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Key Data Protection Considerations When Running a Business

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Data has become a critical asset for businesses across all industries in today’s digital age. Like many other countries, the UK has recognised the importance of data protection and enacted comprehensive legislation to safeguard individuals’ personal information. The General Data Protection Regulation (GDPR) and the Data Protection Act 2018 are at the forefront of data protection in the UK. As a business operating in the UK, it is imperative to understand and comply with these regulations to protect your customers’ data and your company’s reputation. This article will explore the key data protection considerations when running a UK business.

1. Data Mapping and Inventory 

Before addressing data protection concerns, it is crucial to understand the customer data your business collects and processes.

Conduct a comprehensive data mapping exercise to identify: 

  • what types of data you collect;
  • where it comes from;
  • how it is stored;
  • who has access to it; and 
  • how it is used. 

This step is essential to ensure GDPR compliance, as it gives you a clear picture of your data processing activities.

It is a good idea to start by creating a data inventory that includes:

  • customer data such as personal information, contact details and purchase history;
  • employee data such as payroll information, HR records and performance reviews;
  • supplier data such as contact information, payment details and contracts; and
  • marketing data such as email lists, campaign results, and customer preferences.

Once you have a complete data inventory, you can implement the necessary safeguards to protect this data.

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2. Data Protection Impact Assessments (DPIAs)

Under GDPR, businesses should conduct data protection impact assessments (DPIAs) when processing activities likely result in a high risk to individuals’ rights and freedoms. DPIAs help identify and mitigate potential risks associated with data processing, ensuring that you address privacy and security concerns from the outset.

When launching new products or services or making significant changes to your data processing activities, it is crucial to conduct a DPIA. This assessment should include evaluating the necessity of the data processing, the potential risks, and the measures taken to mitigate those risks.

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3. Data Minimisation and Purpose Limitation

One of the fundamental principles of data protection law is data minimisation. This principle dictates that you should only collect and process the data necessary for the purpose for which it was collected.  Avoid collecting excessive or irrelevant information that may infringe on individuals’ privacy rights.

Additionally, it is a good idea to practice purpose limitation. This means you should only use personal data for the specific purpose for which it was collected. Deviating from the original purpose requires explicit consent or a legal basis for processing.

Transparency and informed consent are central to GDPR compliance. When collecting personal data, you must be transparent about how you will use the data and obtain unambiguous consent from individuals.

Consent should be easy to withdraw. Additionally, individuals should be able to access their data and understand how it is processed.

Ensure that your privacy policies and terms and conditions are written in clear, understandable language, allowing individuals to easily opt-out or manage their preferences.

5. Data Subject Rights

Under the UK GDPR, individuals have certain rights regarding their personal data. As a business, your data controller or data protection officer must be able to address these rights promptly.

Some of the critical data subject rights include:

  1. Right to access: Individuals can request access to their personal data and information about how a business processes it;
  2. Right to rectification: Individuals can request the correction of inaccurate or incomplete data;
  3. Right to erasure (right to be forgotten): Individuals can request the deletion of their personal data under certain circumstances;
  4. Right to data portability: Individuals can request their data in a machine-readable format for transfer to another service provider; and
  5. Right to object: Individuals can object to processing their data for certain purposes, such as direct marketing.

Ensure your business has processes to handle these requests and respond within the stipulated time frames.

Key Takeaways

Data protection is a critical consideration for businesses operating in the UK, and any data protection breach can lead to a formal investigation by the Information Commissioner’s Office. Compliance with UK law is not only a legal requirement but also essential for maintaining customer trust and reputation. 

By mapping your data, conducting DPIAs, adhering to data minimisation and transparency principles, and understanding data subject rights, you can navigate data protection complexities and build a strong foundation for responsible data management in your UK business.

If you need legal assistance meeting essential data protection requirements in the UK, our experienced regulatory 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.

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Thomas Sutherland

Thomas Sutherland

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