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GDPR: implications for Canadian and US companies

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The GDPR also affects Canadian and American companies that handle personal data of European citizens, thus creating consequences for these companies.

The General Data Protection Regulation (GDPR) is a set of rules enacted by the European Union to protect the personal data of European citizens.

The GDPR aims to harmonise the rules in Europe on the protection of personal data and to strengthen the rights of data subjects and the obligations of data controllers and their processors. Adopted on 27 April 2016, it is directly applicable throughout Europe from 25 May 2018. This regulation also has implications for Canadian and US companies that process personal data of European citizens.

Ask yourself the right questions

The first step in determining whether the GDPR applies to your Canadian or US business is to ask the right questions. If you are advertising your services to people in the EU via your website, there are a few things you need to ask yourself:

  • Does your site accept payments in euros or other European currencies?
  • Is your site available in several languages?
  • Can users fill in contact forms, apply for jobs, subscribe to newsletters, etc.?
  • Does your site have a European domain name (e.g. .be, .lu, .de, etc.)?
  • Does your site allow tracking of user behaviour (cookies)?

If you have employees, customers, investors or partners in the EU, the GDPR also applies to your Canadian or US business. Finally, if you are a subcontractor for a company in the EU, you must also comply with the GDPR.

Impact on Canadian and US companies

The GDPR has a significant impact on Canadian and American businesses.

The GDPR applies in particular to the processing of personal data of individuals located in the EU by non-EU controllers or processors, such as Canada or the USA.

In particular, the GDPR applies where the processing activities concern:

  • the supply of goods or services to such data subjects within the EU, whether or not payment is requested by them;
  • monitoring the behaviour of such persons if it takes place within the EU.

Steps to take if the GDPR applies to your business

If the GDPR applies to your Canadian or US business, it is important to take the following steps to ensure compliance:

  • Reviewing for compliance: It is important to understand how personal data is collected, processed and stored in the EU.

Consequences of not complying with the GDPR for a Canadian or American company

If a Canadian or US company processes personal data of individuals located in the EU without complying with the GDPR, it may be subject to heavy financial penalties. Indeed, supervisory authorities have the power to impose administrative fines of up to €20 million or 4% of the company’s annual worldwide turnover, whichever is higher.

In addition, non-compliance can also lead to a loss of trust from customers and business partners, which can damage a company’s reputation and growth. It is therefore essential to take the GDPR rules seriously and ensure that your business is compliant.

How to ensure compliance with the GDPR?

What are the effective ways to comply with the GDPR?

Privacy is a growing concern for people around the world, and the GDPR is one of the strictest European regulations on personal data protection.

Canadian and US companies that process personal data of users located in the European Union should therefore take this issue seriously and put in place the necessary measures to protect the privacy of these individuals. Here are some steps to take:

  1. Ensure that all personal data is processed in a transparent and lawful manner, and that data subjects have given their explicit consent to the processing of their data.
  2. Appoint a Data Protection Officer (DPO) or Data Protection Officer to oversee data processing activities and ensure compliance with the GDPR.
  3. Appoint a GDPR representative in a European country if you process personal data of individuals located in the EU.
  4. Have clear and precise privacy policies and data processing agreements in place that describe the security measures taken to protect personal data.
  5. Ensure that all personal data is kept secure and that only authorised persons have access to the data.
  6. Put in place data breach response procedures to report and respond to security incidents quickly.

To ensure this compliance, companies can take several important steps, such as:

  • appoint a Data Protection Officer (DPO) or a data protection officer,
  • appoint a GDPR representative in a European country and put in place technical and organisational measures to ensure the security of personal data.

Read more on the same subject:

GDPR: the data protection representative

Compliance with the GDPR is a legal obligation for all companies that process personal data of individuals located in the European Union, whether or not they are established in an EU Member State. The websites of Canadian and American companies that collect personal data from individuals located in the European Union must therefore comply with the GDPR, or face financial penalties in the event of a breach.

What are the penalties for Canadian and US companies?

Canadian and US companies that collect personal data from individuals in the EU must comply with these rules or face significant financial penalties for violations.

The penalties for Canadian and US companies that fail to comply with the GDPR can be very severe. Indeed, European supervisory authorities have the power to impose administrative fines of up to €20 million or 4% of the company’s annual global turnover, whichever is higher. These fines are much higher than the maximum fines under data protection laws in many countries, including the US and Canada.

It is important to note that these sanctions can apply to controllers and processors, whether or not they are located in the EU. Therefore, if a Canadian or American company processes personal data of individuals located in the EU, it is subject to the same obligations and risks of sanctions as European companies.

It is therefore crucial for Canadian and U.S. companies that process personal data of individuals located in the European Union to understand the implications of the GDPR and to take the necessary steps to comply with its requirements.

Read more on the same subject:

What are the penalties for non-compliance with the GDPR?

In conclusion, the GDPR is an important piece of legislation to protect the personal data of individuals in the EU. Canadian and U.S. companies that process personal data of individuals located in the EU must comply with these rules. By following the recommended steps to ensure compliance with the GDPR, businesses can protect their customers’ personal data and avoid significant financial penalties.

Turn to an expert like ASD Group to outsource your GDPR issues in the European Union. ASD Group will provide you with GDPR specialists through its network of agencies and partners, who will take care of your representation needs and help you to comply with the rules in force, whether it be for :

Contact our experts !

ASD Group, your preferred expert contact in international development, VAT and international taxes, customs operations, social regulations and business strategy.

ASD Group works for you using the latest software technologies available and the advanced skills of our teams. Contact us for more information!

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