A step-by-step checklist to meet GDPR compliance requirements

Achieving and maintaining GDPR data compliance is crucial for any organization that handles personal data. The General Data Protection Regulation (GDPR) sets stringent data privacy and security standards that can impact businesses globally.

That’s why we’ve highlighted key GDPR requirements and created a detailed 13-step checklist to help you navigate the complexities of GDPR compliance requirements. By following these steps, your organization can protect personal data effectively, meet legal obligations, and foster customer trust.

What is the GDPR?

Coming into effect in May 2018, the GDPR is one of the world’s strictest consumer privacy and data security laws. It’s a key law for the European Union, designed to enhance control over individuals’ personal data and set strict data handling rules for companies and website owners. It requires organizations to have a valid legal basis for processing data, ensure consent is explicit and informed, and uphold individual rights, including access to and deletion of personal data.

What is GDPR compliance?

At its core, GDPR compliance means following the rules set out by the GDPR. 

This means that companies must take specific actions to protect personal data and respect individuals’ rights. GDPR compliance requirements include implementing measures to ensure that data is processed lawfully, fairly, and transparently.

It’s worth noting that compliance is not a one-time task; it requires ongoing effort. Organizations must regularly review their practices to ensure they remain compliant as regulations and technologies evolve.

What data is protected under the GDPR?

The GDPR protects personal data, which is any information that relates to an identified or identifiable person. This includes names, identification numbers, location data, and online identifiers.

Certain types of data, known as special categories, receive extra protection. This includes sensitive information like racial or ethnic origin, political opinions, religious beliefs, and health data. Organizations must handle this data with even greater care.

Who does the GDPR apply to?

Organizations need to know if the GDPR applies to them, especially when handling personal data. The GDPR has extraterritorial reach, applying not only to companies within the EU but also to those outside it that process the personal data of EU residents. 

More specifically, the GDPR applies to:

• Organizations in the EU: Any business or entity operating within the EU must comply with the GDPR, regardless of whether the data processing takes place in the EU or elsewhere. This includes companies, nonprofits, and public bodies.
• Non-EU organizations offering goods or services to EU residents: If a company outside the EU targets EU customers, it must follow GDPR compliance requirements. This means that businesses must be mindful of their marketing practices and how they engage with potential customers in the EU.
• Organizations monitoring the behavior of EU residents: This includes businesses that track online activities through cookies or similar technologies. If a company collects data on EU residents’ behavior, it falls under the GDPR’s jurisdiction.

Does the GDPR apply to US companies?

An organization that’s based in the United States and that only services American customers does not need to comply with the GDPR. However, if an American company has EU customers, they do have to comply. So if your US company:

• Has a presence in the EU: This doesn’t necessarily mean having a physical office. An establishment could be a representative or agent operating in the EU on behalf of the US company.
• Offers goods or services to EU residents: Many US-based ecommerce platforms, software-as-a-service providers, and digital content creators fall into this category. The key is whether there’s an intention to offer goods or services to EU residents, which might be evidenced by factors such as accepting EU currencies or using EU languages on their website.
• Monitors the behavior of EU residents: This is particularly relevant for US tech companies that operate social media platforms, provide analytics services, or engage in online advertising. If a US company tracks the online behavior of EU residents — through cookies, for instance — they would need to comply with the GDPR.

What are the key requirements of the GDPR?

To achieve and maintain GDPR compliance, companies must implement specific measures that cover various aspects of data collection, use, and protection. These rules are central to GDPR security compliance and affect how businesses operate.

Here are some of the key requirements that organizations must fulfill to achieve and maintain compliance:

