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Difference between GDPR and Privacy Shield
Online information is vulnerable to third parties' abuse, such as identity theft, fraud, and phishing schemes. The internet has provided countless new avenues for commerce and communication, but it has also made it simpler for identity thieves to target their victims. Thus, it is important to protect the sensitive data that many businesses, nonprofits, and governments have on file, such as loyalty program information, customer data, data collection, transaction details, and employee information.
Several rules and regulations, like the General Data Protection Regulation and the Privacy Shield, have been adopted in various regions of the world to ensure this is adhered to. While both aim to keep sensitive information safe, they operate in slightly different ways.
What is GDPR?
The General Data Protection Regulation is the name given to this set of rules for safeguarding personal information. The GDPR was created to standardize European data protection laws and prevent EU citizens from having their personal information exploited or misused. The General Data Protection Regulation (GDPR), enacted in April 2016 and enacted in May 2018, imposes strict regulations on businesses worldwide that collect or use personal information from residents of the European Union (EU) or European Union offices.
The General Data Protection Regulation (GDPR) must be observed by all organizations and applies to citizens of the EU as well as non−EU persons who live in the EU. As such, it may be challenged in court and has legal implications and fines for noncompliance. The maximum fine is 20,000,000 euros or 4% of an organization's global income, whichever is lower. It comes with fines and penalties if disregarded.
The European Commission involved in crafting GDPR deems any employee−related data personal and so subject to protection.
What is Privacy Shield?
The EU−US Privacy Shield Framework is an agreement between the European Union and the United States that ensures the protection of personal data during its transmission between the United States and the European Union. This program is overseen by the Department of Commerce and the Federal Trade Commission, allowing self−certification voluntarily. Yet it is the Federal Trade Commission's job to ensure that the law is followed and enforced.
Each side has its legal representative, and each agent reviews the other's performance once a year. During this phase, both parties review the agreements and make suggestions for bringing them into conformity with the GDPR and the Privacy Shield.
A conflict arises, however, since the U.S. Department of Commerce considers the transfer of employee data to be the transfer of business data rather than personal data. The laws here are ambiguous. In the case of a violation of US Privacy Shield regulations, sanctions and fines may be imposed; however, these consequences are not as severe. Suspensions, fines of up to $40,000 per day in extreme instances, injunctive awards, the issuance of a cease and desist order, and the mandatory payment of compensation to those who have been harmed are just some of the penalties that can be imposed.
Components of the Privacy Shield include the following examples −
The data will be used for no other purpose than to achieve the ones specified.
Redress and protection are available in several forms for EU residents.
The European Union and the United States looked into this matter together.
Similarities: GDPR and Privacy Shield
Both initiatives have similar goals− to streamline the process by which firms may adopt a data security policy that won't get in the way of day−to−day operations.
Both aim to protect people's privacy and prevent unauthorized access to their data.
Differences: GDPR and Privacy Shield
The following table compares and contrasts the important features of GDPR and Privacy Shield −
| Characteristics | GDPR | Privacy Shield |
|---|---|---|
| Definition | The EU's citizens' personal data should be protected from abuse and exploitation, and the General Data Protection Regulation (GDPR) provides a data protection framework with this goal in mind. | The EU−US Privacy Shield Framework allows companies based in the US to transfer personal data to and from EU countries while remaining compliant with the General Data Protection Regulation (GDPR). |
| Enforcement | The European Union's highest court oversees and enforces compliance with the General Data Protection Regulation. | The Privacy Shield is overseen by the Department of Commerce and the Federal Trade Commission to ensure that all participating organizations are following the rules. |
| Legality | In order to do business in the European Union (EU), all companies, regardless of whether their customers are EU residents or not, must follow the rules outlined in the General Data Protection Regulation (GDPR). | User participation in the Privacy Shield is voluntary and requires users to self−certify their compliance with the scheme's requirements. |
| Treatment of human resource data | Information about an employee in the possession of the European Commission, which is engaged in GDPR, is deemed personal data and is therefore protected. | The United States Department of Commerce considers the transfer of employee data to be a transfer of business data, as opposed to the communication of personally identifiable information. |
| Scope | Any business or organization outside of the EU that deals with the personal information of EU citizens is subject to the General Data Protection Regulation (GDPR). | Companies with U.S. headquarters are the only ones eligible to participate in the Privacy Shield. |
| Sanctions | The GDPR imposes harsh penalties for violations. | In regards to penalties and fines, the Privacy Shield program has very loose guidelines. |
Conclusion
The General Data Protection Regulation (GDPR) is a data protection framework with the goal of unifying data protection legislation throughout Europe and protecting EU citizens' personal data from abuse and misuse. The legislation is enforced by the Court of Justice of the European Union and applies to all companies doing business within the EU, regardless of whether their customers are EU citizens or not (CJEU).
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