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BlogPrivacy

Understanding GDPR for US-Based Websites & Online Businesses

Bobby Klinck
Harvard Law Grad | Marketer | Tech Founder
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Ever wonder how GDPR affects your US-based website? You're not alone! GDPR, or the General Data Protection Regulation, is a big deal in the digital world, especially if your site attracts visitors from Europe. 

In fact, the GDPR was all the rage when I was first entering the online space. Other online lawyers were using it as a “scare tactic” to get people to pay them for services and were charging people for “guides” about how to comply. The trouble was that the trainings were so dense, I could hardly understand them with my fancy-schmancy Harvard Law degree. So, I dove in, read the law multiple times and created free trainings that made the law simpe.

The GDPR is less of a craze these days, but it’s still important. So, my team and I figured we should create a post that you can read quickly to understand what you actually need to know about GDPR. 

At it’s core, the GDPR is all about respecting privacy and being transparent about how you handle personal data. And yes, even if you're miles away in the US, GDPR can still apply to you. So, let's unravel this together and make GDPR for US-based websites a breeze to understand.

What is GDPR and Why Should You Care?

Alright, let's break down GDPR and see why it's a big deal, even for US-based websites. 

GDPR stands for General Data Protection Regulation, and it's the gold standard for privacy in Europe. 

In 2018, the European Union introduced GDPR to replace an outdated directive. The goal? Harmonize data protection laws and give individuals control over their info. Seems fair, right?

Here’s where it gets a bit sticky: It applies to EU and non-EU companies doing business in Europe. 

That means GDPR applies to any entity dealing with EU residents' data, no matter where they're based. So, if your website gets traffic from countries in the EU, you're in the GDPR club.

Spoiler alert… as soon as your website gets visitors other than your immediate family, there’s a decent shot that there are some folks from the EU in the mix. 

For what it’s worth, even though we specifically serve businesses based in the United States and have always limited our advertising to US-based individuals, somewhere between 5% and 10% of our website traffic has always been from the EU. 

At its most basic level, the GDPR means that websites must follow strict rules on user consent before collecting any personally identifiable information (PII). No sneaky data grabs allowed.

Non-compliance can lead to hefty penalties. We're talking big bucks here. So, better get your GDPR game on point.

By following GDPR, you're not just dodging hefty fines; you're also showing your users that you value and respect their privacy. And let's be real, who doesn't appreciate a website that treats their personal info like a VIP? 

So, whether your site is big or small, GDPR for US-based websites is something you'll want to get friendly with.

The Basics: Navigating GDPR Compliance for Your US-Based Website

Navigating GDPR might seem like a maze at first, but it's simpler than you think, especially for US-based websites. 

At its heart, GDPR is about two things: transparency and consent. 

For your website, this means being crystal clear about what data you're collecting and why. Plus, you need to get a thumbs up from your European visitors before collecting their info. 

Essentially you're agreeing to treat their data with respect and use it responsibly. So, while GDPR might seem like a big task, it's really about building trust and being a good host to your international visitors.

Here’s a simplified list that will help you comply with the GDPR:

  1. Disclose personal data collection. Be upfront about collecting personal info. Let users know how, why, and what kind of data you're gathering. No secrets here.
  2. Use a GDPR-compliant privacy policy. Do not skip this on your website. Privacy policies are required in the US, so taking the extra step to make sure it’s GDPR-compliant is no big deal. Make it crystal clear how you use customer info. Keep it accessible for everyone to see. 
  3. Always seek user consent. Get permission before collecting personal data on forms or using cookies. This means including consent checkboxes to your form that are available to EU visitors that allow them to opt into marketing emails. Don’t assume that if they sign up for your freebie that they’re consenting to your follow-up marketing emails. While that’s currently okay in the US, it’s NOT okay in the EU. Also, pop-up cookie banners are your friends. 

