How can my business comply with GDPR and data privacy?

These days, doing business has become far trickier. We're not only worrying about our products or services, but also have to deal with the increasingly regulated landscape in which we operate. Data privacy is one of those areas that need to be managed, but many business owners find it particularly challenging—understanding the differences between regulations, knowing how to approach it, and figuring out how to manage and monitor it effectively.

At Lawyerlink, we find the best way to navigate data privacy regulations is by breaking them down into practical steps that can help you confidently manage data privacy and ensure your business is compliant.

In this blog, we'll cover the basics of privacy regulations, why it matters, and what practical measures you can take to ensure your business is compliant. 

What is GDPR and why does it matter?

The General Data Protection Regulation (GDPR) is a comprehensive set of data privacy rules that apply to businesses operating in the UK or EU that process personal data. Whether you're storing customer email addresses, processing employee information, or handling supplier details, GDPR affects how you collect, store, and use personal data.

Non-compliance can lead to serious financial penalties—fines can reach up to €20 million or 4% of your annual global turnover, whichever is higher. Beyond fines, non-compliance can damage your reputation and erode trust. Today, privacy is a key concern for both customers and employees, and maintaining it is about keeping a promise—one that shows you value their data and their trust.

What other data and privacy regulations are there?

In addition to GDPR, businesses in the UK must also comply with the Data Protection Act 2018. This Act supplements GDPR by providing additional rules and exemptions specific to the UK, ensuring that data protection regulations are effectively enforced post-Brexit. The Data Protection Act 2018 sets out how personal data can be lawfully processed and includes specific provisions for areas such as law enforcement processing, children’s data, and research purposes.

The Data Protection Act works alongside GDPR to ensure that personal data is handled responsibly and in compliance with UK-specific legal requirements. It’s important for SMEs to understand how these two regulations interact and to ensure that their data practices meet both sets of standards.

What does data processing actually mean?

Data processing is really just a fancy way of describing anything you do with personal data. Whether you're collecting it, storing it, using it, or even deleting it—it's all considered processing. If you handle customer information in any way, you are processing data, and that means you need to make sure you're doing it properly and in line with data protection rules. If you're the one deciding how and why the data is processed, you are a 'data controller.' If you're processing data on someone else's behalf, you are a 'data processor.' Both roles have responsibilities under GDPR.

Key GDPR principles

To stay compliant, you have to understand and apply the key principles of GDPR:

• Lawfulness, fairness, and transparency
  
  

Personal data must be processed lawfully, fairly, and in a transparent manner. Individuals should be informed about what data you’re collecting, why you’re collecting it, and how it will be used. For example, if you collect email addresses for a mailing list, you should clearly state that it will be used to send promotional content and how often they will hear from you.

• Purpose limitation

Data must be collected for specified, legitimate purposes, and not further processed in a manner incompatible with those purposes. For example, if you collect customer data for order fulfillment, you cannot later use that data for targeted advertising without additional consent.

• Data minimisation

Only collect the data that is necessary. For instance, if someone is signing up for your newsletter, you don’t need their home address. Similarly, if someone is filling out a contact form, asking only for essential information like name and email is better than requiring unnecessary details.

• Accuracy

Keep personal data accurate and up to date. If information changes, make sure your records are promptly updated. For example, if a customer informs you of a change of address, ensure the update is reflected across all systems to avoid errors.

• Storage limitation

Do not keep personal data longer than necessary. Once it is no longer needed, ensure it is securely deleted or anonymised. For instance, if a customer stops using your services, make sure to delete their data after a set retention period unless legally required to keep it.

• Integrity and confidentiality

Personal data must be protected against unauthorised access, breaches, and leaks. Implement strong security measures such as encryption and access control. 

• Accountability

You must be able to demonstrate compliance with GDPR. This means keeping records of your data processing activities and showing that you are following GDPR guidelines. For instance, keep logs of consent forms, privacy policies, and any changes made to how data is handled to prove compliance if needed.

Understanding customer and client rights under GDPR

GDPR places a strong emphasis on the rights of individuals, i.e. your customers and clients. As a business, you must ensure these rights can be exercised.

• Right to be informed

These rights include being informed about what data you’re collecting, why you’re collecting it, and how it will be used

• Right of access

Your customers and clients have the right to request a copy of the personal data you hold about them, which must be provided within one month.

• Right to rectification

If any of their data is inaccurate or incomplete, they can request that you correct it

• Right to erasure (right to be forgotten)

Customers and clients can request that their personal data be deleted. While this is an important individual right, in certain circumstances it might not be possible. As an example, businesses are often required to retain financial records, including invoices and tax-related documents, for a specific period, usually up to six years in the UK. This means if a customer requests that all their data be deleted, you may still need to retain tax-related information to comply with legal obligations. 

There are a few areas where data may not be erased, so as part of your privacy management, you need to know which records have to be kept in your specific industry. 

• Right to restrict processing

They can also request limits on how their data is used.

• Right to data portability

They may request their data in a commonly used format to transfer to another service provider.

• Right to object

Your customers and clients can object to their data being used for specific purposes, such as marketing. 

Steps to ensure GDPR compliance

• Obtain clear consent

Before collecting personal data, make sure you have explicit consent from individuals. Consent should be clear, specific, and easily understood—and individuals must have the option to withdraw their consent at any time.

• Update your privacy policy

Your privacy policy must be clear, concise, and easy to understand. It should explain what data you collect, why you collect it, how long you’ll keep it, and how individuals can exercise their rights. Make this policy easily accessible to both employees and customers.

• Secure personal data

Protecting personal data is critical. Implement robust security measures like encryption, strong passwords, and restricted access to sensitive data. Regularly review your security measures to ensure they are up to date and effective.

• Appoint a data protection officer (DPO)

If your business processes large amounts of personal data, you may need to appoint a data protection officer (DPO) to oversee GDPR compliance. Even if it’s not mandatory, assigning someone to manage data protection is a good practice to help you stay on track.

• Create data processing agreements

If you work with third-party services, such as cloud storage or payment processors, ensure you have data processing agreements in place. These agreements confirm that your service providers comply with GDPR standards when handling your data.

• Develop a data breach response plan

Data breaches can happen despite your best efforts. Prepare for this by developing a data breach response plan. If a breach occurs, you must notify the Information Commissioner’s Office (ICO) within 72 hours. If the breach poses a high risk to individuals, they must also be informed. Having a plan in place will help you respond quickly and effectively.

Checklist for GDPR compliance

✔️ Have you obtained explicit consent for collecting personal data?

✔️ Is your privacy policy clear, transparent, and easily accessible?

✔️ Are you respecting individuals' rights, including the right to access, rectify, and delete data?

✔️ Have you implemented strong technical safeguards to protect personal data?

✔️ Are data processing agreements in place with third-party providers?

✔️ Have you registered with the ICO and are paying the necessary data protection fee?

✔️ Do you have a data breach response plan, and are you aware of the 72-hour reporting requirement?