• Lawful basis for processing: Organizations must identify and document a valid lawful basis (aka legal basis) for each processing activity. This involves carefully assessing why personal data is being processed and ensuring it falls under one of the six lawful bases outlined in the GDPR. In brief, these are: consent, contract, legal obligation, vital interests, public tasks, or legitimate interest.
• Consent: When using consent as a lawful basis, organizations must implement robust mechanisms to inform data subjects, as well as obtain, record, and manage their explicit consent. This includes ensuring consent is freely given, specific, informed, and unambiguous, with clear, easily accessible options for withdrawing consent at any time. This is particularly relevant for cookie consent on websites.
• Exercise of data subject rights: Implement processes to handle data subject requests promptly, including access, rectification, erasure, and data portability. This requires establishing clear workflows, potentially setting up tools and systems, and training staff to respond to these requests within the GDPR-mandated time frame of one month.
• Data protection by design and by default: Organizations should integrate data protection measures into their processes from the start. This proactive approach helps prevent privacy issues before they occur.
• Data Protection Impact Assessments (DPIAs): Conduct DPIAs for high-risk processing activities to assess and mitigate potential risks. This involves a systematic analysis of new projects or changes to existing processes that could impact individuals’ privacy, helping to identify and minimize data protection risks early on.
• Data breach notification: Organizations must report certain data breaches to the relevant authorities within 72 hours. This requirement ensures swift action in case of data breaches, protecting individuals’ rights. There are also requirements for notifying affected data subjects.
• Appointment of a Data Protection Officer (DPO): Under the GDPR, organizations must appoint a Data Protection Officer (DPO) if they are public authorities or bodies, or if their core activities involve large-scale systematic monitoring or processing of sensitive data. For other organizations, appointing a DPO is recommended in many cases, but not required.
• Records of processing activities: Organizations must maintain records of their data processing activities. This documentation is essential for demonstrating compliance with authorities.
• Data transfers: Personal data can only be transferred outside the EU under specific conditions. This requirement helps ensure that data protection standards are maintained globally.
• Data minimization and accuracy: Implement processes to ensure only necessary data is collected and kept accurate. This involves regularly reviewing and updating stored data, securely deleting unnecessary information, and designing data collection forms to gather only essential information.

Implementing these key GDPR compliance requirements helps organizations build a solid foundation for GDPR compliance. This not only reduces the risk of fines but also creates a culture of data protection that can boost customer trust and loyalty.

GDPR fines and penalties for non-compliance

GDPR fines for noncompliance can be severe, using a two-tiered system based on the severity of the violation and if it’s a first or repeat offense. Less serious breaches can lead to fines of up to EUR 10 million or 2 percent of global annual revenue, whichever is higher, while more severe violations can result in fines up to EUR 20 million or 4 percent of revenue. 

The exact fine is determined by factors in Art. 83 GDPR, including the nature of the violation, any preventive measures taken, notification of affected individuals, the type of personal data involved, the company’s history with data privacy, and their response to warnings.

Beyond fines, GDPR violations can damage customer trust and brand reputation, result in future audits and monitoring, and even lead to a ban on processing EU residents’ data. To avoid these consequences, organizations should prioritize GDPR compliance by implementing data protection measures, obtaining proper consent, and maintaining clear privacy policies. 

13-step GDPR compliance checklist

Navigating and understanding GDPR compliance can be challenging for any organization. Here’s what you can do to help ensure your company and website stay compliant with the GDPR.

1. Conduct a data audit

Start by mapping all of the personal data your organization collects, processes, and stores. Identify all tracking cookies and technology. Pinpoint where the data comes from, including websites, apps, and offline sources. 

Then, categorize the data types, such as personally identifiable information or sensitive information. Document how data flows within your organization and to third parties. Finally, assess the legal basis for processing each type of data. This audit will serve as the foundation for your GDPR compliance efforts and help you identify areas that need improvement.

2. Review and update privacy policies

Your privacy policy should be transparent, concise, understandable to the average person, and easy to access. Clearly explain how you collect and process data, including the purposes, sharing, and retention periods. Make sure to outline data subject rights and provide instructions on how individuals can exercise them. If you transfer data internationally, specify the safeguards in place. Use plain language and avoid legal jargon.

3. Implement consent mechanisms

Integrate data protection principles into your business processes and product development from the outset. This means considering privacy and security at every stage of your operations, not as an afterthought. Implement technical and organizational measures to ensure that you only collect and process the minimum amount of data necessary for your specific purposes. Use techniques such as data minimization, pseudonymization, and encryption to enhance data protection. By embedding privacy into your systems and processes, you’ll be better equipped to comply with GDPR requirements and demonstrate your commitment to data protection.

4. Establish procedures for exercising data subject rights

Identify and document the lawful basis for processing personal data under GDPR. The six lawful bases are consent, contract, legal obligation, vital interests, public tasks, and legitimate interest. Ensure that you have a valid legal ground for each processing activity and that you can justify your chosen basis if challenged. If relying on consent, make sure it’s freely given, specific, informed, and unambiguous. Keep records of how and when consent was obtained and potentially updated over time, and provide easy ways for individuals to withdraw their consent at any time.

