When I received a recent notification from KLM about a data breach, it caught my attention — not only as a customer but also as someone who works with data protection issues. The airline explained that a fraudster had gained limited access to a third-party system used for customer service. While no payment cards, passports, or booking details were compromised, some personal data such as names, contact information, Flying Blue numbers, and even past customer service remarks were exposed.
KLM followed the right steps: informing affected customers, reporting the incident to the Dutch Data Protection Authority, and reminding everyone to stay vigilant against phishing. This is exactly what GDPR requires. But it got me thinking: what happens when companies outside Europe face similar incidents? That’s where the often-overlooked obligation to appoint a data protection representative comes into play.
The Regulatory Angle
Under GDPR, organizations must notify regulators and affected individuals of certain data breaches. For EU-based companies like KLM, this obligation is straightforward. But what about companies without a physical presence in Europe that still process the personal data of EU residents?
The answer lies in GDPR Article 27: such companies are required to appoint a data protection representative in the EU. Similar rules apply under the UK GDPR and Switzerland’s revised Federal Act on Data Protection (FADP).
What is a Data Protection Representative?
A data protection representative is a local contact point for:
- Supervisory authorities, who may need to investigate or request information following a breach.
- Individuals (data subjects), who may want to exercise their rights, such as access or deletion requests.
In practice, this representative bridges the gap between foreign organizations and local enforcement bodies. Without one, companies risk fines for non-compliance, on top of any penalties arising from the incident itself.
Why This Matters in Breach Scenarios
The KLM breach serves as a practical example. Because KLM is based in the EU, it reported directly to the Dutch Data Protection Authority and contacted its affected customers. But if a U.S. or Asian company experienced a similar breach impacting EU, UK, or Swiss customers, its local data protection representative would be the one ensuring:
- Prompt communication with regulators like the Dutch Data Protection Authority.
- Efficient coordination of customer notifications.
- Legal compliance with breach reporting requirements.
Without a representative, the company could face regulatory enforcement not just for the breach but for failing to appoint a representative in the first place.
Who Needs a Data Protection Representative?
You must appoint a representative if:
- You are outside the EU/UK/Switzerland.
- You process personal data of residents in those jurisdictions.
- Your processing activities are more than occasional, and involve offering goods/services or monitoring behavior.
The only exemptions are for very limited, occasional processing that does not involve sensitive data.
Benefits of Appointing a Representative
- Compliance Assurance: Satisfy a core legal requirement under GDPR, UK GDPR, and Swiss Act on Data Protection.
- Risk Mitigation: Avoid fines and penalties for failing to designate a representative.
- Efficient Communication: Provide local regulators and individuals with a direct, reliable contact.
- Reputation Management: Demonstrate accountability and responsiveness in case of incidents.
Building Trust Through Compliance
Data breaches erode trust, but swift, transparent communication can help rebuild it. The KLM case shows that even when sensitive data is not involved, affected individuals deserve clarity, guidance, and protection. For companies outside Europe, ensuring this kind of response requires more than goodwill — it requires a legal foothold in the form of a data protection representative.
As breaches become increasingly cross-border, data protection is no longer just a security issue — it’s a matter of compliance, communication, and customer confidence. And appointing the right representative ensures that when the unexpected happens, your company can respond lawfully, swiftly, and effectively. Book a free 20-minute call with Kanto today to find out how we can help you appoint the right representatives.
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