Sam was tired of getting promotional emails in his inbox. He kept deleting them every day, but the next day the cycle repeated, and the inbox was full. He had no idea why he kept getting these emails, even though he doesn’t remember subscribing to them. Further, they didn’t stop even after choosing the unsubscribing option. Sounds familiar, doesn’t it?
Well, we get these emails whenever we sign-up for a new online service or website. We would come across these familiar messages but never take heed of them as our primary intent would be signing up for their services. Below are some lines that are permanent fixtures when signing up online:
- I would like to receive marketing emails on discounts, promotions, offers, and other information about the product
- Do not like our emailers? Click here to unsubscribe
- We may share your data with our third-party partners to bring you personalized offers
- I agree to receive monthly newsletters, blogs, or the latest stories
- Understand our usage of cookie data and how we partner with analytics service providers and social media
Now, if you are wondering why they are a permanent fixture, it’s because they are mandatory by the GDPR guidelines.
GDPR is the General Data Protection Regulation that came into practice to protect the individual’s privacy online. In simple terms, it is a list of data privacy rules and guidelines to safeguard customer data.
It aims to provide consumers significant control over their data. At the same time, it serves as a valuable framework for organizations when processing customer data like name, address, photos, IP address, genetic or biometric information.
The Beginning
The European Union (EU) implemented the General Data Protection Regulation (GDPR) on 25th May 2018. The regulation attempted to limit data exploitation and to gain people’s trust in the digital economy.
If a Non-EU area engages in transactions or data exchanges with an EU region, the former needs to follow GDPR. To elaborate, all the Indian companies working in IT, international e-commerce, and outsourcing also fall under GDPR since they deal with data processing. These regulations can even change the ways these companies do business with customers. Organizations should be aware of the GDPR’s laws, including the increased costs of managing and protecting customer information.
For a successful implementation of data security measures, organizations must reflect the interest the customer has about his/her data in their sophisticated data collection methods.
When can a company record a customer’s information?
- The customer consents to store information for as long as it is necessary
- The customer can access and rectify the information at any given time
- Companies store information on a commonly used format like CSV
- They explain to customers how their data is processed and used, for how long, and by whom
- They can delete customer information when the user thinks it is not necessary
- They inform customers of data breaches within 72 hours of the breach detection
- They notify customers if their data is vulnerable to a data breach
Why the need for this regulation?
Imagine knowing that all your personal information can be found with a single click. All your details can be traced, documented, and used for a third party’s gain. For instance, all the information you share online isn’t entirely safe, and the internet still hosts some confidential information.
So, GDPR offers organizations a clear pathway of dealing with sensitive customer information while at the same time protecting the customer’s right to privacy.
Subscribe to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.
Follow us on LinkedIn and Twitter for insightful fintech tales curated for curious minds like you.
0 Comments