(8) ‘processor’ means a natural or legal person, public
authority, agency or other body which processes
personal data on behalf of the controller;
Granted, the above is not entirely straightforward.
Basically, if Company A sells items, but uses Company B to
track information about their customers, Company B would
be the processor (processing the personal data on behalf of
Company A) and Company A would be the data controller
(because it determines why the data is being processed).
It is important to recognize which category a business falls
into as the duties of processors and controllers differ under
the GDPR. Data controllers are responsible for obtaining
and managing consent and the right to access. The proces-sor
is primarily responsible for processing the data; things
like encryption and anonymization. The processor is also
responsible for ensuring that the data is handled in accor-dance
with the requirements of the controller and the GDPR.
While the above hardly captures the breadth of the require-ments
the GDPR places upon entities operating in the EU, it
does demonstrate that this level of data micromanagement
is beyond what is typically expected of Canadian businesses.
Inevitably, becoming GDPR compliant will require significant
investment on behalf of Canadian businesses that operate in
the EU.
For small- and medium-sized businesses, it may be worth-while
asking: What happens if I am not GDPR compliant?
There are two tiers of fines associated with non-compliance.
The first tier is up to two per cent of annual global turn-over
or €10 million (C$15.1 million) – whichever is higher. The
second tier is up to four per cent of annual global turnover or
€20 million (C$30.1 million) – whichever is higher. When a
LEGAL
The fines are based on
global revenue, so the
risk of non-compliance is
significant even if revenue
from the EU is only a fraction
of the global total.
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