Data Protection Fundamentals That All Companies Need to Know

The Personal Data Protection Act (PDPA) entails a long list of regulations for the handling of consumer data. The fundamentals of the Personal Data Protection Act will help align existing data protection protocols while increasing the levels of personal data protection for individuals. 

All of the reforms and restructurings going into effect are designed to help users gain a greater level of control over their personal data, while offering more transparency throughout the data collection, management, and use process.

These new laws will help bring existing legislation up to par with the connected digital age we now live in. Since data collection is such a normal and substantial aspect of our lives both on a personal and business level, the fundamentals of the Personal Data Protection Act helps to set the standards for data-related laws moving forward.

What happens If You Didn’t Comply?

Failure to comply with PDPA can result in some pretty hefty fines. The fines will range up to 4 percent of the offending organization’s annual revenue. 

The heftier fines are reserved for cases in which data infringement is committed, procedures for handling and using data are not set in place, unauthorized data transfer occurs, or requests are ignored for user data access.

The lower level fines still apply, however, to the misuse of data, but just on a minor scale. For instance, failing to report a recent data breach, failing to execute the correct data protection protocols, or failing to notify your consumers about the breach.

The extent of the fines your organization will receive is determined by how severe the breach is, and the compliance actions you have taken as a result of the breach.

How PDPA Impacts Your Businesses

PDPA will bring about a new level of transparency into data collection, management, storage, and usage. If your organization is traditionally secretive about its data, you will need to make a very dramatic turnaround in your data protocols.

For most companies, PDPA will create the need for greater compliance spending, not only in ensuring your operational practices are up to the latest standards, but also ensuring your existing technology is optimized to the latest protocols. Plus, some organizations and companies will have to hire a compliance officer or a PDPA officer to help monitor and manage any data collection processes.

Nevertheless, these additional expenses should not be solely viewed as an expense. Instead, it can be seen as an investment that will help to instill trust and confidence in the eyes of your consumers.

Companies that misuse and abuse data privileges will start to be viewed less and less trustworthy in the eyes of the customers — especially if they are hit with those hefty, profit margin-busting fines. On the other hand, the companies that value data access and use of their customer’s personal data and see it as a privilege instead of an entitlement, will help to establish themselves as trustworthy businesses into the future.

PDPA is a complex topic, and although this article will help you to grasp the basics, you and your legal department will need to go through the fundamentals of the Personal Data Protection Act with a fine-toothed comb.


Leave a Reply

Your email address will not be published. Required fields are marked *