Meta Fined €1.2 Billion for Breach of GDPR Laws. How Can You Avoid such Fines?
We’ve all seen cookie consent banners when you first land on a new website. But did you know this consent banner is required? Many businesses are unaware that they can be subject to severe fines if they do not include a cookie consent banner. We here at ALTAMIT can implement forward-thinking, strategic solutions to your website that will prevent you from incuring such violations.
With every click of the mouse, personal data is collected, traded, and monetized. As the internet continues to grow, so does data harvesting. In 2018, the European Union (EU) enacted the General Data Protection Regulation (GDPR) to combat malicious practices and increase personal data privacy.
The GDPR has been widely regarded as the most comprehensive data protection legislation in the world. Its primary objective is to protect the personal data of EU citizens. These data protection regulations have had a significant impact on the way businesses handle personal data.
Does the GDPR Apply to US Companies?
Yes. Currently, the GDPR applies to US companies that interact with users in the EU and to US companies that process the data of EU citizens. As noted by the OneTrust report Complete Guide to General Data Protection Regulation (GDPR) Compliance:
“US organizations may fall within the scope of the GDPR… To decide whether you are covered under the GDPR, you need to consider both the ‘material scope’ (i.e., whether your processing activity is regulated by the GDPR) and the ‘territorial scope’ (i.e., whether you are in a jurisdiction where the GDPR applies).”
What are the Penalties for Non-Compliance?
The consequences for breaching GDPR laws can be extreme. In recent news, the US based company Meta (formerly Facebook) was fined €1.2 billion for breach of GDPR compliance. According to the European Data Protection Board (EDPB), “Meta’s sanction is for breaching conditions set out in the pan-EU regulation governing transfers of personal data to so-called third countries (in this case the US) without ensuring adequate protections for people’s information” (TechCrunch.com, Meta ordered to suspend Facebook EU data flows as it’s hit with record €1.2BN privacy fine under GDPR).
As noted in the TechCrunch release, the EDPB’s chair, Andrea Jelinek, stated:
“The EDPB found that Meta IE’s [Ireland’s] infringement is very serious since it concerns transfers that are systematic, repetitive and continuous. Facebook has millions of users in Europe, so the volume of personal data transferred is massive. The unprecedented fine is a strong signal to organisations that serious infringements have far-reaching consequences.”
What Privacy Protection Laws Does the US Have in Place?
Following in the footsteps of the GDPR, the United States has also passed similar privacy protection laws at the State level. For instance, California recently passed the California Consumer Privacy Act (CCPA). The CCPA is a state statute intended to enhance privacy rights and consumer protection for residents of California. Since taking effect, the CCPA has caused major changes in the way businesses handle personal data.
Despite challenges in the short term, the long-term benefits of a more privacy-focused and secure marketing industry could be worth the effort. This thought is emulated in the Forbes article Is It Time For A U.S. Version Of GDPR?:
“The regulation is large and complex, and many companies have struggled to comply with all of the provisions. Nevertheless, the intent of the law is in the best interest of individuals whose personal information is too often abused by these very same corporate entities.”
How Can You Comply with the GDPR and US Privacy Protection Laws?
The GDPR and US privacy protection laws have had a profound impact on businesses. Businesses now need to be more transparent about their data collection practices, more responsible for data security, more focused in their marketing efforts, and more mindful of privacy concerns. They also need to be aware of the potential penalties for non-compliance and take steps to ensure that they are meeting the regulations’ requirements.
These privacy protection laws place strict regulations on common business practices, such as data collection and storage. Without the proper understanding of such laws, it’s possible that you are inadvertently breaking them.
Stay abreast of the latest in data privacy laws and ensure your company stays compliant by contacting the ALTAMIT experts today. ALTAMIT is certified by OneTrust as a Cookie Consent Expert. Our certified, forward-focused solutions will mitigate risk in data privacy and security. Additionally, we will integrate the necessary privacy-focused data management practices required for your organization. Visit ALTAMIT.net to chat live with an online specialist. Or call (888) 377-ALTA, that’s (888) 377-2582 to speak with a specialist now.
If you’re curious to learn how the US marketing industry will change under the GDPR and US State enforcement, keep reading below to learn more.
Increased Transparency:
The GDPR requires businesses to be transparent about how they collect, use, and process personal data. This means that marketers will need to clearly communicate to consumers what specific data is being collected and how it will be used. Consumers will also have the right to request access to their personal data and to have it deleted if desired.
Increased Responsibility for Data Security:
The GDPR requires businesses to implement strict security measures that protect personal data from unauthorized access, modification, and deletion. This will require marketers to ensure that both technical and organizational data management practices are highly secure. Additionally, marketers will need to have protocols in place to respond to data breaches.
More Focused Marketing Efforts:
The GDPR gives consumers the right to opt out of direct marketing, and businesses must obtain explicit consent before sending promotional messages. This means that marketers will need to be more strategic and focused in their marketing efforts, targeting only those consumers who are interested in their products or services.
Changes in Data Processing Agreements:
The GDPR requires businesses to enter into data processing agreements with all third-party processors used to handle personal data. This could include marketing agencies, data analytics firms, and cloud service providers. These agreements will need to be updated to reflect the GDPR’s requirements and to ensure that the third-party processors are complying with the regulations.
Increased Focus on Privacy:
The GDPR places a strong emphasis on privacy and the protection of personal data. This means that marketers will need to be more mindful of privacy concerns and will need to ensure that they are complying with the regulations. They will also need to stay up-to-date with the latest privacy-related developments, such as new data protection laws and emerging privacy technologies.
Higher Penalties for Non-Compliance:
The GDPR allows for significant fines for non-compliance, which can be as much as 4% of an EU company’s global annual revenue or €20 million, whichever is greater. This means that marketers will need to be diligent in their compliance efforts and will need to have robust processes in place to ensure that they are meeting the regulations’ requirements.
Sign up for our newsletter to be notified when new articles are posted.