Also, always provide users with the option to withdraw consent at any time. Just because they say it’s okay now doesn’t mean they’re saying it’s okay forever. Give them the option to opt out at any time.

Role of Third-party Applications

Third-party apps can be likened to the trusty sidekicks of websites in the digital sphere. But when it comes to GDPR, these apps need to follow the rules too.

It's not just about your own data collection practices; you gotta make sure those third parties play by the same rules. So when looking at your tech stack, make sure anything you use that touches the data of your website visitors is GDPR-compliant.

If you’re not sure, reach out to support and ask them how they’re building GDPR compliance into their tool.

If they’re not, it’s time to look for a GDPR-compliant alternative.

Transparency Requirements & Customer Rights Under GDPR

The GDPR says businesses must be clear about how they handle the private info of their website visitors, leads, and customers. 

Here’s how they break down of some of the rights covered by GDPR:

The right to be informed:

Customers must be apprised of the data collected, why it is required, and how long it will be retained. This should be done in your website policies and should be provided whenever someone asks for it.

The right of access:

Companies should give customers a copy of their personal data upon request. Check out this article for more info. Make sure all of your systems in your tech stack allow for easy access so you can send it to your visitors upon request.

The right to rectification:

If a customer's info is wrong or incomplete, they can demand a fix. Accuracy matters.

The right to erasure ('right to be forgotten'):

Customers can ask organizations to delete their personal info in certain situations. Learn more here.

Find out more about all the rights covered by GDPR in this guide.

Essentially, online businesses should ensure that customers can easily access their information and have control over what happens to it. 

Consequences of Non-compliance with GDPR Rules

Given the strictness of GDPR, as you could imagine, you’ll face some serious penalties if you don’t comply.

Fines for Breaking GDPR

If you don't play by the rules, you could end up with fines as high as a‚ €20 million or 4% of your annual turnover, whichever hurts more. 

Ouch. 

And while the higher fines are generally left for big companies that violate the regulation, there’s nothing to say they won’t come after smaller fish who are shirking their responsibilities. 

So, better stick to the guidelines set by the European Union if you have EU visitors coming to your website.

And when it comes to kids' data, you better be extra careful. 

Any breaches involving minors will cost you three times the usual penalty rate. That means you could be looking at some seriously painful fines if you mishandle children's personal information.

The Price Tag Beyond Fines

It's not just about the money. 

Failing to comply could also cause harm to your image, resulting in long-term implications on customer loyalty and enterprise development. 

So, it's not just about averting financial losses but also safeguarding your corporate image and customer faith. Forbes has more on the real cost beyond fines here.

Prevention Is Smarter Than Fixing

  • Data Audit: Regularly check your company's data processing activities. Know what personal information you collect and how you use it.
  • User Consent: Always get explicit consent before collecting user data. Give clear opt-out options.
  • Data Security: Implement strong security measures like encryption and penetration testing.
  • Policies Update: Keep your privacy policies up to date according to GDPR guidelines.

To avoid getting in trouble, make sure your organization promptly addresses all aspects of GDPR compliance. 

From updating policies to using GDPR-compliant third-party apps, cover all your bases. Remember, it's always better to prevent than to deal with non-compliance issues later.

Conclusion

And there you have it – a straightforward guide to GDPR for US-Based Websites! We've journeyed through the essentials of GDPR, from understanding its impact to the practical steps for compliance. 

Remember, GDPR isn't just a set of rules to follow; it's a commitment to respecting and protecting your users' privacy, no matter where they're from.

Now, let's talk about making things easier for you. Drafting GDPR-compliant privacy policies and other legal documents can feel overwhelming. But don't worry, Plainly Legal™ has got your back. 

‍The Plainly Legal™ Agreement Generator is designed to simplify this process. It's quick, user-friendly, and specifically tailored to help you create the legal documents you need, ensuring you're always on the right side of GDPR.

By staying informed, proactive, and using the right tools, you can make your website a welcoming and safe space for all your EU visitors. 

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