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GDPR Compliance In ECommerce: 4 Years On

11:46 pm GMT

May 16, 2022

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Image credits: Fernando Arcos

The General Data Protection Regulation (GDPR) is a regulation of the European Union (EU) that became effective on May 25, 2018. The GDPR replaces the 1995 Data Protection Directive. It strengthens EU data protection rules by giving individuals more control over their personal data, and establishing new rights for individuals.

The GDPR applies to all organizations that process the personal data of individuals in the EU, regardless of whether the organization is based in the EU or not. Organizations that process the personal data of individuals in the EU must comply with the GDPR unless they can demonstrate that they meet certain conditions.

The Impact Of GDPR On Ecommerce

The General Data Protection Regulation (GDPR), which came into effect in May 2018, has had a significant impact on ecommerce. The regulation requires businesses to take steps to protect the personal data of EU citizens, including by implementing data protection measures and obtaining consent from individuals before collecting, using, or sharing their data.

Many ecommerce platforms have halted operations in the EU in order to comply with GDPR. For example, in October 2018, the online marketplace Etsy announced that it would shut down its operations in the EU in order to comply with GDPR. Similarly, in May 2019, the online marketplace eBay announced that it would suspend its operations in the EU in order to comply with GDPR.

Benefits Of GDPR Compliance For Ecommerce Businesses

Since the General Data Protection Regulation (GDPR) came into effect in May 2018, businesses have been scrambling to ensure their compliance with the new regulation. The GDPR imposes stringent requirements on how businesses must handle the personal data of their customers, including obtaining consent for data collection and storage, and providing clear and concise explanations of data processing activities.

For ecommerce businesses, the GDPR has brought both benefits and challenges. On the one hand, compliance with the GDPR has led to increased costs, as businesses have had to invest in new systems and processes to protect customer data. On the other hand, compliant businesses have seen a boost in their customer trust and loyalty, as customers appreciate the transparency and accountability that GDPR compliance brings.

Challenges Faced By Ecommerce Businesses Post-GDPR

Since the General Data Protection Regulation (GDPR) went into effect in May 2018, ecommerce businesses have faced a range of challenges in trying to comply with the stringent new regulations.

Perhaps the biggest challenge has been the increased cost of compliance, as businesses have had to invest in new systems and procedures to ensure they are collecting and storing data in a GDPR-compliant manner.

Another challenge has been the impact of GDPR on EU-based ecommerce platforms, which have had to suspend operations in some cases or make significant changes to how they operate in order to comply with the new regulations.

However, not all businesses have found GDPR to be a challenge.

Tips For Complying With GDPR In Ecommerce

The General Data Protection Regulation (GDPR) is a regulation in the European Union (EU) that became effective on May 25, 2018. The regulation imposes strict rules on how businesses must handle the personal data of EU citizens.

Businesses that collect, process, or store the personal data of EU citizens must comply with the GDPR unless they can demonstrate that they meet certain conditions. These conditions include having a representative in the EU, being subject to EU law, and using certain model clauses approved by the EU.

Businesses that do not comply with the GDPR can be fined up to 4% of their global annual revenue or €20 million (whichever is greater), whichever is greater.

Conclusion

Overall, while the GDPR has caused some headaches for businesses, it has also led to increased compliance costs and a heightened awareness of data privacy. This has in turn led to a more secure and trustworthy ecommerce environment for consumers.

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