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Compliance with Data Protection Regulations

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Who is a <strong>Data</strong> Processor?<br />

A natural or legal person could be a data processor if it does any of the following:<br />

<br />

<br />

Collect, hold or process personal data, but does not exercise responsibility for or<br />

control how the personal data is used.<br />

Have little or no freedom in the determination of what the data processing should entail.<br />

If you or your organisation process the personal information, but some other individual or<br />

organisation decides and is responsible for how you process that personal information, then<br />

the said individual or other organisation that determines how you process the personal<br />

information is the data controller, and your organisation is the data processor.<br />

It is possible for a person or entity to be both a data controller and a data processor, in respect<br />

of distinct sets of personal information.<br />

General <strong>Data</strong> <strong>Protection</strong> <strong>Regulations</strong> (GDPR)<br />

The General <strong>Data</strong> <strong>Protection</strong> Regulation (GDPR) standardizes data protection law across all<br />

28 EU countries and imposes strict new rules on controlling and processing personally<br />

identifiable information (PII). It also extends the protection of personal data and data protection<br />

rights by giving control back to EU residents. GDPR replaces the 1995 EU <strong>Data</strong> <strong>Protection</strong><br />

Directive, and goes into force on May 25, 2018.<br />

There are many essential items in the regulation, including increased fines, breach<br />

notifications, opt-in consent and responsibility for data transfer outside the EU. As a result, the<br />

impact to businesses is huge and will permanently change the way customer data is collected,<br />

stored, and used.<br />

GDPR applies to all organizations holding and processing EU resident’s personal data,<br />

regardless of geographic location. Many organisations outside the EU are unaware that the<br />

EU GDPR regulation applies to them as well. If an organization offers goods or services to, or<br />

monitors the behaviour of EU residents, it must meet GDPR compliance requirements.<br />

Fines for noncompliance are large. They can be as high as €20 million or 4% of a company’s<br />

total global revenue, whichever is larger. This is the maximum fine that can be imposed for<br />

the most serious violations, e.g. not having sufficient customer consent to process data or<br />

violating core Privacy by Design concepts. However, there is a tiered approach to fines, e.g.<br />

a company can be fined 2% for not having their records in order, not notifying the supervising<br />

authority and data subject about a breach, or not conducting an impact assessment. It is<br />

important to note that these rules apply to both controllers and processors.<br />

Next Steps<br />

Your company must as a matter of urgency determine if it is a data controller or processor and<br />

take steps to comply <strong>with</strong> the <strong>Data</strong> <strong>Protection</strong> Act, 2012 (Act 843).<br />

We have included information on the GDPR because we are aware that you offer services to<br />

European airlines and may process personal information of EU citizens from time to time.<br />

Steps must be taken to comply <strong>with</strong> the GDPR to avoid possible liability arising from any<br />

breach of the regulations when it comes into force on May 25, 2018.<br />

Should you have any data protection queries, please contact Griffin Legal here.<br />

Likewise, if you require assistance drafting GDPR compliant contracts, please contact<br />

a member of Griffin Corporate’s Commercial Transaction team here.

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