Posted: Tue 9th May 2023

Updated: Tue 9th May

Offshore Companies, Online Vendors, and GDPR Compliance

North Wales news and information

When it comes to using offshore online vendors, you’ll need to make sure they are GDPR compliant. It is best to avoid vendors who are not compliant. You can always resume contact when their work is complete.

The GDPR is a significant data privacy law that was introduced in May 2018. It is meant to protect the personal data of EU citizens.

Are offshore companies affected by GDPR?

The term offshore company refers to a business that operates in a location outside of its home country. An offshore company must maintain a license in the country where they conduct business. For example, an offshore company that operates as an International Lottery Provider will carry a license and insurance wherever they offer their services.

The GDPR is a European Union data protection law that aims to give EU citizens more control over how their personal information is used. It applies to all companies collecting, processing, and storing EU citizens’ personal data, regardless of location.

It also covers non-EU companies that are not established in the EU. These companies are regulated if they offer goods or services to EU citizens, monitor the behavior of EU consumers, or accept payments in Euros.

A company must ‘envisage’ (Recital 23) the sale or provision of goods and services to EU citizens for GDPR to apply. This can be tricky and is often based on circumstantial evidence, such as the currency, language, top-level domain name, targeted advertising, and shipping options offered.

How can you identify a GDPR-compliant company?

If you use an offshore (online) vendor to process data about your customers or users, it is crucial that you make sure the company is GDPR compliant. This is because the GDPR has an extraterritorial application, meaning that it impacts all companies that deal with the personal data of EU citizens, even if they don’t have offices in Europe.

The regulation aims to give individuals control over their personal data by setting new standards for its use. It also aims to simplify data regulation for businesses internationally by unifying European law.

Tips to make sure your marketing is legal

Legal marketing is a massive part of the business world. It involves everything from content creation to advertising and branding.

Regarding legal marketing, it’s essential to understand the laws and regulations that apply to your specific industry. Here are some tips to make sure your marketing is legal:

One of the most significant issues is data privacy and protection. It’s critical to make sure you are GDPR compliant if you collect personal data from EU customers.

Here are a few tips:

  • The offshore vendor should publish their privacy policy on their website.

  • They should be able to provide a GDPR map of their progress and good standing with the law.

  • Offshore companies are responsible for verifying all third-party companies they are associated with are also GDPR compliant.

  • Educate all employees on your privacy policy and private data and information laws.

  • Maintain detailed records on all actions taken to ensure compliance.

Where to go for help?

The upcoming GDPR has the potential to significantly impact all businesses that interact with EU citizens, no matter where they are located. The good news is that it is relatively easy to get compliant and will not cost you a fortune.

Companies that do not have qualified associates to take care of the GDPR regulations, there are many reputable firms that specialize in ensuring you stay ahead of the curve. For instance, the team at Osano monitors all relevant privacy law changes and alerts you to any new ones in your sphere of influence. Look for a company that offers a data protection advisory service that is designed to help you meet your compliance objectives. Many firms such as this offer their compliance services remotely.

Conclusion

GDPR focuses on privacy and data protection, ensuring that companies know where their customers’ personal data is and how it is used. Its key attributes include fines and penalties for data breaches, documentation of activities to ensure data privacy and protection, and the establishment of a data protection officer (DPO).

Organizations should conduct a thorough pre-contracting diligence process to assess offshore vendors to identify potential privacy and security standards gaps. These processes should evaluate administrative, physical, and technical safeguards in place and the vendor’s vetting of its staff.

While it takes effort and works to become compliant, it is easily maintained and does not have to be extremely expensive to create. Knowledge is key. This is true for individuals, business owners, and those they employ. Once your policy is verified by your legal team, and put into action, maintaining it is relatively easy. Non-compliance is costly and time-consuming. Now is the time to take action to protect your business and your clients.



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