In 2018 European Union introduced GDPR – General Data Protection Regulation which lead to some issues connected with personal data processing. No matter if you’re running a big company, or you’re the CEO of a startup, you have to take care of GDPR.
In today’s article, we focus on GDPR in startups. We show why startups must care for that and how to do it right.
Personal data processing – what does that mean?
General Data Protection Regulation states that every European entrepreneur who performs any operations on data in connection with business activity processes personal data.
The field of your company, the size of the enterprise or whether you use the data in an automated way or on paper does not matter. It’s enough that you get any information, which lets you identify any natural person – mail or CV, you became an administrator of personal data, no matter if you use them or not.
As a startup, you probably take care of your business relation, you try to contact potential clients or investors. Maybe are you looking for employees? That all refers to GDPR. Additionally, if your startup has mobile apps, internet services or e-commerce, that’s sure that your product will get access to the personal data of internet users, for example. IP address.
7 rules on how to well process personal data
Collecting and using dates within company services or any projects makes that your company is the administrator of that data – you are responsible for ale duties connected with GDPR. Default of laws may result in punishment.
The main question is “How to process data to comply with the GDPR?”. GPDR Act writes about the correct data processing. Despite rules and tips, you find specific requirements, which are punishable by a fine.
Legally, honestly and transparently
The main and most important rule which opens GDPR refers to processing data in a legal, honest and transparent way for the person to whom this data refers. Consequently, for the processing to be legally admissible, the controller must have at least one legal basis for the processing.
Specific, explicit and legitimate purpose
The administrator of personal data must give the purpose of collecting them. It is clear and very accurate. The purpose has to be precise before starting of processing the data, and the person who data is must be properly informed about it.
Only necessary data
Minimization of personal data is a fundamental rule which should be respected by every startup and company. Acquired data must be adequate, and used only for the necessary purpose. Data collection “just in case” is highly forbidden.
It’s important to remember that rule during projecting mobile apps, which whether installing process may have access to many personal data of users, for example, localisation, apart or contacts.
The principle of correctness
That rule focuses on the quality of data. Refers to writing, there is an obligation for taking all reasonable actions to ensure that the processed data is correct. For example complete and consistent with the actual state and, if necessary, updated, and incorrect data – immediately deleted or rectified.
GDPR – time of data processing
Personal data cannot be processed longer than the purpose requires. After goal realisation, the data has to be removed. The administrator’s task is to define the term of possible access to the data. Sometimes law determines the time.
Data security
Data security is related to the implementation of proper technical or organisational solutions for the right data security. It can be access password, data encryption, and security policy. Moreover, GDPR does not have a list of required security solutions. The data administrator makes that decision.
Compliance with the rules of the GDPR
This rule shows that every person who is delegating to deal with GDPR has to show, how the company respects all GDPR requirements. It means that when the startup will have control in terms of the lawfulness of data processing, then the entrepreneur will have to demonstrate that he has appropriate documentation of the actions taken and decisions that confirm the correctness of the processing with the requirements.
GDPR for startups is really crucial. Properly structuring data processing procedures within the company, or for the envisioned product, service, or technology right from the outset, fosters the appropriate project advancement and yields a favourable impression among potential investors and clients.
If you have any questions about the startup, write to us! In your free time, discover our other article or listen to our podcast!