General Data Protection Requirements: A Practical GDPR Guide for Small Businesses
The General Data Protection Regulation (GDPR) establishes comprehensive requirements for protecting personal data that apply regardless of business size. This guide provides practical insights into general data protection obligations for small businesses processing personal data of EU residents.
Table of Contents
Understanding Core GDPR Concepts and Obligations
What Constitutes Personal Data?
Under the GDPR, personal data includes any information relating to an identified or identifiable natural person. For small businesses, this typically encompasses:
- Customer contact details (names, addresses, email addresses)
- Employee records
- Online identifiers (IP addresses, cookie data)
- Financial records
- Marketing databases
- CCTV footage
- Website analytics data
Legal Bases for Processing Personal Data
Before processing any personal data, you must identify and document at least one legal basis. The GDPR provides six options:
1. Consent
When to use: For optional processing activities where individuals should have real choice:
- Marketing communications
- Non-essential cookies
- Collection of special category data
Requirements:
- Freely given through clear affirmative action
- Specific to each processing purpose
- Documented and demonstrable
- Easy withdrawal mechanism
- Clear explanation of processing purposes
2. Contractual Necessity
When to use: For processing required to deliver requested services:
- Order fulfillment
- Service delivery
- Payment processing
- Account management
Example: Processing delivery addresses for online orders or storing payment details for subscription services.
3. Legal Obligation
When to use: For processing required by EU or member state law:
- Tax reporting
- Employment records
- Health and safety documentation
- Regulatory compliance records
4. Legitimate Interests
When to use: For reasonable business purposes with minimal privacy impact:
- Direct marketing to existing customers (with opt-out)
- IT security measures
- Fraud prevention
- Internal administration
Key requirement: Must conduct and document a legitimate interests assessment (LIA) balancing your interests against individual privacy rights.
Transparency Requirements
Privacy Notices
Must provide clear information about:
- What personal data you collect
- Why you process it
- Your legal basis
- How long you retain it
- Who you share it with
- Individual rights and how to exercise them
Practical implementation:
- Create layered privacy notices
- Use clear, plain language
- Make notices easily accessible
- Review and update regularly
- Document all versions
Data Subject Rights
Small businesses must implement procedures to handle these rights:
Right of Access
Implementation steps:
- Create standard request forms
- Establish identity verification procedures
- Document data locations for efficient searching
- Prepare response templates
- Train staff on handling requests
Right to Erasure
Practical considerations:
- Identify all data storage locations
- Document exemptions (e.g., legal obligations)
- Establish processes for third-party notification
- Create erasure verification procedures
- Maintain erasure logs
Security Measures
Technical Controls
Essential security measures include:
- Strong access controls
- Encryption of personal data
- Regular security testing
- Secure backup procedures
- Incident detection capabilities
Organizational Measures
- Staff training programs
- Clear desk policies
- Data protection policies
- Security awareness initiatives
- Regular compliance audits
Data Breach Management
Response Plan Elements
- Breach detection procedures
- Containment measures
- Impact assessment process
- Notification procedures (72-hour deadline)
- Documentation requirements
Required documentation:
- Breach description
- Categories of data affected
- Number of individuals impacted
- Likely consequences
- Measures taken
Practical Implementation Steps
Initial Setup
- Map your data processing activities
- Document legal bases
- Create privacy notices
- Implement security measures
- Train staff
Ongoing Compliance
- Regular reviews of processing activities
- Updates to documentation
- Periodic staff training
- Security assessments
- Compliance monitoring
📍 Remember: General data protection compliance is an ongoing process. Focus on building sustainable practices that grow with your business while protecting personal data effectively.
Conclusion
Effective general data protection compliance requires:
- Understanding your obligations
- Implementing appropriate measures
- Maintaining documentation
- Regular review and updates
- Ongoing staff awareness
Essential Action Items:
- Document your processing activities
- Implement required safeguards
- Create response procedures
- Train your team
- Review regularly
Stay informed about general data protection developments and maintain consistent attention to compliance requirements to build trust with your stakeholders while meeting regulatory obligations.
Noa Kahalon
Noa is a certified CIPM, CIPP/E, and a Fellow of Information Privacy (FIP) from the IAPP. Her background consists of marketing, project management, operations, and law. She is the co-founder and COO of hoggo, an AI-driven Digital Governance platform that allows legal and compliance teams connect, monitor, and automate digital governance across all business workflows.