© Copyright Acquisition International 2025 - All Rights Reserved.

Article Image - GDPR: The Five Most Risky Legal Misconceptions
Posted 4th May 2018

GDPR: The Five Most Risky Legal Misconceptions

Despite being one of the most widely debated regulatory changes to have hit organisations in recent years, only 7% of companies are “fully prepared” for the impending implementation of GDPR, and a massive 60% are in real danger of missing the deadline for compliance, according to a study by Crowd Re

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

GDPR: The Five Most Risky Legal Misconceptions
Image

GDPR: The Five Most Risky Legal Misconceptions

Despite being one of the most widely debated regulatory changes to have hit organisations in recent years, only 7% of companies are “fully prepared” for the impending implementation of GDPR, and a massive 60% are in real danger of missing the deadline for compliance, according to a study by Crowd Research Partners.

With some of the biggest regulatory fines in history on the table, plus the risk of enormous reputational damage and adverse publicity for those who make serious breaches, this is not something to be taken lightly. Barristers-at-Law, Quentin Hunt and Dean Armstrong QC (co-author of Cyber Security- Law and Practice) examine some of the most common misconceptions, what they could mean for you and your organisation, and how to avoid seriously detrimental penalties.

 

1.       It’s not just about the fine

One of the biggest GDPR headlines is the scale of the fines that could be imposed on those who don’t get the regulations right. Such fines are likely to be used as a last resort, but with certain infringements carrying a penalty of up to €20 million, or 4% of worldwide annual turnover – whichever is higher – the financial risk is hefty. The circumstances, such as the nature, gravity and duration of the infringement, will dictate the amount – but the true cost of any major breach doesn’t end there. As the privacy scandal that has engulfed Facebook has shown, the reputational damage of not handling data appropriately can be even higher. In the first 24 hours after the news broke, some £25 billion was wiped from the social media platform’s share value. And the fallout continues with other channels scrambling to make their privacy policies clear to users. Extremely serious breaches could even generate the prospect of a class action against the offending company.

2.       The issue is broader than the European Union

One of the biggest misunderstandings in this area is that GDPR is confined to companies that are physically based inside the EU. Essentially, any company that wants to do business with EU customers – be it by selling goods or services, or by monitoring behaviour in some way – will have to meet the GDPR – or equivalent – standards of data protection. The legal reasons for this are bound in the way in which trade with the EU operates. There are three main routes to market here:

  • Similarly, bilateral trade deals usually require the non-EU country to apply laws that are at least as demanding as EU legislation. Here, we can look to Switzerland as the example.
  • Independent trade deals can be undertaken without the regulatory burden, but even then GDPR still requires the appliance of ‘adequate’ protection in order to allow EU members to pass information the non-EU country. 
  • As Jan Phillip Albrecht LL.M, Member of the European Parliament and Vice Chair of its Civil Liberties, Home Affairs and Justice Committee, wrote in 2016: “It is paramount to understand how GDPR will change not only the European data protection laws but nothing less than the whole world as we know it.”

 

3.       Interpretation is king

One of the main issues that any firm’s lawyers will have to grapple with is the fact that these are not clear-cut, black and white rules we’re dealing with. GDPR is principle-based regulation, and any investigation conducted by the Information Commissioner’s Office (ICO) will ask questions about whether ‘effective’ consent was obtained by the person who owns the data and whether that data is considered ‘current’. The interpretation of words like ‘effective’ and ‘current’ will be entirely at ICO’s discretion and would involve a legally-based assessment – making it considerably more difficult to determine whether your measures are sufficient without contextual and expert advice.

 

4.       This is a company-wide issue

This is one of the biggest changes ever seen in the way that businesses use, manage and protect personal data. Under GDPR, personal data belongs to the individual and businesses are simply its guardians. This is not something, therefore, that senior executives can just pass down to their compliance team. It’s going to require employee training for anyone who handles data. It’s going to require that businesses regularly scrutinise the kind of data they handle. It’s going to require a review of every employee and subcontractor contract. And it’s going to require the implementation of adequate mitigation processes, should employees find themselves handling a breach.

