At Alunta we have decided to createa a dictionary for words and important terms related to running a subcription busniess. You are now reading about “GDPR”.
GDPR greatly impacts subscription-based businesses because it mandates how personal data should be handled. These businesses often collect customer data such as names, email addresses, and payment information. Under GDPR, they are required to obtain explicit consent from customers before collecting this data. They also need to provide clear information about how this data will be used, stored, and protected. Non-compliance can lead to hefty fines, so it's crucial for subscription-based businesses to ensure they're following GDPR guidelines.
To comply with GDPR, a subscription service should first conduct a data audit to understand what personal data they hold, where it came from, and who it is shared with. They should then review their data collection processes and ensure they obtain clear, affirmative consent from users. They should also have a clear privacy policy outlining how they use and store personal data. Additionally, they need to implement strong data security measures to protect against data breaches. Finally, they must have procedures in place to respond to data subject requests, such as requests for access, rectification, or deletion of personal data.
Non-compliance with GDPR can result in severe penalties for subscription services. The maximum fine is 20 million Euros or 4% of the company's global annual turnover, whichever is higher. Apart from monetary penalties, non-compliance can also lead to reputational damage. Customers are more aware of their data rights and may choose to leave a service that doesn't respect these rights. Moreover, non-compliant businesses may also face legal action from individuals whose rights have been infringed.
Check out other topics in our subscription dictionary below. We've gathered the ones we find most relevant in relation to gdpr.
