important to recognise that ‘personal data’ means any information relating to an identified natural person or from which a natural person can be identified.
This includes details that you may be collecting from your customers. These details can be a name, address, phone number, email address and any credit card details.
It also includes cookies or any other information collecting software.
If your business falls within the GDPR’s scope, you’ll need to consider, prepare and implement privacy and information management practices.
This essentially involves devising a privacy policy that is transparent and accessible for your customers by link on your website.
Under the GDPR, you must explicitly ask for and obtain an individual’s consent to process their personal data.
Secondly, you must make it as easy to withdraw as to give. Also, you must make the customer aware of this right to withdraw.
The easiest way to obtain this record of consent is by way of checkbox (which is not pre-checked) and / or email confirmation before the point of purchase, acknowledging that your privacy policy, terms and conditions and cookies policy (or any combination of these) have been read and understood.
Silence, pre-checked boxes or inactivity are not considered consent.
If you’ve previously been collecting data from customers without actively seeking their explicit and informed consent, you should inform them of the changes in your privacy requirements due to the GDPR and seek their updated consent.
Individuals who no longer consent to having their personal data held and used by your business have the ‘right to be forgotten’ under the GDPR.
Your customers may require you to delete their data in certain circumstances, such as where the information is no longer necessary for the purpose for which it was collected, or where the individual withdraws their consent and there is no other legal ground for processing their data.
It’s important to make a record of the consent that your customers provide, as you may need to provide evidence if regulators request to see it.
A regulator may wish to see a record of who gave consent, the date they gave it, and what they specifically consented to.
The GDPR is a regime that largely just helps consumers reclaim and protect their personal data.
You may think that as an Australian small business, you’re unlikely to be at a high risk of prosecution for being in breach of the GDPR privacy requirements.
However, the penalties of committing a breach are severe. The fine can go up to 4% of your business’ annual turnover.
Also, we’re not sure how vigorous the enforcement of this regulation is going to be yet, so it’s always best to take small steps to be proactive.
Find out more about:
Privacy Statements
Privacy Complaints and Procedures
Data Breach and Response Plan
Application to access personal information under the Privacy Act
Change of Personal Information Form
General Data Protection Regulation (GDPR) is a new data privacy law and it replaces the Data Protection Directive 95/46/EC. It started on 25th May 2018 and this regulation applies to all businesses operating in the EU or collecting information belonging to EU citizens.
The law covers all personal data, whether or not it is processed as part of a company’s activities, and applies to both manual and electronic data. It also places obligations on companies based outside of the EU offering goods or services to individuals living in the EU, or to EU citizens anywhere in the world.
The goal of this legislation is to modernise data protection law for the digital age while enhancing individual rights with regards to how their personal data is used by companies, organisations, and public bodies.
A GDPR privacy policy is a legal document that describes and explains the company’s use of the data, what information is collected, how you can access it and amend it, and a description of the steps taken to secure data.
A GDPR privacy policy is an important legal document that companies are required to have, if your company is based in the EU, if you offer goods or services to EU citizens anywhere in the world (i.e. if you have any EU citizen customer).
A GDPR privacy policy should include details about how your company will collect and store data, how you will protect it while in use and while at rest, who can access it and how, how long it will be retained for, what they do with any data once they no longer need it, and whether or not they share data with third parties.
If you are unsure on whether or not you need a GDPR privacy policy, please get in touch with Progressive Legal today.
According to gdpr.eu/fines: “The less severe infringements could result in a fine of up to €10 million, or 2% of the firm’s worldwide annual revenue from the preceding financial year, whichever amount is higher…The more serious infringements…could result in a fine of up to €20 million, or 4% of the firm’s worldwide annual revenue from the preceding financial year, whichever amount is higher.”
It’s best business practice to let your clients and customers know that you are looking after their personal information appropriately by way of a privacy policy. Most Australian business owners are obligated to provide a privacy policy to their customers by law. It is your responsibility to protect the data rights of your visitors, customers, or employees.
“I highly recommend Progressive Legal to anyone who wants a solid foundation for business success.”
Speak to a privacy lawyer today to get your GDPR compliant Privacy Policy. Please get in touch with us via phone or the contact form on this page.