If your plan is to generate business on-line within the European Union, then you will need to engage the services of an international business lawyer who has experience in electronic commerce. Such a professional can provide you with comprehensive advice from the initial planning stages of this initiative and will help you to avoid common pitfalls and dead ends.
You will also need this service as a tool for legal compliance. It can also provide inside knowledge of the European market, thus ensuring that you are well versed in local uses, customs, language and needs, which in these turbulent times, are being constantly modified.
Data protection on the Internet began in the European Union in 2018 and the EU privacy protection process has much greater relevance than parallel processes in the United States.
Online Business Law Compliance
Tackling the European market is a significant challenge, given its magnitude.
You have to consider the fact that you must understand the regulations and requirements of each country that you wish to operate in. And also the requirements of European law in general.
Failure to comply with these legal provisions may not only be onerous in terms of the amount of applicable fines. Losing the confidence of this market would result in the failure of a unique opportunity for a magnificently expanding business.
European law is made up of regulations and directives that are applicable in all its states and to all of the members that it is composed of.
E-commerce directive
It is essential to be up to date about this directive and its operation. There is a lot of information that is mandatory to provide to the user; such as name, address, email of the service provider. As well as additional data, that may vary depending on the type of business that is being established.
This protects not only the confidentiality of the consumer, but also that of the business and ensures transparency of the information provided.
General Data Protection Regulation (GDPR)
This regulation affects every company (whatever activity it engages in), or country that involves a commercial operation. That makes use of the data of citizens of the European Union. Whether this is to save, manage or treat them.
The privacy policy is mandatory. You must inform the data owner of the purpose for which this information will be used and who will have access to it, so that they are protected in a consensual manner.
It protects whoever provides the data, giving the client the benefit of being able to demand that at some point the data provided can be deleted, either because it is no longer necessary, or because it has been obtained in some way that is not legal.
This forces companies to protect the privacy of their consumers. And in case there are any gaps where data can be improperly used or stored, the applicable fines are extremely costly.
A Review of Practical Aspects of GDPR
GDPR defines personal data as any information that can identify a person, either directly or indirectly. This includes obvious data such as names and addresses, as well as less obvious information like IP addresses and biometric data. It is essential to understand what personal data you are handling and how you use it.
To collect and process this data, you must obtain explicit consent from users. This means you must clearly inform individuals about what data is being collected, for what purpose, and for how long it will be retained. Consent must be freely given, specific, informed, and revocable at any time. Additionally, you must provide users with easy mechanisms to withdraw their consent if they wish.
User Rights
GDPR grants users several key rights over their personal data, and it is crucial that your company respects these rights:
- Right of Access: Users have the right to request and obtain a copy of their personal data that you hold. You must have procedures in place to respond to these requests efficiently and within the timeframe stipulated by the regulation.
- Right of Rectification: Users can request correction of inaccurate or incomplete data. You must allow them to update their information and ensure changes are reflected in your systems in a timely manner.
- Right to Erasure: Users can request the deletion of their personal data when it is no longer necessary for the purposes for which it was collected, or if they have withdrawn their consent. You must have a process for securely deleting data and confirming its removal.
- Right to Data Portability: Users have the right to receive their data in a structured, commonly used format and to transmit that data to another data controller. Implementing systems that facilitate data export is crucial for complying with this right.
- Right to Restrict Processing: Users can request that processing of their data be limited in certain cases, such as when they contest the accuracy of the data or object to its processing. You must respect these restrictions while the requests are resolved.
The Privacy Policy must be transparent and easy to understand, explaining how personal data is collected, used, stored, and protected. It must be accessible at all times to users.
You must maintain a detailed record of all data processing activities, including the types of data processed, the purposes of processing, and the recipients of the data. This record will help demonstrate compliance in the event of audits.
Security and Technical Measures
GDPR requires you to implement appropriate technical and organizational measures to protect personal data against unauthorized access, loss, or destruction. This includes:
- Data Encryption: Using encryption to protect data in transit and at rest. Encryption helps ensure that personal data is unreadable to unauthorized individuals.
- Access Controls: Establishing robust access controls to ensure that only authorized personnel have access to personal data. This includes multi-factor authentication and permission management.
- Incident Response Plan: Having an incident response plan to handle security breaches. This plan should include procedures for identifying, containing, assessing, and reporting data breaches within 72 hours if the data is compromised.
Key Aspects of Legal Compliance
First, conducting regular legal audits is essential. These audits help review and ensure that all operations and business practices comply with current regulations. Keeping up-to-date with constantly changing laws and regulations is crucial to avoid non-compliance. Implementing regular audits ensures that any deviations or risk areas are identified and addressed promptly.
Proper documentation and record-keeping also play a crucial role. It is important to maintain complete and accurate records of all transactions, policies, and procedures. This documentation is not only necessary for legal compliance but also serves as evidence in case of audits or disputes. A good document management system facilitates accessibility and transparency, helping to demonstrate compliance with applicable regulations.
In the case of financial transactions, adhering to regulations related to payment and money transfer handling is fundamental. This may include complying with security standards such as PCI-DSS and payment service directives. Proper management of financial information and protection against fraud are key aspects of maintaining the integrity and security of transactions.
Finally, resolving conflicts and defining jurisdiction is essential for managing any disputes that may arise. Clearly establishing the competent jurisdiction and mechanisms for conflict resolution helps ensure that any disagreements are handled efficiently and in accordance with applicable law. This not only facilitates problem resolution but also protects the company from potential legal and financial risks.
International Lawyers
An international law firm in Miami advises regarding all mandatory provisions that must be fulfilled in online commerce. Thus, avoiding legal omissions that lead to costly problems since its inception, both in monetary and constitutional aspects of the venture.
It will also indicate the volume of data that we must deliver and at what moment of the operation to provide it, through its supervision.
Our firm is constantly updated on all international commercial regulations, and especially that of the European Union. Our international business lawyers have the necessary dynamics to avoid being caught in any regulatory aspect that is essential in international digital trade.