Last May 25, 2018, the rules about data collection have changed, and all businesses and companies that deal with EU clients have been affected.
The General Data Protection Regulation (GDPR) that the European Union (EU) implemented changed the way businesses collect, store, and use customer data. Since then, the majority of websites are asking for online users for approval to collect cookies and review its updated privacy policies. This means that it gives internet users greater control over their personal data. Aside from that, the privacy regulation also protects and secures all their information, giving them the assurance and confidence each time they access various websites.
The privacy regulation does not only affect companies that operate across the EU and EEA region. It also applies to all companies worldwide which engage in data collection about citizens in Europe.
But while the GDPR obviously favors online users, many businesses are not happy and about it. This is because GDPR aims to give online users greater power over their data but less power to organizations that do data collection and use the information they have in exchange for money.
When businesses fail to comply with the requirements set by the GDPR, they have to pay the potential fine that costs up to €21 million (approximately $24.6 million) or four percent of annual turnover, whichever is greater.
The penalty itself creates fear for many businesses worldwide, most especially for small businesses that do not have the capacity to adhere to strict standards of the regulation. In fact, a global study from the software company Veritas Technology revealed that 86 percent of organizations worldwide expressed their concerns about GDPR. According to these organizations, this recent privacy regulation could negatively affect their business. Worst, it could even put them out of business.
The impact of GDPR to businesses concerned with data collection
Basically, the GDPR will limit the capacity of organizations that do data collection. Because the said regulation gives online users greater control over their data, they have the option not to retain any of their information after visiting a site. This, in turn, will lessen the leads or information that data collection companies can retain and use for their business.
If their business weakens due to their incapacity to do the very core of their organization, potential layoffs might happen. The staff reduction is also inevitable if in case they incurred financial penalties because they failed to comply with the rules set by the GDPR. If this happens, this might also affect the reputation of a company, with lots of customers losing their trust in the business that failed to comply with the GDPR.
Is GDPR an enemy?
Data collection has actually been a practice of many companies for several years now. Many people have jobs because of it. However, being too lenient about it can also compromise the data security of many people.
No, GDPR is not an enemy. In fact, it sides with the greater good — the betterment of the society we live in.
Online consumers now have the option to give companies their personal information. This very process promotes equality.
There’s also a brighter side for companies that do data collection: the leads they will get are those from people who are really interested and willing to know more about their company. This means that it will help them acquire more high-quality leads.
What businesses need to do is to adjust to the existing rule today. There needs to have a change in behavior, mindset, and strategy instead of simply living in the past. Because when they do that, things will eventually move forward.
