GDPR will strengthen bonding between firms and consumers

With the implementation of GDPR effective from May 25, firms will be more accountable to consumers towards data they collect and how they process it. Companies are forced to make their privacy terms readable and understandable by common populace.

However, these laws are portrayed as being monstrous for firms as it lays down stricter guidelines for collecting data. However, if you think these laws only empowers customers which every entrepreneur out there is doing. This law protects following rights of the customers:

1. The right to access –this means that individuals have the right to request access to their personal data and to ask how their data is used by the company after it has been gathered. The company must provide a copy of the personal data, free of charge and in electronic format if requested.
2. The right to be forgotten – if consumers are no longer customers, or if they withdraw their consent from a company to use their personal data, then they have the right to have their data deleted.
3. The right to data portability – Individuals have a right to transfer their data from one service provider to another. And it must happen in a commonly used and machine-readable formats like excel file and pdf format.
4. The right to be informed – this covers any gathering of data by companies, and individuals must be informed before data is gathered. Consumers have to opt-in for their data to be gathered, and consent must be freely given rather than implied.
5. The right to have information corrected – this ensures that individuals can have their data updated if it is out of date or incomplete or incorrect.
6. The right to restrict processing – Individuals can request that their data is not used for processing. Their record can remain in place, but not be used.
7. The right to object – this includes the right of individuals to stop the processing of their data for direct marketing. There are no exemptions to this rule, and any processing must stop as soon as the request is received. In addition, this right must be made clear to individuals at the very start of any communication.
8. The right to be notified – If there has been a data breach which compromises an individual’s personal data, the individual has a right to be informed within 72 hours of first having become aware of the breach.

All of these rights are of paramount importance to the users. Although many argue that it will be harsh on small businesses, as to make changes in the system to be able to comply with the law takes investment in the infrastructures and hiring of Personal Data Officers.

It might be true for companies based in Europe but those based out of it (although the law applies to all irrespective of their location if they deal with European consumer they must comply).

However, in this case, enforcement will be done by coordination between the national agencies responsible for the data protection which is a difficult business. However, they can get it enforced by the parent company.

Consider Shopify, it and its consumers also need to comply with GDPR. So what the enforcement agency can do is to make parent company accountable for it, so in future Shopify can suspend the account of basic users which who do not comply with GDPR.

The significance of GDPR :

The importance of this law is long term as customers will be put to the advantage. As it aims to bring in transparency and companies that are honest and serves the best services will get to added incentive as it strengthens the bond between consumers and firms. This is how companies will benefit.

Transparency: The new laws will usher-in an era of transparency which means companies collecting data must account for data. If done right this will restore their faith in the system.

Better Security: It's the continuous cyber breaches stealing customers data that has paved the way for GDPR. Therefore companies will be required to put in extra into securing their systems.

Accountability: Since the consumer can ask for the portability or to be forgotten or if any breach happens, businesses are required to report to customers, therefore, increasing the accountability of the businesses.

Accurate: Since the law empowers consumers that their data be updated if not accurate will ultimately help businesses gain true insights into a particular customer.

GDPR Solutions for Small Businesses

Among those highly affected by GDPR is small e-commerce companies, however, frameworks - Magento, Shopify & Woocommerce upon which majority of these e-commerce stores are built upon have taken substantial steps to ensure a smooth transition into the post-GDPR era.

Magento:

Magento is already Privacy Shield self-certified. It is a mechanism approved by European Commission to facilitate the transfer of personal data from the European Union and Switzerland to the United States.

Magento is ready to assist its merchants to transition into the post-gdpr era and moreover, the products don't need dramatic customization but do require a process to be in place by which Magento will assist merchants with such requests if/as required. For this Magento has released documentation as well, which merchants can refer to -->

Magento 1.x GDPR compliance

Magento 2.x GDPR compliance

Moreover, merchants can refer to this FAQ doc by Magento for any queries.

Shopify:

Shopify too isn't behind, it's also taking all of the steps required to enable merchants smoothly comply with the new law. Since different businesses serve different purposes, therefore their need is also different. Shopify has created comprehensive documentation which tries to answer all the major areas of concerns such as Collection of personal data, Privacy notice, Appointment of a Data Protection Officer, Data processing agreements, Customer consent, Parental consent, Automated decision-making, Data breach notification, Third-party apps, and International data transfers.

Also, it published a white paper in which merchant's queries are at the center. Refer to Shopify GDPR Whitepaper.

Wordpress:

The most popular framework for bloggers - Wordpress is also not far behind. In its 4.9.6 update, it has covered all the features that concern the changes to be made to comply with GDPR. Wordpress merchants may refer to this link --> WordPress 4.9.6 Privacy and Maintenance Release.

Also, its e-commerce framework Woocommerce has also provided a comprehensive documentation revolving around the implementation of GDPR by merchants. Refer to these links --> WooCommerce and the GDPR

Ripple Effects of GDPR:

Since the GDPR restricts businesses from sending unsolicited emails, companies will look out for people with high connections which can introduce them to larger networks LinkedIn and Twitter are the two medium which is going to witness a significant increase in usage.

Since it will be based on bigger network, CTAs asking to share the content will witness the rise. Not only the quantity but the quality will also increase as the better content is easily shared

The rise of Micro-Influencers: Someone’s gain is someone’s lost, micro influencer will gain prominence in the post GDPR era if newsletters can't be sent however similar results can be achieved by approaching an influencer.

Traditional Media Platform to witness growth: Similarly, since it lays down stricter rules on online medium, traditional media Television and print will see the increase in their usage.

So companies need to approach the GDPR with more positive attitude, it gives you more than it takes and helps you increase the trust of your customers. Let me know your opinion, how it affect businesses positively and negatively too.

About CedCommerce:

Featured among the winners of Technology Fast 50 India and Technology Fast 500 APAC for two years in a row, CedCommerce is the official Channel Integration of behemoths such as Walmart, Sears, Best Buy, and Newegg, etc. facilitating onboarding of e-commerce sellers on these e-commerce platforms.