 

5.       Technology is not a “catch-all” solution

A lot of the focus on GDPR has concentrated on big data hacks, and there’s no doubt that companies need to be thinking about their cybersecurity measures. But, there are some risks that simply cannot be fixed by computers – consider, for example, confidential papers left in a taxi. The other seismic shift that GDPR causes is on technology itself. No longer will companies – for instance those offering loans – be able to use automated decision-making technology to offer or deny customers a service, such as a mortgage or a loan, based purely on an automated credit score. Technology will absolutely help companies protect themselves, but it should not be considered a panacea.

 

If you are concerned about whether you’re ready for GDPR, it may be worth taking legal advice, or, at the very least, asking yourself some key questions such as:

 

  • Can the data that we handle be anonymised?
  • Where is the data that we handle actually going?
  • Have I given my employees the correct information to prepare them for this change?
  • Are our contracts GDPR compliant?
  • Do we need to hire a data protection officer?
  • Should we seek specialist legal advice to ensure that we are compliant?
  • Do you have adequate processes in place should employees have to handle a serious data breach?

 

To get a quick overview of whether your GDPR compliance knowledge is up to speed, you can also take Quentin’s GDPR quiz.

 

If you wish to seek specialist legal advice on this subject you can contact Quentin Hunt here.

Categories: Legal


You Might Also Like
Read Full PostRead - Eye Icon
The New Face of Business
News
06/10/2022The New Face of Business

Since 2020, the commercial world has changed so much that it's almost impossible for many to remember what business was like in the previous century.

Read Full PostRead - Eye Icon
Employees: This Is How Tax Fraud Affects your Background Check in 2021
Finance
04/06/2021Employees: This Is How Tax Fraud Affects your Background Check in 2021

Paying taxes and filing returns is an important civic responsibility. While some employers may fail to make a background check on tax fraud, you wouldn't want to be on the wrong side of the law. Tax fraud occurs when you knowingly forge information on tax retu

Read Full PostRead - Eye Icon
Serving Up Five-Star Event Experiences for C-Level Decision Makers
Innovation
23/03/2020Serving Up Five-Star Event Experiences for C-Level Decision Makers

When a business needs to secure new leads and generate new work, there are few more appealing methods to garner a potential client’s attention than with dinner, a carefully-curated presentation, and plenty of networking. Offering some of the biggest corporat

Read Full PostRead - Eye Icon
Emerging Trends in Influencer Marketing Within Niche Markets
News
15/10/2024Emerging Trends in Influencer Marketing Within Niche Markets

The number of influencers rises yearly, primarily because microblogging and short-form platforms make it easy to pick up an account and start advertising.

Read Full PostRead - Eye Icon
The Best Practice
Leadership
29/09/2016The Best Practice

Based in Houston, Texas, Tumey L.L.P. now has offices in two different locations, with a second office located in the growing area of The Woodlands/North Houston, but what are the secrets behind the firm’s success?

Read Full PostRead - Eye Icon
PenFed Credit Union Announces Merger with Belvoir Federal Credit Union
M&A
31/03/2016PenFed Credit Union Announces Merger with Belvoir Federal Credit Union

PenFed Credit Union, nearly $20 billion in assets, 1.4 million members and headquartered in Alexandria, Virginia, announced that it will merge with the Woodbridge, Virginia headquartered Belvoir Federal Credit Union, which has $320 million in assets and more t

Read Full PostRead - Eye Icon
Flintfox Opens the Door to Europe With New Office
Strategy
05/05/2015Flintfox Opens the Door to Europe With New Office

Flintfox International, a world leader in trade relationship and promotion management solutions, announce the opening of its new Hertfordshire office, just outside of London in the United Kingdom.

Read Full PostRead - Eye Icon
Polaris Acquires Timbersled
M&A
23/04/2015Polaris Acquires Timbersled

Polaris Industries Inc. today announced the acquisition of Timbersled Products, Inc.

Read Full PostRead - Eye Icon
PaySaxas, Wise, and Others: Best Multi-Currency Business Accounts in 2024
News
30/10/2023PaySaxas, Wise, and Others: Best Multi-Currency Business Accounts in 2024

PaySaxas, Wise, and Others: Best Multi-Currency Business Accounts in 2024  Doing business outside one country and settlements with foreign partners require a solution — to open an international online current account. Such an account will help to make p



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow