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Do you know who is responsible for data processing under the GDPR?
IAB Europe, the trade association for digital media and advertising in Europe, has recently been found in breach of GDPR which emphasizes the importance of correctly understanding and adhering to this complex set of rules.
Discover how data processors should be following GDPR regulations.
Introduction to GDPR and Data Processor Role
The General Data Protection Regulation (GDPR) is the EU-wide legislation that took effect on May 25th, 2018. It focuses on the protection of a natural person’s personal data and how it is collected, processed, and stored. It replaces laws previously written in 1995.
Data processors play an integral role in ensuring the personal data of their customers are managed responsibly while meeting GDPR’s standards. These third-party services provide support to organizations who collect and process information such as customer names and payment details.
Data Processors are responsible for collecting, processing, storing and/or transmitting personal data on behalf of their clients, as well as ensuring that they comply with all applicable GDPR regulations. Data processors have an obligation to follow security policies to protect the data in their care from unauthorized access or malicious attack throughout its lifecycle. The processor must also notify the associated Controller when there has been any breach of security or potential inappropriate use of personal data.
Before engaging with a Data Processor, organizations must review and assess its infrastructure for GDPR compliance prior to collecting or processing any new customer’s data with them under GDPR regulation guidelines.
IAB Europe says it’s expecting to be found in breach of GDPR
Under the General Data Protection Regulation (GDPR), organizations must protect personal data from unwanted processing, and this includes data processors. IAB Europe has established certain expectations of GDPR compliance for those who process personal data on behalf of the organization.
Data security and breach notifications are two of the most important elements covered by GDPR for which data processors should take responsibility. An organization is required to report any security breaches that may compromise a person’s personal information. Data processors should be able to demonstrate their capability to provide such notifications in a timely manner without putting sensitive information at risk.
In addition, organizations must ensure that their clients have the right to access, correct, transfer or delete the personal information they store. As part of their GDPR responsibilities, IAB Europe expects data processors to offer these rights whenever possible in order to comply with GDPR’s right of access requirements.
Data processors should also be aware that they can be held liable for any damage resulting from unlawful processing activities or other violations against GDPR’s mandates. Therefore, it is essential that data processors have effective processes and procedures in place to ensure compliance with GDPR legislation as well as industry best practices such as privacy impact assessments (PIAs) and risk analysis and mitigation plans (RAMPs).
Finally, organizations must provide evidence that the steps taken by the processor are adequate for protecting personal information consistent with the expectation laid out by IAB Europe’s commitment to respect consumer privacy. This means organizations must offer proof that their data processor agreements contain language detailing appropriate measures taken for purposes such as protection from unauthorized access, theft or other technical threats among other qualifiers laid out under GDPR Article 28(3).
Data Processor Obligations under GDPR
Data processors operating under the European Union’s General Data Protection Regulation (GDPR) must adhere to specific obligations under the law in order to comply. A data processor is a business or person that processes personal data on behalf of another business, known as the data controller. The GDPR sets out specific requirements for ensuring that personal data remains secure, accurate and up-to-date, including but not limited to:
-The appointment of a Data Protection Officer (DPO): Data processors are required to appoint a DPO if they process large amounts of sensitive personal data, or regularly monitor a large portion of an EU Member State’s population. The DPO should have sufficient knowledge and expertise about the GDPR and other relevant laws and regulations to ensure compliance.
-Implementation of security measures: All organizations processing personal data must take appropriate technical and organizational measures against unauthorized access or processing. This includes ensuring that any subcontractors processing data on behalf of the company do so according to GDPR standards as well.
-Obtaining explicit consent: Companies must obtain explicit consent from users before collecting or processing their data, unless there is another valid legal basis for doing so as outlined by the GDPR.
-Safeguarding user rights: The GDPR grants users specific rights regarding their own personal information such as access, erasure, rectification and portability. Organizations must be aware of these rights and strive to protect them through technology and policy implementation.
-Risk assessment: Companies should review their entire processes to determine any potential security risks associated with handling personal information. If vulnerabilities are identified, steps should be taken immediately to minimize any potential harm from occurring due to exposure or misuse of sensitive information. Additionally, companies should create strategies for incident response in case a breach does occur in order to ensure that all necessary steps are taken swiftly in order limit damage caused by unauthorized access or exposure.
How to Ensure GDPR Compliance for Data Processors
The EU General Data Protection Regulation (GDPR) applies to both controllers and processors of personal data, to ensure that personal information is protected. Data processors are third-party companies or organizations that process or ‘process’ personal data on behalf of a controller. In other words, they’re responsible for the actual handling of someone’s personal data.
In light of this extra responsibility, there are several steps that data processors need to take in order to comply with the GDPR:
1. Ensure written contractual agreements between themselves and their customers: any data processor providing services under the scope of the GDPR must enter into a written agreement with their customer or controller, setting out their obligations as GDPR processors and setting out details such as technical measures enacted by the customer/controller.
