As we’re reaching the four-year mark since the enforcement of the privacy law known as the GDPR, more and more people are starting to talk about the GDPR and B2B companies.
Additional changes and updates in the European Union’s privacy law could occur soon, especially when it comes to first-party and hashed IDs, so all marketers are expected to be familiar with the basics in 2022.
If you’re still unaware of what the GDPR stands for and how it affects businesses, you’re in the right place. We answer all the questions related to the GDPR and B2B below, so keep reading!
The European Union’s GDPR (General Data Protection Regulation) is unarguably the strictest security and privacy law. It was adopted by the European Union in 2016 and enforced in 2018, limiting how the companies can use the EU citizens’ personal data.
Although the GDPR B2B and B2C laws focus only on EU residents, they affect all organizations that target or collect data from the people living within the EU borders.
As a result, the GDPR laws have a global effect on EU and non-EU companies that aim to gather, process, and store customer intent data and other information from other businesses and their customers.
What are the main principles of the GDPR?
The whole idea behind the GDPR can be seen in Article 5, which defines the seven main data processing principles. These main principles include not only lawfulness, fairness, and transparency, but also purpose and storage limitation, data minimization, integrity and confidentiality, accuracy, as well as accountability.
Are B2B companies affected by the GDPR?
The GDPR laws affect any entity inside or outside the EU that uses the data from EU citizens. That means the GDPR affects B2B companies, too. The entities that collect, process, and store personal data can include non-profit organizations, public organizations, for-profit businesses, and sole traders.
Furthermore, personal data is defined by the GDPR as any data relating to a living person. Any piece of information that can help identify a person is considered to be personal. For instance, IP addresses are considered personal data by the GDPR laws.
Are there any GDPR B2B rules in place?
The previously mentioned seven principles from Article 5 can be considered rules or guidelines for B2B organizations. The seven principles should be at the center of all collecting, processing, and storing decisions B2B companies make.
They are the foundation of the GDPR law, and B2B companies should consider them carefully.
How is B2B marketing affected by the GDPR?
The GDPR affects B2B marketing by restricting it to the personal data processing of similar businesses and their clients. Namely, the GDPR requires a legal basis to make B2B marketing a possibility.
Those legal bases include:
● Legal Obligation;
● Legitimate Interest;
● Public Task;
● Vital Interests.
Companies that want to incorporate personal data into their marketing activities must legitimately apply for at least one of the abovementioned legal bases. Only then can they collect, process, and use personal data for marketing purposes.
Are the GDPR laws different for B2B and B2C companies?
Generally speaking, the GDPR laws don’t differentiate between B2B and B2C businesses, and both business types follow the same rules. However, some minor differences do take place in practice.
For instance, B2B businesses have an easier time providing a legal basis for their activities. If a company wants to send promotional emails, it’s easier to do so with other business email addresses than personal ones.
In fact, business email addresses that don’t tie to a specific person don’t even belong in the personal data category, so B2B businesses can freely use them.
Since there’s such a thin line between what is considered personal or not, it’s best to consult an expert who will tell you more information about your specific case.
How do B2B companies comply with the GDPR laws?
Complying with the GDPR B2B laws doesn’t have to be challenging for organizations. Here are some valuable tips you can implement to stay on track with the latest GDPR requirements.
● Use data minimization: The more data you use, the higher the risk of complying with the GDPR laws. Strategize your moves and proceed with caution.
● Review your legal basis: Hire a legal professional or a GDPR expert to go over your legal bases needed for personal data processing.
● Store valuable data: Keep all your data processing records stored safely and securely. ● Ask for consent: Always ask for permission to store data and keep authentic consent records.
The GDPR B2B laws and regulations limit how countless businesses and organizations collect, manage, and use other people’s personal data. Whether you’re an owner of a B2B or a B2C company, being informed about these legal regulations is a must if you want to stay under the radar.
With the newest changes around the corner, now’s the perfect time to learn the fundamentals of the GDPR laws and take action to stay compliant. Failing to comply with the regulations could result in hefty fines and other sanctions, including liability damages.