The General Data Protection Regulation, or GDPR, comes into effect on 25 May 2018. It is a new, wide-sweeping data protection law that will set a high bar for global privacy rights and compliance. The GDPR will probably apply to you if your company is based in the EU or if you have customers or contacts in the EU.
The purpose of this guide is to give you details on how Vend is preparing for GDPR and to provide you with an overview of the new requirements to help you prepare for GDPR.
This guide is for informational purposes only, and should not be relied upon as legal advice. We encourage you to work with legal and other professional advisers to determine exactly how the GDPR may apply to your organization.
What is Vend doing to prepare for GDPR?
Here at Vend, we are excited about the strong data privacy and security principles that GDPR emphasizes. We are busy working both to ensure we are compliant with GDPR by 25 May 2018. We’ve been working on a bunch of things including:
- Reviewing and updating our internal data processes, procedures, data systems and documentation
- Continuing to invest in our security infrastructure
- Reviewing and updating our third party vendor contracts
Upcoming Tools and Features:
We are currently building tools and features to help our retailers comply with GDPR. We are able to share details of some these here which we expect release by the mid 2018. We will update this page as more details about new tools and features become available.
If you have customers in the EU and collect their data in Vend, under the new GDPR you're considered a 'data controller'. As a ‘data controller’ you have the responsibility to allow individuals to exercise their ‘right to object’ (individuals may object the use of their data for profiling or direct marketing activities) and ‘right to restrict processing’ (individuals may request the suppression of their personal data, which means that you may store the data but not use it).
Deletion Request Support:
We’re making sure delete means delete, helping you to honor requests related to the ‘right to be forgotten’ from users and customers. This will ensure that personal data relating to a user’s identifier is fully deleted from Vend upon request. For any content (i.e. sales, reports, etc) previously associated with a deleted user’s identifier, “Anonymous User” or “Anonymous Customer” will show instead.
To help you comply with the ‘right to object’ or ‘right to restrict’ related requests, any user’s identifier associated with a Delete action will automatically be placed on a suppression list. For any user’s identifier on the suppression list, we will block all incoming personal data pertaining to that user Id from being tracked by Vend and sent to integrations.
Additionally, we’ll soon be introducing and improving several security measures, including a stronger password policy, optional two-factor authentication and security event logs.
Current Product Capabilities
In addition to new tools and features Vend is building to assist our retailers to comply with GDPR, Vend already has some tools and features to assist you comply with other GDPR rights including rights to access, data portability and rectification. These include the following:
Data Exporting Tools:
To honor the ‘right to access’ (individuals have the right to access their data) and ‘right to data portability’ (individuals are able to obtain and reuse their personal data) that EU residents now have the rights to under the new GDPR, Vend allows you to export customer lists and sales ledgers in a CSV format. Check out this link for exporting options available in Vend. You can also set-up a Personal Token which interacts with Vend’s comprehensive API (See: https://docs.vendhq.com/v0.9/reference#authorisation) to retrieve personal data associated with a data subject supporting the access and portability rights.
Ability to Rectify Individual Data:
Under the GDPR, individuals have the ‘right to rectification’ which means that any personal data they deem inaccurate or incomplete, individuals have a right to correct it. Vend lets you to rectify all data associated with data subjects. You can do this inside the app under the navigation items ‘Users’ and ‘Customers’ respectively.
Data Processing Addendum:
We have prepared a Data Processing Addendum which has been pre-signed by Vend. Retailers based in the EU or with customers based in the EU, should sign this Data Processing Addendum. Instructions on how to complete this addendum will appear once you have entered your name and email address in this link.
By completing this addendum, you will be able to lawfully transfer EU personal data to Vend under GDPR.
Overview of GDPR
What is GDPR?
At its core, GDPR is a new set of rules designed to give citizens more control over their data. It aims to simplify the regulatory environment for business so both citizens and businesses can fully benefit from the digital economy.
Who does GDPR apply to?
The “extra-territorial” application of GDPR applies all organizations that process the personal data of EU residents or monitor individuals' behaviours conducted within the EU, regardless of the entity's location.
“Personal data” is broadly defined and means any information relating to an identified or identifiable natural person ('data subject'). Personal data can be a name, address, bank details, email address, posts on social media, or even an IP address or a cookie ID.
Sensitive personal data, such as health information or information that reveals a person’s racial or ethnic origin, will require even greater protection. You should not store data of this nature within your Vend account.
Regardless of whether or not you believe your business will be impacted by GDPR, GDPR and its underlying principles may still be important to you. European law tends to set the trend for international privacy regulation, and greater privacy awareness now may increase your competitive advantage in the future.
Controller vs Processor
GDPR outlines different requirements for Controllers (entities who determine the purposes and means of the processing of personal data) and Processors (entities who process personal data as directed by a Controller).
Controllers will retain primary responsibility for data protection (including, for example, the obligation to report data breaches to data protection authorities); although GDPR does place some direct responsibilities on the processor too. Therefore it is important to work out whether you are acting as a controller or a processor, and, as such, to understand your obligations.
In most circumstances, in the context of the Vend services, our customers are acting as the controller. Our customers, for example, decide what information is uploaded to their Vend account. Vend is acting as a processor by performing services for our customers using Vend.
Some of the key points to note in respect of GDPR include:
Data protection by design and default
Under the “privacy by design” requirement of GDPR, you will need to design compliant policies, procedures and systems at the outset of product development. The “privacy by default” principle will require that, by default, only personal data that is necessary for a specific purpose is to be processed.
Lawfulness of processing
You will need to ensure that all processing of data is based on a lawful ground for processing. These are consent, performance of a contract, legal obligation, protection of vital interests, tasks carried out in the public interest, or legitimate interest balanced against the fundamental rights of data subjects.
Under GDPR, you might need to obtain consent to process the personal data of your customers or change how you currently obtain that consent. In particular, GDPR says that consent must be "freely given, specific, informed and unambiguous." You will need to review existing consent mechanisms, to ensure they present genuine and granular choice.
GDPR includes specific parental-consent requirements when processing the personal data of users under the age of 16 (or lower depending on the country). You should consider whether parent consent is required and whether you need to change how you process customer data to either obtain parental consent or stop processing the date of customers under the age of 16.
Personal data breach notification
Data breaches must be notified to the relevant supervisory regulator as soon as possible, and in any event within 72 hours of the breach being identified. GDPR states that breaches that are unlikely to result in risks to individuals do not require reporting.
Data Protection Officer
Processors processing a significant volume of data, or processing ‘sensitive’ data, may be required to appoint a data protection officer (DPO). DPOs will be responsible for monitoring the data processing activities of the business and ensuring compliance with GDPR. It is expected that certain businesses may voluntarily appoint a DPO to help demonstrate an adoption of best practice procedures and strengthen any defence to regulatory investigation.
Enhanced rights for data subjects
EU citizens will have several important new rights under GDPR, including the right to be forgotten, the right to object, the right to rectification, the right of access, and the right of portability.
Non-compliance with GDPR can result in very high financial penalties. Organizations in breach of GDPR can be fined up to 4% of annual global turnover or €20 Million (whichever is greater).
Retailers should take steps to protect their business from hackers and fraudsters. Click here for action steps you can immediately implement in your business.
Further reading on GDPR
Need more information? Below are links to some helpful GDPR resources: