GDPR to be implemented from 25th May which is
nearer than it appears for companies. The impact is going to be enormous! Are
companies ready for it?
The term GDPR has become even more familiar to customers with
Google sending emails about its updated privacy policy. However, there remains
a number of people who are still unaware of the ins and outs of the newly
updated legislation.
What is GDPR?
General Data Privacy Regulation allows people residing in
Europe Economic to have a control over the data shared and used in the area of
digital marketing of all business verticals. Though the list of added rules and
regulation in the GDPR is pretty long, here’s a brief version of crucial
rule-frame which a marketer shouldn’t miss at any point in time.
Breaking it down:
GDPR will ensure more transparency in the operations of
companies and how they collect and use the customers’ data. Also, the new
regulations also allow customers to control and monitor the data used. At any
given point in time, EU residents are given liberty to access stop sharing the
data with companies.
Encourage ( or rather oblige ) companies to keep transparency
in the marketing operations with respect to_
-
Data
collected from the consumer
-
Data
used from the data collected
-
Access
to the data shared to its customers.
-
Consent
from the customers for collecting and using the data
The date of regulation implementation is already nearer than
it seems for marketers. In recent surveys conducted, companies were asked their
opinions on GDPR and it was found that the majority of the companies are not
ready for the change. Companies were given 2 years to get compliant with the
change but there are a lot of undertakings who are relied on marketing based on
data extracted from digital presence. The new rules are making it even more
difficult for such tech giants.
The impact of
GDPR
Many companies which run their businesses with data collection
being their core competence. Facebook and Google are some of such firms which
use customers’ data on a large scale to improve the user experience. These
companies undoubtedly will have to take the regulation seriously but what about
others? More than 40% of businesses in England have not even heard the term
GDPR.
What
about businesses which are not operating from the UK?
The rules of GDPR are not only applicable in the EEA region
but also to the companies who have direct or indirect operational relation with
EEA region. Meaning, even if the company has headquarters outside the EEA
region but conducts business in Europe, collects data from the said region,
promotes themselves in Europe or has personnel working in there, they are bound
to follow the rules and regulations listed in GDPR.
Penalties?
Entities who will violate the rules and regulations of GDPR’
provisions, the penalties imposed differ depending on the type of violation. It
also depends on the person or undertaking which mishandled personal data or
violated any other norms of the regulation. The penalty amount is going to cost
a fortune especially for the companies who gain higher revenue but less profit.
Violation of major rules could fine up to 20 million Euro or 4% of the global
annual revenue (either of two depending on the greater amount)
Contradictions
There are a couple of countries in the UK which are already
having regulatory bodies to look after the digital operations companies or have
pre-set rules which overlap the regulation mentioned in GDPR. It will be
interesting to see how the companies compliant with the new regulations and
what will be the overall impact.
Speaking from a customer’s point of view, there will more
power in the hands of consumers and convincing them to give consent for the
data collection might just get difficult. Of course, there will be many of them
who will blindly give consent but other may not. The introduction of GDPR has
become the new challenge for businesses while marketing their product and
services and expanding their operations on a larger level.
- written by Gauri Ludbe
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