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In today’s digital age, customers entrust businesses in the UK and worldwide with their personal information. This sensitive personal data, ranging from names and addresses to financial details, is a valuable asset that must be handled with care and responsibility. Failing to do so can result in significant legal and reputational circumstances. This article will explore why your business needs to understand how to handle customers’ personal information in compliance with UK law and in a way that builds trust with their clientele.
UK Data Protection Law
Before delving into how your business should handle customers’ personal information, it is crucial to understand the legal framework governing data protection in the UK.
The primary law addressing this matter is the Data Protection Act 2018, which incorporates the General Data Protection Regulation (‘GDPR’). The GDPR is well-known for providing numerous, complex obligations concerning obtaining, handling and storing personal information on UK businesses.
The Information Commissioner’s Office (‘ICO‘) exists to oversee and enforce data protection regulations in the UK. They can launch formal investigations into alleged data protection breaches.
Let us explore various data protection obligations below.
This factsheet sets out how your business can become GDPR compliant.
1. Collecting Data
The first step in responsibly handling customers’ personal information is to ensure UK GDPR compliance by collecting it lawfully and transparently.
You should obtain appropriate consent from individuals before collecting their personal data, which usually involves ensuring they understand how you will use their information. For example, you should specify the purpose for which you are collecting data and avoid collecting more information than is necessary for the intended purpose.
Additionally, if your business interacts with children under the age of 13, it should obtain parental consent for any data collection.
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2. Storing Data
Once your business’ data controllers have collected customer data, they must store it securely. For example, you should implement robust security measures to protect data from unauthorised access, including:
- encryption;
- access controls; and
- regular security audits.
Finally, you should only store sensitive data for as long as necessary for the purpose for which it was collected. Some UK businesses instruct expert lawyers to create data retention policies to ensure they avoid keeping data for too long.
3. Handling Data Subject Access Requests (‘DSARs’)
Under the GDPR, individuals have the right to request access to their personal data held by your business. It is crucial to have a process in place to handle these requests efficiently.
Your business should recognise and respond to all DSARs promptly, usually within one month, and provide the requested information free of charge. Ensure you verify the identity of the individual making the request prior to providing the information.
It is essential to be transparent about how you process and store data. Likewise, you must inform individuals of their GDPR rights regarding their personal information. Most businesses will do so by way of a privacy policy or data protection policy.
4. Data Breach Response
The GDPR requires your business to take swift and effective action in the event of a data breach.
A data breach involves any breach of security leading to the accidental or unlawful destruction, loss or unauthorised access to personal information. A typical example would be a cyber-attack against your company’s digital database.
Upon becoming aware of such a data breach, you should notify the ICO and affected individuals within 72 hours. The only exception is where the breach is unlikely to risk individuals’ rights and freedoms. Your business should obtain legal advice if this situation arises.
You should then conduct a thorough investigation to determine the cause and scope of the breach. Following this, ensure you take steps to mitigate its impact and prevent further unauthorised access.
Key Takeaways
Handling customers’ personal information in the UK is not only a legal requirement but also a matter of trust and reputation. A data breach or mishandling of personal data can have severe consequences for your business. Therefore, following lawful and transparent data collection principles, secure data storage, and responsible data handling are paramount.
If you need legal assistance ensuring the safe handling of personal information by your business, 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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