5. Implement data protection by design and default

Integrate data protection principles into your business processes and product development from the outset. This means considering privacy and security at every stage of your operations, not as an afterthought. Implement technical and organizational measures to ensure that you only collect and process the minimum amount of data necessary for your specific purposes. Use techniques such as data minimization, pseudonymization, and encryption to enhance data protection. By embedding privacy into your systems and processes, you’ll be better equipped to comply with GDPR requirements and demonstrate your commitment to data protection.

6. Conduct Data Protection Impact Assessments

Establish a process for conducting Data Protection Impact Assessments when introducing new technologies or processing activities that are likely to result in high risks to individuals’ rights and freedoms. DPIAs help identify and mitigate privacy risks before they occur. Develop a template for DPIAs that includes a description of the processing operations, an assessment of the necessity and proportionality of the processing, and measures to address the risks identified. Make DPIAs a standard part of your project management and product development processes.

7. Appoint a Data Protection Officer (if required)

Determine whether your organization is required to appoint a Data Protection Officer under GDPR. Even if not mandatory, consider appointing one voluntarily to oversee your data protection strategy and GDPR compliance. The DPO should have expert knowledge of data protection laws and practices and be able to operate independently within your organization. Ensure the DPO has the necessary resources and support to carry out their duties effectively. Communicate the DPO’s contact details to your staff and include them in your privacy notices.

8. Implement data breach notification procedures

Develop a robust data breach response plan that enables you to detect, report, and investigate personal data breaches. Create clear procedures for assessing the risk to individuals in the event of a breach and for notifying the relevant data protection authority within 72 hours when required. Train your staff to recognize and report potential breaches promptly. Conduct regular drills to test your breach response procedures — and other operations that can pose a risk to data protection — and identify areas for improvement. Keep detailed records of all breaches, including those that don’t require notification, to demonstrate compliance with the GDPR’s accountability principle.

9. Review and update data processor agreements

Audit your relationships with data processors and ensure you have appropriate data processing agreements in place. These agreements should clearly set out the subject matter and duration of the processing, the nature and purpose of the processing, the type of personal data involved, and the obligations and rights of both parties. Include specific clauses required by the GDPR, such as the processor’s duty to assist with data subject rights requests and breach notifications. Regularly review and update these agreements to reflect any changes in your data processing activities or GDPR requirements.

10. Implement employee training programs

Develop GDPR awareness training tailored to different roles within your organization, combined with access controls. Provide specialized training for employees who handle personal data. Conduct regular refresher courses to keep everyone updated on data protection practices. Test employees’ knowledge to ensure understanding of GDPR principles. Keep records of training completion and results for accountability.

11. Establish a data retention policy

Define clear retention periods for different types of personal data. Implement processes to securely delete or anonymize data once the retention period has expired. Create a system to flag data for review or deletion as needed. Regularly audit your data storage practices to ensure compliance with your retention policy. Document justifications for any extended retention periods.

12. Implement appropriate security measures

Enhance your data security measures to protect personal data against unauthorized access, alteration, disclosure, or destruction. This may include implementing encryption, access controls, regular security testing, frequent systems updates like applying patches, and staff training on data protection. Develop and maintain an information security policy that outlines your security practices and procedures. Regularly review and update your security measures to address new threats and vulnerabilities. Document your security measures to demonstrate compliance with GDPR’s security principles.

13. Maintain records of processing activities

Create and maintain comprehensive records of your data processing activities as required by Art. 30 GDPR. These records should include details such as the purposes of processing, categories of data subjects and personal data, recipients of personal data, transfers to third countries, and time limits for erasure. Regularly review and update these records to ensure they accurately reflect your current data processing activities. Use these records to demonstrate compliance and as a basis for Data Protection Impact Assessments and security measures.

How Cookiebot CMP can help you achieve compliance

Achieving and maintaining GDPR compliance, especially with managing cookies and user consent, can be complicated. Cookiebot CMP simplifies this for organizations by automating cookie management and consent collection, making it easier to navigate GDPR compliance requirements.

Cookiebot CMP scans your website to identify all cookies and tracking technologies in use, giving you a clear view of your data collection practices. This transparency enables you to accurately inform users about the cookies in use, the data being collected, and consent options. The customizable consent banner makes it easy for users to give, change, or withdraw consent to meet GDPR standards for explicit and informed consent. 

Cookiebot CMP also maintains detailed logs of user consent, helping you demonstrate GDPR compliance in case of an audit or data subject access request. Regular re-scans detect changes in cookie usage, helping ensure your privacy policy stays up to date. Integrating Cookiebot CMP into your website can simplify compliance efforts, reduce the risk of penalties, and build trust with users through transparent data practices.