2. Implement security measures: all necessary organizational and technical measures must be taken to ensure the protection of information processed; this includes internal policies (such as those covering staff training), Pseudonymisation and encryption technologies, secure systems and additional access control requirements.
3. Perform regular monitoring checks: controllers must regularly audit processors in order to check that they are meeting expectations when it comes to keeping data secured according to principles set out in Article 32 (Security of Processing) of the GDPR. This should also include a review of all contracts that they have with suppliers/other third-parties involved in processing personal information.
4. Establish breach notification protocols :if any breach occurs, the processor must notify their customer/controller “without undue delay”; reasonable steps must be taken before any notification is made including identifying what has happened, determining potential risks & assessing impact before notifying customers/respective DPA’s & recommending appropriate remedial action as quickly as possible in accordance with Article 33 (Notification Obligation).
Key Considerations for Data Processors
By engaging a data processor, data controllers entrust the processor with personal data, giving the processor certain obligations and privileges that must be respected. It is therefore important for both controllers and processors to have an understanding of their respective roles in order to ensure compliance with the General Data Protection Regulation (GDPR).
Data Processors are those who process personal data on behalf of the Data Controller, such as cloud service providers or payroll processing companies. The core responsibilities of the Data Processor under GDPR include:
– Ensuring that processing activities comply with instructions from the Controller;
– Implementing appropriate technical and organizational measures to protect personal data;
– Assisting the Controller in meeting its obligations under GDPR including responding to requests for access to or correction of personal data;
– Taking necessary measures to ensure security and confidentiality when processing personal data;
– Refraining from using or disclosing Personal Information for any purpose other than what has been specified by the Controller; and
– Deleting or returning all personal data to the controller upon completion of contract.
Additionally, processors must gain informed consent from all individuals whose information they collect unless they are already subject to an existing agreement regarding their use of this information. This agreement should also include details regarding how any third parties that have access to any collected information will store, use, disclose and delete this information according to GDPR requirements.
Impact of GDPR on Data Processors
The General Data Protection Regulation (GDPR) is a major change for the handling of personal data in the European Union. The regulation affects not only organizations that collect and process personal data, but also has implications for data processors – organizations, other than the controllers, who process personal data.
Data processors must adhere to GDPR by ensuring that all contracts with third party partners are legally binding and contain GDPR compliant stipulations. The processor must also take all necessary steps to inform any external parties that accesses the data of their role being a data processor. Also, they may not transfer the collected personal data to any unauthorized third parties or countries outside of those approved by GDPR. Processors need to maintain detailed records including information like DPAs and record-keeping documents as part of their compliance in their organization’s actual GDPR obligation.
Processors face punitive measures as defined by EU should they fail to comply with GDPR regulations – these include administrative fines, up to €20 million or 4% of annual global turnover whichever is higher and temporary or permanent banning from processing personal data depending on severity of violations or level of negligence or intent with respect to infringement of security matters related to stored customer base information, identity theft breaches and so on by any culprits inside or outside their organization. Protecting customers’’ privacy must always be held in highest regards for it leads to greater trust and potential wins in terms of customer acquisition over time which translates into greater customer loyalty value per customer over a long term period.
Challenges for Data Processors in Achieving GDPR Compliance
Data processors have a number of challenges to meet if they are to achieve full compliance with the GDPR. First, data processors are required to explicitly document their data processing activities and demonstrate that they have taken appropriate measures to protect the integrity and confidentiality of personal data. To do this, data processors must develop comprehensive protection measures, implement relevant technical and organizational measures, implement processes for responding to potential breaches or misuse of personal data, ensure staff training and appropriate authorization by authorized personnel when access is required.
Additionally, data processors must also inform their customers in accordance with the GDPR’s transparency obligations. These requirements include providing information on the scope and purpose of their processing activities as well as the details on how they collect or process personal data. Additionally, data processors must also provide mechanisms for customers to exercise their rights under the GDPR such as granting access requests or correcting inaccurate information about an individual’s personal data.
Finally, data processors must also comply with additional obligations imposed by any other laws applicable in respect of different types of processing activities such as those relating to special categories of confidential information or sensitive personal information (e.g. medical records). This can include meeting relevant retention periods for keeping certain recordings or log files under national laws applicable in the country where processing is taking place.
Summary and Conclusion
In summary, the primary role of data processors under the General Data Protection Regulation is to process personal data only on behalf of controllers. This means that they must act according to the instructions given by their controllers in regards to how they collect, store, and use an individual’s personal data. Additionally, they must also ensure they take appropriate measures to protect the privacy of individuals whose personal data they are processing.
Furthermore, controllers are liable for any actions taken by a processor in accordance with their instructions; thus it is important for controllers to adequately assess those who may act as processors in order for both parties to remain compliant with GDPR regulations.
