GDPR vs. Privacy Shield
Comparing GDPR and Privacy Shield: What You Need to Know
As businesses continue to operate on a global scale, ensuring the protection of personal data is essential. However, with different data protection laws in different regions, it can be difficult to know which regulations to follow. In this article, we will compare two such regulations, the General Data Protection Regulation (GDPR) and the Privacy Shield, to help you understand their differences and determine which one applies to your business.
What is GDPR?
The General Data Protection Regulation (GDPR) is a European Union (EU) regulation that came into effect in May 2018. The GDPR sets out rules for the processing of personal data by businesses operating within the EU, as well as by businesses that process the personal data of individuals located in the EU.
The GDPR requires businesses to obtain explicit consent from individuals before collecting and processing their personal data, and to ensure that personal data is processed fairly, lawfully, and transparently. The regulation also gives individuals the right to access their personal data and request its deletion, and requires businesses to notify the relevant authorities in the event of a data breach.
What is Privacy Shield?
Privacy Shield is a data protection framework that was designed to allow for the transfer of personal data between the EU and the United States (US). It was created as a replacement for the previous Safe Harbor framework, which was deemed inadequate by the European Court of Justice in 2015.
The Privacy Shield sets out rules for US businesses to follow when processing the personal data of individuals located in the EU, and requires businesses to provide individuals with certain rights, such as the right to access their personal data and the right to correct or delete it.
Key Differences Between GDPR and Privacy Shield
While both the GDPR and Privacy Shield are aimed at protecting personal data, there are some key differences between the two regulations. Here are some of the most important:
- Scope: The GDPR applies to businesses operating within the EU and to businesses that process the personal data of individuals located in the EU. Privacy Shield, on the other hand, only applies to US businesses that process the personal data of individuals located in the EU.
- Consent: The GDPR requires businesses to obtain explicit consent from individuals before collecting and processing their personal data, while Privacy Shield only requires businesses to provide individuals with a mechanism to opt-out of the collection and processing of their personal data.
- Enforcement: The GDPR is enforced by national data protection authorities in each EU member state, while Privacy Shield is enforced by the US Department of Commerce and the Federal Trade Commission.
- Penalties: The GDPR allows for fines of up to 4% of a business’s annual global turnover or €20 million, whichever is greater, for non-compliance. Privacy Shield, on the other hand, has no specific penalties for non-compliance.
Which One Should You Choose?
If your business processes the personal data of individuals located in the EU, you will need to comply with the GDPR. The GDPR is a more comprehensive and stringent regulation than Privacy Shield, and provides individuals with more extensive rights and protections.
If your business is based in the US and does not process the personal data of individuals located in the EU, you do not need to comply with the GDPR. However, you may wish to participate in Privacy Shield to demonstrate your commitment to data protection and facilitate the transfer of personal data between the EU and the US.