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EU General Data Protection Regulation (GDPR) has recently entered into force.
This set of rules defines how to acquire, use and protect data and all related privacy matters. But, how this new EU provision is going to impact fashion startups and fashion companies? Let’s start with the good news!
This regulation has finally standardized the set of rules to be compliant with for all EU Member States, thus mitigating the current fragmentation of national data protection laws. This means less headaches for companies, but also for startups. In fact, often they target international markets since the first stages of their life, but they do not usually have the human resources to cope with legal issues.
On the other hand, the GDPR has introduced a heavier regulation which requires organizations to completely transform the way they collect, process, securely store, share and wipe personal data. Some of the major changes have occurred in the areas of data principles, requirements for the organizations, right for individuals and sanctions.
Privacy policies indeed will need to include mandatory information about the way in which data are processed and the statutory rights available to individuals. The wording must be clearly comprehensible to the target audience.
Moreover, GDPR makes it considerably easier for individuals to bring private claims against data controllers and processors. In particular: any person who has suffered “material or non-material damage” as a result of a breach of GDPR has the right to receive compensation. The inclusion of “non-material” damage means that individuals will be able to claim compensation for distress and hurt feelings even where they are not able to prove financial loss.
Finally, sanctions have become more severe and can be up to 4% of global turnover.
Even there is a 2-year transition period, all startups involved in e-commerce, IoT/wearable and innovative CRM software should be aware and start designing the data protection processes according to this new set of regulations. If you want to have more information, please read the blog post from “The Fashionable Lawyer” by DLA Piper.