European regulation around General Data Protection Regulation GDPR – Exportia Webinar

Why GDPR Compliance is Crucial for Businesses

If your business targets European customers, has a physical presence in the EU, or stores and processes data of EU citizens, you must comply with the General Data Protection Regulation (GDPR). This regulation applies to businesses worldwide and impacts how companies collect, store, and process personal data.

Whether you are sending newsletters, collecting leads at trade shows, or running Facebook campaigns targeting EU residents, GDPR compliance is essential to avoid heavy fines and legal risks.

In a recent Exportia webinar, privacy law expert Christelle Santelli of Innovo Legal explained how Australian companies marketing in the EU can stay compliant with GDPR while optimizing their data handling processes.

What is GDPR and Who Does It Apply To?

The General Data Protection Regulation (GDPR) is an EU privacy law that regulates how businesses collect, process, and store personal data belonging to EU residents. Even if your company is based outside of Europe, GDPR applies if you process data from individuals in the EU.

Does GDPR Apply to Your Business?

Your business must comply with GDPR if it:

Sells products or services to customers in the EU
Has a business establishment in the EU
Collects, stores, or processes personal data from EU citizens

What Counts as Personal Data Under GDPR?

GDPR defines personal data broadly, covering any information that can identify an individual, including:

Full names and email addresses
Phone numbers and home addresses
IP addresses and geolocation data
Online identifiers, cookies, and browsing behavior

Even business-related contact details are considered personal data under GDPR.

Understanding Data Controllers and Data Processors

GDPR classifies businesses into two categories:

Data Controllers: Organizations that determine how and why personal data is processed (e.g., a company collecting customer emails for marketing).
Data Processors: Third-party service providers that process data on behalf of a controller (e.g., an email marketing platform like MailChimp).

Companies that act as both controllers and processors must ensure compliance at multiple levels.

7 Key GDPR Principles for Data Processing

To comply with GDPR, businesses must follow these fundamental principles:

Lawfulness, Fairness & Transparency – Clearly inform individuals why their data is being collected and how it will be used.
Purpose Limitation – Personal data should only be used for the specific purpose it was collected for.
Data Minimization – Businesses should collect only the necessary amount of personal data.
Accuracy – Stored data must be correct and up to date. Individuals have the right to request corrections.
Storage Limitation – Data should not be kept longer than necessary. Retention policies must be clearly defined.
Integrity & Confidentiality – Personal data must be secured from breaches and unauthorized access.
Accountability – Businesses must document their GDPR compliance efforts and demonstrate compliance when required.

Following these principles ensures data privacy, legal compliance, and consumer trust.

Lawful Bases for Processing Personal Data Under GDPR

Businesses must have a valid legal basis to process personal data. GDPR outlines six lawful bases for data processing:

Consent – The individual has explicitly agreed to the processing of their data.
Contractual Necessity – Data is required to fulfill a contract, such as processing an online order.
Legal Obligation – Data processing is necessary to comply with a legal requirement, such as tax reporting.
Vital Interests – Data processing is needed to protect someone’s life.
Public Interest – Processing is necessary for public service tasks, such as law enforcement.
Legitimate Interest – The company has a justifiable reason for processing data that does not override the individual’s privacy rights.

For marketing activities, businesses typically rely on consent or legitimate interest.

GDPR and Email Marketing Compliance

Do Businesses Need Consent for Email Marketing?

Yes. If your company sends marketing emails to EU customers, you must obtain clear and explicit consent before sending promotional content. GDPR requires an opt-in system where individuals actively agree to receive emails. Pre-checked boxes or implied consent are not valid under GDPR.

What About Existing Email Lists?

If you have a database of EU contacts collected before GDPR came into effect, you must ensure that those individuals gave explicit consent to receive marketing emails. If consent records are unclear, businesses should request re-confirmation before continuing email campaigns.

Can Businesses Buy Contact Lists?

Buying email lists is highly risky under GDPR, as individuals must give direct consent to receive marketing emails. Using third-party lists without clear proof of consent can result in GDPR violations and heavy fines.

Data Subject Rights Under GDPR

GDPR grants individuals significant control over their personal data. Businesses must ensure they can respond to requests from EU citizens regarding:

Right to be Informed – Users must know how their data is collected and processed.
Right to Access – Individuals can request copies of their personal data.
Right to Rectification – Users can ask for incorrect data to be corrected.
Right to Erasure (Right to be Forgotten) – Individuals can request the deletion of their personal data.
Right to Restrict Processing – Users can limit how their data is processed.
Right to Data Portability – Customers can request data in a format that allows easy transfer to another provider.
Right to Object – Individuals can refuse the processing of their data for certain purposes, including marketing.

These rights empower EU residents and increase the responsibility of businesses that process their data.

GDPR Compliance for International Data Transfers

Businesses that store or process EU customer data outside the EU must follow strict guidelines for international data transfers.

Transfers within the EU are allowed without additional restrictions.
Transfers outside the EU require additional legal mechanisms, such as Standard Contractual Clauses (SCCs) or approved data protection safeguards.
Australia is not currently on the EU’s list of “adequate” countries, meaning extra measures are required when transferring data to Australian-based servers.

Businesses using cloud storage or third-party data processors should review their data transfer agreements to ensure GDPR compliance.

Data Breach Notifications and Accountability Under GDPR

Under GDPR, businesses must report data breaches to the appropriate regulatory authority within 72 hours of discovering the breach. In some cases, affected individuals must also be notified.

Companies must have:

A data breach response plan
Clear documentation of security measures
Employee training to minimize human errors

Failure to report a breach on time can lead to additional fines and legal consequences.

Penalties for Non-Compliance with GDPR

GDPR imposes strict financial penalties for violations. Companies that fail to comply face fines of:

Up to 4% of global annual revenue or €20 million, whichever is higher
Additional legal claims from affected individuals

While large corporations like Google and Facebook have been heavily fined, small businesses can also face penalties if they neglect GDPR compliance.

Final Thoughts: Steps to Ensure GDPR Compliance

For businesses aiming to stay GDPR compliant, the following steps are essential:

Review and update your privacy policy to ensure transparency.
Obtain explicit consent before collecting or processing personal data.
Train employees on GDPR compliance and data security.
Secure personal data with encryption and access controls.
Keep records of all GDPR compliance efforts, including consent logs and processing activities.

By integrating data protection into everyday operations, businesses can build customer trust and avoid legal pitfalls.

Need Expert Guidance?

For businesses navigating GDPR, consulting a privacy law expert like Christelle Santelli of Innovo Legal or compliance specialists at Exportia can help ensure full compliance while optimizing marketing and data strategies.