The European Union (EU)’s General Data Protection Regulation (GDPR) isn’t just a European concern. As GDPR-U.S. interactions become more complex, international businesses (including American ones) must comply with this regulation when handling data from EU citizens. If your company collects, processes, or stores data from the EU or European Economic Area (EEA)—including Iceland, Norway, and Liechtenstein—GDPR compliance is a legal requirement.
Navigating GDPR from a U.S. perspective can feel overwhelming, especially for its strict data privacy and accountability guidelines. Regulatory changes like the EU Cyber Resilience Act require staying current with evolving compliance requirements.
Compliance is more manageable with the right understanding and tools. This article will explain what GDPR means for U.S. companies, key requirements, and actionable steps to ensure your organization meets these standards.
GDPR is one of the world’s most influential and far-reaching data privacy laws. It became directly applicable in all EU member states in 2018. These regulations aim to give individuals greater control over their personal information and give organizations responsibility for collecting, processing, and storing that information.
GDPR focuses on seven key principles:
This means businesses must process data lawfully and transparently, limit collection to what’s necessary, and store data accurately and safely.
For individuals, GDPR introduces fundamental rights, such as:
GDPR for U.S. companies applies if your organization handles the personal data of individuals in the EU or EEA. Unlike location-specific standards like the California Consumer Privacy Act, GDPR has an extraterritorial reach.
The GDPR applies to any organization, regardless of location, that:
This means that even U.S. companies have to comply if they handle EU data. It’s not about where your business operates, but whose data you’re handling and how. For example, if you run an e-commerce store in California and someone from Germany purchases your product, GDPR kicks in. Similarly, if your website uses cookies to track visitors from the EU or EEA, you’re subject to GDPR compliance.
The key factor is whether your business targets EU or EEA residents. This includes offering goods or services in EU or EEA languages or currencies, mentioning the countries in marketing, or tracking these users online.
Having occasional contact with EU or EEA residents doesn’t automatically exempt you from GDPR. Assume that these standards apply unless you can definitively demonstrate that you are not targeting these individuals.
It’s also worth noting that GDPR applies to U.S. citizens while they’re physically in the EU or EEA. For example, if an American tourist in Paris uses an app or makes an online purchase during their stay, their data falls under GDPR protection.
The key takeaway: If EU or EEA residents' data flows through your systems in any meaningful way, GDPR compliance is mandatory.
If your company is subject to GDPR, you must meet several legal, operational, and technical requirements. Here’s what to do:
The first step is to understand when GDPR applies to you. Conduct a scope assessment to identify your obligations and create a focused and effective compliance strategy.
You can’t protect what you don’t understand. Perform a data audit to document every stage of your data processing activities. This includes identifying what personal data you collect, where it’s stored, who has access to it, and how it’s shared. Pay close attention to third-party vendors that may process data on your behalf and make sure they meet GDPR standards, too.
Under GDPR, every data processing activity must have a legal basis to make sure you’re fulfilling general legal obligations.
These bases include:
GDPR requires informing users about their rights to access, modify, and delete their data, so privacy policies and notices must be transparent and accessible. Clearly outline what data you collect, how you use it, and how users can exercise their rights.
If your company processes large volumes of data, handles sensitive data, or monitors individuals systematically, you may need to appoint a Data Protection Officer (DPO). The DPO ensures compliance, serves as a point of contact with regulatory authorities, and oversees data protection policies.
Non-EU businesses processing EU/EEA residents' data have to appoint an EU-based representative. This individual is the primary contact point for data protection authorities and EU data subjects.
This requirement doesn’t apply if EU data processing is occasional, doesn’t involve large-scale processing of sensitive data, and is unlikely to result in a risk to individuals' rights and freedoms.
Technical and organizational safeguards—like implementing encryption, pseudonymization, and access controls—are non-negotiable. Regular security audits and vulnerability assessments help identify and mitigate risks.
GDPR mandates swift action in the event of a data breach. Companies must notify EU/EEA authorities within 72 hours and inform affected users if their rights are compromised.
Achieving GDPR compliance is about taking clear, actionable steps to meet them. Here’s a practical checklist to guide your compliance journey:
Navigating GDPR compliance as a U.S. company involves auditing data flows, securing third-party agreements, ensuring legal bases for processing, and preparing for potential breaches. As with other evolving standards, like the PCI DSS, compliance requires an ongoing commitment to transparency and strong data protection practices.
Legit can map your application security guardrails to GDPR regulations and identify security gaps to obtain compliance. We then provide real-time monitoring and alerts on compliance violations.
Schedule a demo to learn how you can use Legit Security to address compliance gaps, mitigate risk, and foster customer trust—all while simplifying the path to ongoing GDPR compliance.