Importance of Data Protection Post-Brexit
Since the UK’s exit from the European Union, the General Data Protection Regulation (GDPR) has been adapted into the UK GDPR. Although the UK’s regulation mirrors much of the EU’s framework, changes are expected as the UK tailors its data protection laws to better suit its own needs. With the introduction of the Data Protection and Digital Information (No. 2) Bill, businesses across all sectors, particularly in e-commerce, healthcare, and CBD, should prepare for updates that may alter how customer data is collected, stored, and used.
These updates are essential due to the increasing reliance on customer data, especially in sectors that handle sensitive information. Data breaches not only result in financial penalties but can also severely damage a company’s reputation. For industries like CBD retail, which often handle health-related data, compliance with evolving UK GDPR is crucial to maintaining trust and avoiding penalties.
The UK's updated data protection regulations will continue to prioritise customer consent and transparency. However, 2025 is expected to bring reforms that reduce administrative burdens while still maintaining high standards of data protection.
Action for Members: Ensuring Compliance
For members of the Cannabis Trades Association (CTA), it is critical to review and update data protection practices in light of the expected regulatory changes. Businesses that handle sensitive data, such as health information collected during CBD sales, should conduct thorough audits of their data protection measures. The introduction of the Data Protection and Digital Information (No. 2) Bill emphasises the need for businesses to ensure that their policies are in line with both current and future regulations.
One key recommendation is to appoint a Data Protection Officer (DPO), especially for businesses dealing with significant volumes of personal or sensitive data. The DPO would be responsible for overseeing compliance with UK GDPR and adapting to any changes in the law. This move not only safeguards against fines but also strengthens customer trust in the business.
We’ve created a Data Protection Review Toolkit you can download here
Data Protection Review Toolkit for members
Why Compliance is Crucial: Risks and Penalties
Non-compliance with data protection regulations can result in severe financial penalties, with fines of up to £17.5 million or 4% of a company’s global turnover. Beyond the financial aspect, businesses also face reputational risks, particularly in industries where sensitive health data is processed. For businesses in the CBD sector, where customer data may include medical information, ensuring compliance is not just about avoiding penalties but about maintaining a solid, trustworthy relationship with customers.
As 2025 approaches, the UK government is pushing for a framework that simplifies compliance while maintaining international data adequacy. The Data Protection and Digital Information (No. 2) Bill aims to reduce the administrative burden on businesses by cutting unnecessary paperwork. However, businesses will still need to be vigilant about ensuring that their data protection practices align with both UK and international regulations. Failure to do so could expose businesses to financial penalties and loss of consumer trust.
Looking Ahead: Preparing for Regulatory Changes in 2025
The upcoming changes under the Data Protection and Digital Information (No. 2) Bill will focus on making compliance easier for businesses while ensuring robust data protection. Some of the key changes expected include:
Reduced Paperwork: Only high-risk processing activities will need detailed compliance paperwork, reducing the burden on smaller businesses. This is particularly relevant for industries like CBD, where businesses deal with sensitive customer data but may not process it at high volumes. Read more: https://www.gov.uk/government/news/british-businesses-to-save-billions-under-new-uk-version-of-gdpr
Flexible Consent Rules: Businesses will have more clarity on when they can process personal data without explicit consent, particularly when it’s in the public interest, such as in law enforcement or national security. More details: https://www.prospectlaw.co.uk/data-privacy-regulation-looking-to-2025-and-beyond
Digital Identity Framework: The bill introduces secure digital identity verification, making transactions and customer interactions more efficient. This can greatly benefit e-commerce and CBD businesses that rely on digital verification for customer transactions. See the reforms outlined here: https://commonslibrary.parliament.uk/research-briefings/cbp-9234/
AI and Automated Decision-Making: Increased regulation of AI-driven data processing will ensure robust safeguards for consumers, further protecting their rights in the digital economy. Read more about AI regulations: https://www.doyleclayton.co.uk/news-resources/data-protection-in-2025
Businesses, especially in sectors like e-commerce and CBD that handle sensitive data, must stay proactive. The evolving landscape of UK data protection will require continuous updates to policies and practices. Being prepared for these changes will not only help businesses avoid penalties but also position them as trustworthy and compliant in the eyes of their customers.
For more detailed information on the upcoming changes, see the official bill here: https://bills.parliament.uk/bills/3142
Published - 16/10/2024
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