Mounting regulatory pressure to protect individual privacy rights has turned safeguarding personal data into a business imperative. Regulations like the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the United States are at the forefront of this effort, imposing strict obligations on organizations that handle personal data. Meanwhile, most states are following California's lead and a issuing their own consumer .
Formulating a data privacy and security framework to support this patchwork of data protection laws can be difficult. Fortunately, an international standard that sets forth a workable framework exists: ISO 27001. This international standard offers a robust foundation for securing sensitive information and supporting data privacy compliance.
An overview of privacy requirements under the GDPR and CCPA
Two sweeping laws dominate the consumer data privacy landscape: the GDPR and CCPA.
The General Data Protection Regulation (GDPR)
The GDPR is a comprehensive data privacy law enacted by the EU that went into effect on May 25, 2018. It applies to any organization that processes the personal data of EU residents, regardless of where the organization is located. The GDPR has become the global gold standard for data privacy regulation due to its strict requirements, emphasis on individual rights, and significant penalties for noncompliance.
Here is a summary of the GDPR's key provisions:
- Definition of personal data: The GDPR defines personal data broadly as any information that relates to an identified or identifiable individual. This definition includes traditional identifiers such as names and addresses and extends to digital identifiers like IP addresses, cookies, and location data.
- Lawfulness of processing: Businesses must ensure that they have a valid legal basis for processing personal data. The regulation outlines six legal bases for processing personal data, including consent, performance of a contract, legal obligations, vital interests, public tasks, and legitimate interests.
- Consent: Under the GDPR, consent must be freely given, specific, informed, and unambiguous. Businesses must obtain explicit consent from individuals before processing their personal data, and the consent must be clearly distinguishable and presented in an intelligible form. Pre-ticked boxes or vague consent forms are not sufficient.
- Individual rights: The GDPR grants individuals (data subjects) a number of rights over their personal data, including the rights of access, rectification (correcting inaccurate or incomplete data), erasure (the right to be forgotten), data portability, and objecting to the processing of their personal data for marketing, for example.
- Data breach notification: The GDPR requires that data controllers notify the relevant data protection authority of a personal data breach within 72 hours of becoming aware of the breach, unless the breach is unlikely to result in harm to individuals. If the breach poses a high risk to individuals' rights and freedoms, the affected individuals must also be informed.
- Data Protection Officer (DPO): Certain organizations, particularly those that process large volumes of sensitive data or engage in regular monitoring of individuals, are required to appoint a DPO to oversee data protection compliance.
The GDPR imposes significant fines for noncompliance. Depending on the nature and severity of the violation, fines can reach up to €20 million or 4% of a company's global annual turnover, whichever is higher.
The California Consumer Privacy Act (CCPA)
The CCPA went into effect on January 1, 2020. The CCPA is one of the most comprehensive data privacy laws in the United States, offering California residents more control over their personal data and placing new obligations on businesses regarding how they collect, use, and share personal information.
The CCPA applies to for-profit businesses that do business in California and meet at least one of the following criteria:
- Have annual gross revenues exceeding $25 million
- Buy, sell, or share the personal information of 100,000 or more California residents, households, or devices
- Derive 50% or more of their annual revenue from selling California residents' personal information
Here are some of this law's key provisions:
- Definition of personal information: The CCPA broadly defines personal information as any information that identifies, relates to, describes, or is reasonably capable of being associated with an individual. This includes data like names, addresses, Social Security numbers, internet browsing history, geolocation data, and more.
- Consumer rights: The CCPA grants California residents specific rights regarding their personal information, including the right to know what personal information is being collected about them, the purposes for which it is being used, and whether their information is being sold or shared; the right to access their personal information; the right to delete their personal information; and the right to opt-out of the sale of their data.
- Transparency requirements: Businesses must provide a clear privacy notice to consumers that explains what categories of personal information are being collected, the purpose for collection, and whether the data will be sold or shared. The notice must also explain how consumers can exercise their rights under the CCPA.
- Consent for minors: The CCPA includes special protections for minors under the age of 16. Businesses must obtain opt-in consent from minors aged 13 to 16 before selling their personal information, and parental consent is required for children under 13.
- Data breach notification: Consumers may sue businesses under the CCPA if a data breach results from the business's failure to implement adequate security measures.
The CCPA is enforced by the California Attorney General and allows for civil penalties of up to $2,500 per violation or $7,500 per intentional violation. Additionally, consumers have a limited private right of action if their personal information is exposed in a data breach due to a business's lack of reasonable security measures. Consumers can seek damages ranging from $100 to $750 per incident or actual damages, whichever is greater.
In November 2020, California voters passed the California Privacy Rights Act (CPRA), which amends and expands upon the CCPA. The CPRA, effective January 1, 2023, introduces new consumer rights and further strengthens data protection in several key ways.
The CPRA introduces a new category of sensitive personal information, which includes data such as Social Security numbers, financial information, precise geolocation, racial or ethnic origin, and health information. Consumers can request to limit the use and disclosure of their sensitive personal information. The CPRA also grants consumers the right to request the correction of inaccurate personal information.
Finally, the CPRA established a new agency, the CPPA, dedicated to enforcing California's privacy laws and handling compliance issues.
How ISO 27001 provides support for consumer privacy protection
ISO 27001 centers around creating and maintaining an Information Security Management System (ISMS), a structured framework designed to protect sensitive information. The ISMS includes policies, processes, and controls that help organizations manage security risks. This system directly complements the privacy goals of the GDPR and the CCPA by focusing on key security areas like encryption, access control, and incident response, all of which are essential to protecting personal data.
A risk-based approach is at the heart of ISO 27001, aligning well with the GDPR's data protection impact assessments (DPIAs) and the CCPA's focus on securing consumer data. ISO 27001 requires organizations to assess and manage risks related to information security continuously. This proactive stance on risk management helps organizations identify potential vulnerabilities and implement safeguards to protect personal data.
ISO 27001's Annex A lists specific security controls relevant to privacy protection, including encryption, access management, and regular audits. These controls support secure data processing in cloud environments and through third-party vendors, addressing a major concern for GDPR and CCPA compliance. By implementing these controls, businesses can better protect personal data against unauthorized access and breaches, thereby meeting regulatory obligations.
Leveraging ISO 27001 to support GDPR and CCPA compliance
Here is a closer look at how ISO 27001 tracks with compliance under the GDPR and CCPA.
GDPR Article 32 compliance: Security of data processing
Article 32 of the GDPR requires organizations to ensure the security of personal data processing, with measures like pseudonymization and encryption. ISO 27001 provides a structured approach to meet these requirements by focusing on securing data. By aligning the ISMS with the GDPR, organizations can demonstrate compliance with Article 32, ensuring data is protected from unauthorized access or alteration.
Data breach management
ISO 27001's incident response framework is crucial for managing data breaches, helping organizations meet the GDPR's 72-hour breach notification requirement and the CCPA's breach response obligations. By establishing a clear breach management protocol, businesses can respond swiftly and efficiently to mitigate damage and comply with notification deadlines.
Accountability and transparency
The GDPR and the CCPA both emphasize accountability, requiring organizations to demonstrate that they have implemented appropriate measures to protect personal data. ISO 27001 supports this by documenting procedures and controls, enabling businesses to show they have taken steps to secure data and protect privacy rights. This transparency is critical to building trust with regulators and consumers alike.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
