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Every business owner in England needs to be aware of the importance of data transparency. The Information Commissioner’s Office (ICO) guidance on the EU General Data Protection Regulation (GDPR) lists it as a vital duty of organisations in England. This is particularly the case because the ICO has powers to fine businesses up to £17.5m for GDPR violations. This article will explore the meaning of data transparency and why handling information in a transparent manner can benefit your business.
What is Data Transparency?
The ICO describes data transparency as a key data protection principle and summarises it as being ‘open and honest’ about what your business does with personal data. It states that data transparency is particularly important if the data processing is complicated or relates to children.
Overall, the ICO believes that it is in the public interest that businesses ensure complete transparency with their data subjects. The transparency principle focuses on providing meaningful information to individuals about your handling of their information.
The ICO details several ways your organisation can comply with the GDPR’s requirements regarding data transparency, which we will explore in more detail below.
1. Having a Suitable Privacy Policy
One of the most essential documents from a data transparency perspective is your business’s privacy policy. This is because it is the first port of call for customers and individuals to find out how you will handle their personal data.
A good privacy policy should provide the following information:
- the types of personal data your business collects and stores and why it does so;
- whether your organisation will share that personal data with third parties and, if so, why;
- how individuals can withdraw consent;
- whether your business has retention periods for information, after which it will delete data; and
- contact details of a person (usually a data protection officer) to whom individuals can complain.
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2. Providing Suitable Privacy Training to Staff
Many firms overlook the advantages of regular staff training in favour of having written documents. In reality, the ICO wants organisations to meet data transparency requirements through actions and words.
Whilst privacy training courses can vary, most will tackle the following topics:
- how to collect and store personal data in line with the GDPR;
- how to avoid unlawful disclosure of personal information to third parties (such as over the telephone to an individual absent verification of their identity);
- the best ways to securely record personal information on a computer system; and
- how best to inform individuals of your business’s data transparency measures and handle complaints.
Naturally, there is little point in having detailed policies if your staff are not confidently implementing them in practice. Hence, providing good training and ensuring refresher training at appropriate intervals is vital.
3. Carrying Out Data Privacy Reviews
Our data protection laws provide a three-tier approach to data transparency, which includes:
- having sufficient written materials, including a privacy policy;
- performing the right actions in practice through training staff; and
- reviewing your data transparency measures at suitable intervals.
In addition, you should carry out data transparency reviews. Usually, this involves reviewing whether your company follows the relevant wording within its privacy policy (and any other relevant documentation). You should take appropriate steps if your organisation is not meeting the relevant requirements. For example, this may include staff refresher training or a suitable change to your IT system.
However, even if your company meets the terms of the privacy policy wording, it is wise to ensure that the wording is up-to-date with the ICO’s current data protection guidelines. Naturally, all documents have a sensible shelf life before they require an update, and data protection documentation is no different.
Key Takeaways
The ICO places high importance on businesses providing clear and understandable information to individuals regarding using their data. Any failure to do so risks a hefty financial penalty of up to £17.5m from the ICO. Because of this, many business owners engage expert lawyers to draft and review their written data protection policies and continuously advise on best practices.
If you need help ensuring full compliance with data transparency standards, 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 UK Government created the ICO to enforce data protection rights against organisations operating in England. One of the main data protection principles prioritised by the ICO is being forthright and upfront about your reasoning for processing personal data.
Yes, the GDPR remains fully in place as of late 2022. Whilst the Government is currently making vague comments about changing data protection law, it largely remains the same as it was before Brexit.
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