Proper handling of user data can create a lucrative niche in the market. Especially for a start-up , investing in the business with sensitive data can be worthwhile.
On May 25, 2018, the European General Data Protection Regulation came into force. So it has been in effect for more than three years now. And there is still a great deal of uncertainty among many companies. Because the European law from Brussels is an expensive and cumbersome set of rules for many. And dealing with sensitive customer data is not easy.
But this law, properly applied and marketed, can create a lucrative niche in the market. Especially those companies that specialize in the following topics can earn money with the General Data Protection Regulation:
- GDPR-compliant processing of personal data
- Function as data protection officer
- interdisciplinary advice on data protection issues
What Is the General Data Protection Regulation?
The General Data Protection Regulation (GDPR) came into force in 2016 and has been in force across the EU since May 2018. It serves to establish uniform data protection law in the European Union and regulates which data about each individual consumer may be collected, (further) processed and commercialized.
What Does the GDPR Regulate?
In order to ensure the best possible data protection, this regulation defines the rights of consumers, the obligations of those responsible and the following principles of data processing. This includes:
In principle, data may only be stored or processed if one of the GDPR authorizes it. For example, if the person concerned has given their express consent or if there is a legal basis for this.
According to Recital 58, the principle of transparency means that information intended for the public or the data subject is accurate, easily accessible and understandable, and is expressed in clear and plain language, with additional visual elements where appropriate. In addition, all information on data processing must be accessible to the data subject at all times in simple language.
3. Purpose Limitation
Data may only be collected for clear and legitimate purposes, which must be determined prior to collection.
4. Data Minimization
Businesses may only collect as much personal information about an individual as is necessary for the specified purpose.
5. Accuracy of Processing
Accordingly, companies must ensure that their customers’ data is factually correct and up-to-date.
6. Storage Limitation
According to this principle, personal data may are only stored for as long as is necessary for the purpose for which they were collected. Then they must be deleted. However, this principle is in conflict with legal archiving obligations. And there can also be exceptions for scientific or historical research purposes.
7. Integrity and Confidentiality:
The security of the data (e.g. protection against loss, accidental destruction and against unauthorized or unlawful processing) must be guaranteed at all times by technical and organizational measures (TOMs).
With the help of these principles, EU data protection officers want to prevent companies from collecting an unnecessary amount of customer data. In this way, consumers and their fundamental rights remain protected when data is transferred within the EU. The transfer of personal data to countries outside the EU is also only permitted if the third country can guarantee adequate protection similar to the EU GDPR.
Particular caution is required in the case of data transfers between the EU and the USA. The reason for this is that the European Court of Justice (ECJ) overturned the so-called Privacy Shield in July 2020. Since then, the transmission of personal data to American service providers is no longer permitted without additional security measures.
How Private Individuals Benefit From the GDPR
The EU General Data Protection Regulation is about protecting the user. The correct and secure handling of their own data is becoming increasingly important to users. User trust is becoming the decisive factor for business success. If the user knows what happens to his data and how it is handled, he is more inclined to disclose it.
How Smart Companies Benefit From the GDPR
The European regulation was a heavy blow for companies specializing in personalized advertising or the evaluation of personal data. And the high fines for violating the General Data Protection Regulation also horrified many companies.
The principles of data processing according to the EU GDPR result in numerous obligations for companies. These affect, among other things, digital subscription providers, since they are required to provide their offers, e.g. B. subscriptions, have to collect a large amount of personal data.
Likewise, companies should examine the contracts with their employees, agencies and suppliers. This is because the GDPR distinguishes between the data controller (company that needs the data) and the processor (company that processes the data on behalf of the responsible company).
One thing is certain: in the European Union, every company has to deal with data protection. And if you can’t manage on your own, you should contact experts who will take over the processing of sensitive data.
How nexnet.cloud Deals With the GDPR
The nexnet.cloud has more than 20 years of market experience in the handling and processing of bills. Competent and professional handling of sensitive personal data is part of our quality feature.