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Every UK business handles and stores personal information. Whether entering customer details onto a computer system or recording information about staff within personnel files, this constitutes ‘personal data’. All UK businesses must follow the rules of the General Data Protection Regulation (GDPR) when handling personal data. This article will explore the risks of ignoring GDPR rules to help your organisation understand the importance of compliance.
What is the GDPR?
The GDPR is a law setting out detailed data protection rules for UK organisations. It has a broad remit due to its all-encompassing definition of ‘personal data’. The GDPR classifies personal data as any information that can identify a living person.
With this definition in mind, the GDPR deems the following types of information as personal data:
- health data;
- biometric information;
- date of birth;
- home address;
- eye colour;
- CCTV footage;
- National Insurance number;
- car registration number; and
- credit card information.
In short, the only information relating to an individual that will not be classified as personal data is that which is anonymised. However, it can be difficult to truly anonymise personal information without using an advanced anonymisation technique.
It is, therefore, best to presume that all information relating to individuals should be handled in compliance with GDPR rules unless an expert lawyer advises you otherwise. Failing to do so may result in the Information Commissioner’s Office (ICO) investigating your business.
Who Are the ICO?
The UK Government set up the ICO to police data protection compliance in the UK. On the one hand, they aim to educate UK businesses by publishing helpful online guidance on GDPR compliance. Additionally, they have the power to fine UK organisations up to £17.5m for breaches of the GDPR. The large fines are intended to act as a deterrent against ignoring the provisions of the GDPR.
Let us explore three reasons your business should avoid GDPR violations below.
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1. Fines From the ICO
If the ICO believes a potential breach of the GDPR has occurred, it will start a formal investigation. The ICO will consider imposing a financial penalty if that formal investigation concludes that your business has breached the GDPR.
The ICO tends to consider the award of a fine in the following circumstances:
- unlawful monitoring of staff and individuals on your premises;
- failure to correctly respond to Subject Access Requests;
- refusal to report serious data breaches to the ICO within 72 hours;
- unauthorised disclosure of personal data to third parties without consent;
- suffering an avoidable data breach (i.e. cyber attack that proper cyber security measures could prevent); and
- failure to delete personal information once it serves no legitimate purpose.
As of late 2022, the combined figure for the five biggest fines handed down by the ICO comes to nearly £50m. This demonstrates that the ICO will impose substantial GDPR fines to deter other businesses from taking data protection law lightly.
2. Reputational Damage
When the ICO imposes a fine, it also tends to publish a press release on its website naming the business in question and the reason for the fine. Naturally, social media and traditional media tend to report GDPR breaches, which can reduce consumer confidence in your business.
Very few consumers want to deal with an organisation that does not appear to safeguard their personal information. This is particularly true nowadays with the ever-increasing risk of identity theft by selling stolen customer data on the dark web.
3. Increased Risk of Data Loss and Cyber Attacks
One of the primary purposes of the GDPR is to encourage UK organisations to safeguard their information. Many GDPR rules aim to put robust systems in place, making it harder for cybercriminals to gain unauthorised access to your servers.
It is, therefore, crucial to handle and store data in the manner set out in the GDPR, as not doing so makes it more susceptible to cyber criminals. One of the most common reasons to receive a fine is the failure to store data safely, leading to an otherwise avoidable cyber attack.
Key Takeaways
Whilst the GDPR is a fairly lengthy document, its main aim is to help your business safely handle and store personal information. Doing so is to your company’s advantage as it reduces the risk of cyber-attacks and subsequent fines from the ICO. Complying with the GDPR also helps protect your organisation’s reputation, as news of ICO fines spreads quickly online and may reduce consumer confidence in your brand. Many UK business owners obtain expert advice from lawyers to ensure full GDPR compliance through their policies and systems.
If you need help ensuring your business is GDPR compliant, our experienced Data, Privacy and IT lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
The ICO believes that the threat of publication is a significant deterrent to businesses that may otherwise be tempted to ignore GDPR rules. Many UK businesses have suffered a drop in consumer demand due to the media attention given to ICO fines.
To an extent, yes. Many businesses review the online guidance on the ICO website and then contact lawyers to draft specific data protection documents and policies.
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