The Importance of GDPR Consultancy to US Businesses in 2023
Complying with the GDPR is important if you’re trading with EU residents. Yet its importance is much wider than that – which is why having an EU GDPR consultant is essential.
Data doesn’t operate to traditional borders. Just as your customers can come from anywhere in the world, so can their data. It’s why, even as a US business operating on US soil, your organization is bound by data protection laws from outside the United States.
Currently, no international data protection standard is more comprehensive or rigorous than the European Union’s (EU) General Data Protection Regulation (GDPR). If your business handles the personal data of EU residents, you are subject to its compliance requirements.
If you take a vacation to Europe, you ask a guide to show you the way through its unfamiliar streets, languages and customs. It’s the same with Europe’s data laws. That’s the value of having an EU GDPR consultant as part of your team.
In this blog post, we will explore the many ways in which GDPR consultancy can be invaluable for US businesses trading with European citizens in 2023.
Ensuring compliance with international regulations
As data flows across borders, US businesses that interact with EU customers or process EU citizens’ personal data must comply with the GDPR. Compliance can be a daunting task. After all, data protection in the US tends towards the more fractured and voluntary end of the spectrum. There’s nothing fractured or voluntary about GDPR, which is why so many US organizations find themselves in unfamiliar territory.
GDPR consultancy services specialize in guiding businesses through the intricacies of the GDPR, ensuring that US companies understand their obligations and implement the necessary measures to meet compliance standards.
Mitigating legal and financial risks
In our experience, many US companies are aware of the existence of GDPR and have some knowledge of the penalties for non-compliance, but the details are hazy. Because the GDPR is a regulation from a long way away, the risks can feel similarly distant.
They shouldn’t. The biggest fine in GDPR history ($1.3 billion) was handed to Meta in 2023. US companies have faced most of the biggest penalties. In the top 10 of fines to date, US companies make up more than half the list and account for more than $3 billion in fines.
Even then, some may tend to look at the names at the top of the list (the Facebooks, Googles, Amazons and WhatsApps of this world) and assume GDPR is only interested in penalizing the biggest offenders. It isn’t, as countless other smaller fines testify.
Having an EU GDPR representative as part of your team helps you understand the regulation’s nuances. They can help you identify areas of non-compliance and implement corrective action. GDPR consultancy can help mitigate legal and financial risks associated with non-compliance.
Protecting customer trust and reputation
Personal data matters to Americans. In 2022, an Ipsos poll found “an overwhelming majority (84%)” were at least somewhat concerned about the safety and privacy of their personal data. When trusting a brand is so important to driving purchases, advocacy and loyalty, the trust that comes from being open, transparent and compliant cannot be overstated.
By demonstrating a commitment to GDPR compliance, US businesses can build trust and enhance their reputation with their EU customers. And when they choose to replicate similar measures in their US operations, they can foster greater domestic customer trust and differentiate themselves in the marketplace.
Leveraging expertise in data security
It’s easy to view GDPR compliance purely as an exercise in satisfying EU data authorities. The reality is that when you work with an EU GDPR rep, you inevitably place greater organizational emphasis on data security. You make it more of a focus, which means you spot vulnerabilities, tighten controls and reevaluate processes.
By leveraging the expertise of GDPR consultants, US businesses can apply the latest best practice to enhance their data security position and reduce the risk of data breaches.
Adapting to a changing regulatory landscape
Only one thing is certain about the world of data protection: we’re only at the beginning. As companies make greater use of AI, the need for data security will become even greater. Almost inevitably, the EU GDPR will evolve. Almost inevitably, US data laws will tighten too.
By partnering with EU GDPR representatives, US companies can proactively adapt their policies and practices, ensuring ongoing compliance with evolving privacy regulations. So when the landscape shifts and US companies are required to adopt a more rigorous, compulsory and joined up set of data laws, you’ll be well ahead of the game.
Be a leader in the data protection landscape
If you handle the data of EU residents, GDPR compliance isn’t optional. Yet meeting the requirements of the regulation with the support of an EU GDPR consultant does far more than tick the box of compliance. It protects you against data breaches. It minimizes the risk of penalties. It helps to build trust among American consumers concerned about what companies do with their data. And it positions you as a leader in the evolving data protection landscape.
Appoint your GDPR EU representative
Find the right EU GDPR consultant for you now, get data protection advice or, for questions about your next steps, call +1 303 317 5998.