Table of Contents
In Short
- Retailers must comply with UK GDPR when collecting and storing personal data, and report serious breaches to the ICO within 72 hours.
- Risks can arise from cyber-attacks, staff errors, and poor data handling processes.
- You should have a breach response plan, strong data security measures, and regular staff training in place.
Tips for Businesses
Audit how you collect and store customer data, and make sure only those who need access have it. Train staff to spot risks and respond to breaches. Have a clear plan ready and act quickly if something goes wrong. Legal advice can help you navigate reporting duties and limit further damage.
The retail sector can be a big target for data breaches, particularly from cyber attacks where criminals try to gain access to personal information, such as financial information to commit identity theft. As a retail business that collects and processes a significant range of personal data, you have legal responsibilities to keep that data safe and secure. Data breaches can affect retail companies of all sizes (from small online shops to large chains). When a breach happens, it can cause legal risks and harm your customer relationships and your reputation. Retailers often hold large amounts of personal data, including contact details, payment information, and order history. Whether a data breach stems from a cyber-attack, a mistake by a staff member, or a weak process, what matters is how your retail business can respond effectively to reduce further risk. This article explores your legal duties under UK data protection law and how your business can manage risks around data breaches.
What Does the Law Expect Of Your Business?
Your business must comply with the UK General Data Protection Regulation (UK GDPR) and the Data Protection Act 2018 if you collect personal data. These laws apply when you process personal data, whether running a local shop or managing a high-volume e-commerce store.
A personal data breach is a security breach that leads to the accidental or unlawful destruction, loss, alteration, unauthorised disclosure of, or access to personal data. This might occur because of a system fault, a phishing attack, a stolen device, or a team member accidentally sending information to the wrong person.
Suppose a breach is likely to result in a risk to the rights and freedoms of individuals. In that case, your business must notify the Information Commissioner’s Office (ICO) without undue delay and within 72 hours. If the breach creates a high risk, you also need to contact the individuals affected. If you miss these steps, you could face penalties, complaints, and reputational harm.
How May the Retail Sector Face Significant Risks?
Retailers typically collect personal data across many different touchpoints. For instance, you might gather it through checkouts, loyalty schemes, email signups, payment platforms, or third-party apps. This gives you more opportunities to connect with customers but means you typically collect a lot of personal data. Where you operate online, cyber criminals may be more likely to target your business to seek details they could exploit, for example, customer payment details.
Cyber attackers can seek to target retail businesses because they store large amounts of customer data. But even without a targeted attack, everyday risks can lead to breaches. An untrained employee might click a suspicious link, or devices with customer data may go missing. These are all realistic and common risks for retail businesses.
In recent years, the ICO has taken action against several retailers, highlighting the importance of keeping data secure to avoid data breaches and knowing how to handle violations correctly.
Continue reading this article below the formHow Can Your Retail Business Reduce the Risk of a Breach?
You can reduce risk by reviewing how your business collects, stores, and uses customer data. This includes looking at your online systems, checkout process, loyalty tools, in-store tech, and supplier access. You should understand who has access to data, how you protect it, and where vulnerabilities might exist.
You can take various practical steps to help prevent risk. For example, keep your systems current, use two-factor authentication, encrypt sensitive data, and limit access to people who need it for their roles.
If a third party processes personal data on your behalf, you must have a written contract that complies with Article 28 of the UK GDPR. You should ensure that any such third parties have rigorous security measures to protect personal data.
What Should Your Retail Business Do If a Breach Happens?
In addition to trying to prevent a data breach, you should make sure you are fully prepared to respond to one.
Your business should create a clear breach response plan. That plan should explain what happens when something goes wrong – who takes the lead, who needs to be notified, and how to record your steps.
After the immediate steps, consider how to prevent it from happening again. If you have cyber insurance, contact your insurer immediately, too.
Tackling Data Breaches
You should also consider how to tackle data breaches impacting different systems and platforms so you are prepared on all fronts.
Legal advice is also essential, and you should always seek it if you are unsure about your obligations. If you are unsure whether to report a breach or need support with remedial action after a breach, a data protection lawyer can help you make the right decisions quickly. This support could reduce risk and help you manage the consequences more effectively.
This factsheet sets out how your business can become GDPR compliant.
Why Does Staff Training Matter?
Many breaches start with simple errors that could have been avoided. That is why regular staff training can make a big difference. Everyone who handles personal data in your business should understand what counts as a breach and how to respond. Training should be practical and relevant to the roles your retail team performs.
The UK GDPR requires your business to take organisational measures to ensure and demonstrate compliance. Regular staff training is one such measure.
Key Takeaways
Where your retail business collects or processes personal data, you have mandatory legal duties to protect it. Data breaches can lead to fines, legal claims, and lost customer trust. But with preparation, transparent processes, and the proper support, you can reduce risk, respond correctly and help mitigate further damage.
If you need legal advice on compliance with the UK GDPR as a retailer, 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
You must report breaches that are likely to result in a risk to individuals’ rights and freedoms – not all breaches. But you should document all breaches, even if you decide not to report them.
You can take various steps. For instance, train your team regularly on data protection, limit access to personal data, keep your systems secure and up to date, and check if your suppliers meet your security expectations when sharing data with them.
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