The General Data Protection Regulation (GDPR) places legal obligations on businesses that handle the personal data of individuals in the European Union (EU). One requirement that non-EU businesses often overlook is the need to appoint an EU-based data protection representative. If your company processes EU data but has no physical presence in the EU, failing to appoint a data protection representative can lead to enforcement actions and substantial fines from regulatory authorities.
Consequences of Non-Compliance
If your business is based outside the EU but:
- Offers goods or services to people in the EU, whether free or paid.
- Tracks or monitors the behavior of individuals in the EU, including through website analytics or targeted advertising.
then you are legally required to designate a GDPR representative. This data protection representative acts as your official point of contact for EU regulators and individuals regarding data protection matters.
Neglecting to appoint a data protection representative is a breach of Article 27 of the GDPR. EU regulators have the authority to issue fines of up to €10 million or 2% of a company’s global annual turnover, whichever is greater.
Does Appointing a Data Protection Representative Shift Your Liability?
Some businesses mistakenly believe that appointing a GDPR representative transfers their legal responsibility for GDPR compliance. This is not the case. Your company remains fully accountable for meeting data protection standards, ensuring security, and reporting breaches where required.
The data protection representative serves as an intermediary but does not assume liability for your company’s data processing failures. If there is a data breach or regulatory inquiry, your business is ultimately responsible for addressing the issue and facing any legal consequences.
What Are the Responsibilities of a GDPR Representative?
While data protection representatives do not inherit liability for your compliance failures, they do have specific legal duties, such as:
- Acting as a contact point for EU data protection authorities and individuals exercising their GDPR rights.
- Maintaining records of your data processing activities and presenting them to regulators upon request.
- Cooperating with regulators in investigations and compliance inquiries.
However, the data protection representative is not expected to monitor your business’s compliance or enforce GDPR obligations internally—that remains your responsibility. If a data protection representative fails to fulfil their duties, they may face penalties, but this does not reduce your company’s legal obligations.
Selecting the Right GDPR Representative
Choosing a reliable and experienced GDPR representative is essential. They ensure smooth communication with EU authorities, help maintain essential records, and demonstrate your commitment to compliance.
At Kanto, we offer GDPR Representative services tailored to non-EU businesses. By working with us, you maintain a strong legal footing without the complexity of establishing an EU base. Contact us for a free 20-minute discussion to find out how our GDPR Representative services can help you meet EU regulatory requirements.
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