Online presence in the shadow of GDPR – rules for consent-based data processing
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In order to remain competitive, it is no longer merely an advantage for companies to have an online presence, but a fundamental requirement. Websites and newsletters facilitate communication with customers, while providing an opportunity for addressees to learn about the latest services and offers firsthand. At the same time, it is important to note that this may also involve the processing of personal data, which is subject to Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC („General Data Protection Regulation”; „GDPR”). Accordingly, data processing for marketing purposes is only possible with the express consent of the data subjects, in strict compliance with the requirements set out in the GDPR. In this article, we summarize the most important rules relating to consent-based data processing.
When to apply GDPR?
As outlined by the National Authority for Data Protection and Freedom of Information (“NAIH“) in its material on website privacy settings and cookies, processing the personal data of natural persons acting on behalf of the companies (e.g., employees, private person client) falls under the scope of the GDPR. For instance, collecting, recording, storing, and using a customer’s name, phone number, address, email address, or bank account number constitutes data processing. It implies that if a company processes data relating exclusively to legal persons, its activities do not fall within the scope of the General Data Protection Regulation, and therefore compliance with its provisions is not mandatory for it. However, in many cases, the contact details of the legal person (e.g., name, personal email address, position) are essential for communication, which involves data processing.
Similarly, subscribing to a newsletter, targeted requests (also known as asking for a callback), or tools that support the effective functioning of websites—such as the use of cookies or visitor measurement – it is essential for the company to process natural persons’ data, which is why this type of data processing will also fall under the scope of the GDPR.
Consent as a possible legal basis for processing personal data
The fundamental rule of data processing is that, in the absence of a valid legal basis, processing personal data is not considered to be lawful. One of the legal bases for data processing – most commonly required for data processing for marketing purposes – is the consent of the data subject.
Conditions for consent
According to the GDPR, consent is valid if it is freely given, specific, based on adequate information, and unambiguous, indicating that the data subject agrees to the processing of his/her personal data.
Freely given
Consent can be freely given if individuals can refuse and withdraw their consent without risk of external pressure or negative consequences. Therefore, it cannot be considered voluntary if the data subject has no real choice, feels pressured to consent, or faces negative consequences from the data controller if they refuse to consent. This was confirmed by the recent opinion of the European Data Protection Board (“EDPB”), which stated that so-called “pay or consent” models do not meet the requirement of freely given consent. This is due to the fact that such models are based on offering data subjects a choice: either they consent to the processing of their personal data, or they pay a fee to prevent their data from being processed.
The voluntary nature of consent also implies that the data subject has the right to withdraw the consent at any time.
Specific and appropriate information
In order for consent to be valid, the purpose of data processing must also be specific. This condition is closely linked to the condition of informed consent. Therefore, individuals must be informed of the specific purposes in simple and easily understandable language so that they have a clear understanding of the purpose for which their data is being processed. This also means that if the purposes of the data processing operation change or further data processing operations are being added, consent must be obtained from individuals again. Likewise, if a data processing operation has multiple purposes, separate consent must be obtained for each purpose for the processing to be lawful. When providing information, the data subject must also be made aware that they may withdraw their consent at any time.
Unambiguous consent
According to the GDPR, a statement by the data subject or a clear affirmative action is required for the consent to be unambiguous. This in fact means that consent can only be given through active action or statement. The EDPB considers that the comprehensive acceptance of general terms and conditions does not constitute an act of confirmation that is unambiguously expressed. The GDPR also expressly prohibits data controllers from offering pre-ticked boxes or opt-out mechanisms that require the data subject to take action to prevent consent from being given (so called opt out systems).
Duration and demonstration of the contribution
The General Data Protection Regulation does not provide for any limitation on the duration of consent. However, this does not mean that personal data can be processed indefinitely with the consent of the data subject. The duration of consent depends in each case on the context of the data processing in question. In order to determine the duration correctly, it is therefore necessary to assess the circumstances of the data processing.
Furthermore, the GDPR stipulates that during data processing, the data controller must always be able to adequately demonstrate the existence of the consent.
Without claiming to be exhaustive, we merely refer to the fact that the General Data Protection Regulation lays down additional conditions in relation to the consent of children and special categories of data.
Summary
The online presence of companies—for example, through websites and newsletters—is essential to maintaining competitiveness, but it can also involve the processing of personal data, which falls under the scope of the GDPR. Personal data may only be processed on an appropriate legal basis, the existence of which is essential in all cases. When developing and enhancing their marketing strategies, it is crucial for companies to simultaneously establish and review their data processing frameworks to ensure that their data processing activities comply with the GDPR.
Photo source: pexels.com, Tara Winstead
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