The Role of Archiving in GDPR Compliance

While it may seem like a distant concern for companies outside the EU, the General Data Protection Regulation has sent shockwaves through businesses worldwide.

GDPR’s reach is extensive, and non-compliance can lead to severe penalties. Remember the tech behemoths like Meta and Amazon slapped with multi-billion-euro fines? This is not just a cautionary tale, but a stark reminder of the potential risks businesses face if they don’t take GDPR compliance seriously. The threat is real, and the consequences can be devastating.

But it’s not just corporate giants who are under scrutiny.

Medium and small business owners, too, must navigate the complexities of GDPR, including compliant archiving.

Understanding GDPR

The General Data Protection Regulation, the world’s most stringent and comprehensive data protection law, was enacted on May 25, 2018.

The regulation’s primary goal is to give individuals more control over their personal data.

At the same time, GDPR aims to harmonize regulations within the European Union, reduce inconsistencies, and simplify the regulatory landscape for international businesses.

GDPR’s influence extends far beyond the borders of the European Union. It’s a global regulation that applies to any organization processing the personal data of EU residents, regardless of its location.

So, even businesses outside the European Union (EU) that provide goods or services to EU citizens or track their online behavior must follow this regulation.

Key Principles of GDPR

So, what are the key GDPR principles organizations should follow? Understanding these principles is not just a requirement; it’s a source of power and knowledge that can guide you through the compliance process.

1. Lawfulness, Fairness, and Transparency. Data must be processed legally, fairly, and transparently. Consent plays a crucial role here. It must be informed, specific, and given voluntarily.
2. Purpose Limitation. Data collected should be used only for specified, explicit, and legitimate purposes.
3. Data Minimization. Only the data necessary for the specified purposes should be collected and processed.
4. Accuracy. The data must be accurate and, where necessary, kept up-to-date. Every reasonable step must be taken to ensure that inaccurate personal data are erased or corrected.
5. Storage Limitation. Data shouldn’t permit the identification of data subjects for longer than is necessary.
6. Integrity and Confidentiality. Data processing must adhere to strict security measures to safeguard against unauthorized or unlawful handling and accidental loss, destruction, or harm.
7. Accountability. The data controller is responsible for following the other GDPR principles and having proof of such compliance.

Archiving Under GDPR: Why It Matters for Businesses

Due to limited resources, GDPR compliance might seem overwhelming. Still, it is crucial when processing data on EU citizens.

Compliance with GDPR is not just about avoiding legal penalties. It’s about building trust with customers and stakeholders, which can lead to increased business opportunities and a stronger market position. So, while GDPR compliance might seem overwhelming, it’s a crucial step when processing data on EU citizens that can bring significant benefits to your business.

The first step toward compliance is understanding what personal data includes—names, addresses, contact info, IP addresses, and even digital identifiers like mobile device IDs.

The GDPR covers every personal information you collect from your customers, whether through online sales, customer inquiries, or email subscriptions.

Why Should Businesses Care?

For many business owners, “archiving” might invoke images of dusty shelves filled with old files and records. However, in the context of GDPR, archiving represents a much more dynamic and critical process.

Archiving is not just about storage. It’s a critical component of GDPR compliance, involving the creation of a secure, organized system for managing personal data that is no longer needed daily but must be retained for legal or business reasons. It’s a key pillar of GDPR compliance that businesses cannot afford to overlook.

Under GDPR, archiving serves multiple purposes.

• Compliance with Data Minimization and Storage Limitations. By securely archiving unnecessary data, you ensure you’re not holding onto personal information longer than needed, an essential requirement of GDPR.

• Efficiency and Accessibility. Well-organized archives help ensure that you can quickly access specific pieces of data when required—for instance, if a customer exercises their right to access or requests deletion of their data (the ‘right to be forgotten’).

GDPR and Archiving: The Challenge for Companies

Many companies, including those outside the traditional EU regulatory areas, struggle to meet GDPR requirements.

The consequences for non-compliance can be severe, with penalties reaching up to 4% of a company’s global annual turnover or €20 million, whichever is higher.

Common Pitfalls in GDPR-Compliant Archiving

Businesses often struggle with effective archiving under GDPR. Being aware of these challenges can help companies to prepare better for GDPR compliance.

Retention Management

Businesses must set clear data retention periods during data collection. These periods are often influenced by various legal statutes.

For example, according to tax regulations, financial records must be kept for seven years. To ensure compliance with legal standards, it’s essential to archive this data in a format that cannot be altered or deleted during this period.

Balancing Retention with the Right to Be Forgotten

Under GDPR, individuals have the ‘right to be forgotten,’ which may seem at odds with fixed retention periods.

For example, consider a company’s email archiving solution. If a customer who previously consented to email communication withdraws their consent and requests data deletion, the company must have a system to do it immediately, even if the standard retention period hasn’t expired.

This requires flexible, secure archiving processes that accommodate such requests without breaching retention rules.

Cloud Storage and Data Security

As reliance on cloud storage increases, so does the complexity of ensuring robust data security. Businesses using cloud services must guarantee that all personal data is encrypted and that their providers fully comply with GDPR standards.

For more control over physical security measures and data access, some businesses might consider on-premise storage solutions as an alternative.

Yet, it’s important to acknowledge that managing data security in-house also requires substantial investment in security infrastructure and expertise.

Documentation and Audit Trails

Keeping detailed records of changes or access to archived data is critical. An audit trail should document who accessed or modified the data, what changes were made, and when.

This is crucial for tracing the root cause of any discrepancies or breaches and demonstrating compliance during regulatory audits.

Ensuring Data Integrity

Data integrity is vulnerable to gradual corruption, known as bit rot or silent data corruption. These errors accumulate over time, ultimately rendering the data files unusable.

Archiving systems should have automatic error detection and correction mechanisms to prevent decay.

For instance, using replicated data storage with automatic hash value checks can help identify and replace corrupted files, ensuring the long-term reliability of archived data.

Implementing Effective Archiving Practices

We’ll explore several critical practices to help you implement an archiving system that meets legal standards while supporting your business objectives.

• Evaluate What Needs to Be Archived. Review the data you collect regularly to determine what data you need to keep for legal reasons or business use and what can be deleted. This step helps maintain compliance with the GDPR’s data minimization principle.

• Choose the Right Archiving Solutions. Whether it’s cloud storage, local servers, or even physical filing systems, ensure that your archiving solution meets GDPR security requirements. Look for features like encryption, access control, and audit trails.

• Ensure Easy Retrieval. Archived data should be organized and indexed to facilitate quick retrieval. This is crucial for responding efficiently to data subject requests for access, correction, or deletion.

• Regular Audits and Updates. Just as your business evolves, so should your archiving practices. Conduct regular audits to ensure your archiving method is compatible with GDPR and reflects current operational needs.

Wrapping Up

Achieving GDPR compliance involves optimizing IT infrastructures and archive systems, not just documenting processes. Investing in a GDPR-compliant IT infrastructure is crucial, as data breaches can lead to substantial financial penalties.

To mitigate these risks, businesses must prioritize creating the necessary infrastructure, revising processes, and ensuring data is stored and archived in compliance with GDPR.

Marija Charles