As we enter the four years 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 to European Union privacy law may be coming soon, especially when it comes to first-party and hashed IDs, so all marketers are expected to be familiar with the basics by 2022.
If you still don’t know what GDPR stands for and how it affects businesses, you’ve come to the right place. Below we answer all questions related to the GDPR and B2B, so keep reading!
The European Union’s GDPR (General Data Protection Regulation) is undeniably the strictest security and privacy law. It was adopted by the European Union in 2016 and came into effect in 2018, limiting the way companies can use EU citizens’ personal data.
While the GDPR B2B and B2C laws only target EU residents, they affect all organizations targeting or collecting data from the people living within EU borders.
As a result, the GDPR laws have a global effect on EU and non-EU companies seeking to collect, process and store customer intent data and other information from other companies and their customers.
What are the main principles of the GDPR?
The whole idea behind the GDPR can be found in Article 5, which defines the seven main data processing principles. These key principles include not only legality, fairness and transparency, but also purpose and storage limitation, data minimization, integrity and confidentiality, accuracy and liability.
Are B2B companies affected by the GDPR?
The GDPR laws affect any entity inside or outside the EU that uses EU citizens’ data. This means that the GDPR also affects B2B companies. The entities that collect, process and store personal data can be non-profit organizations, public organizations, for-profit companies and sole proprietorships.
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 personal. For example, IP addresses are considered personal data under the GDPR laws.
Are GDPR B2B rules in force?
The one mentioned before seven principles from article 5 can be considered rules or guidelines for B2B organizations. The seven principles should be at the heart of all decisions B2B companies make about collection, processing and storage.
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 limiting it to the: processing of personal data of comparable companies and their customers. The GDPR requires a legal basis to enable B2B marketing.
Those legal grounds include:
● Legal obligation;
● Legitimate interest;
● Public task;
● Vital interests.
Companies wishing to include personal data in their marketing activities must make a legitimate application for at least one of the above 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?
In general, the GDPR laws do not distinguish between B2B and B2C companies, and both types of companies follow the same rules. In practice, however, there are some minor differences.
For example, it is easier for B2B companies to provide a legal basis for their activities. If a company wants to send promotional emails, it is easier to do so with other business email addresses than with personal ones.
Business email addresses that aren’t associated with a specific person don’t even belong in the personal data category, so B2B companies can use them freely.
Since there is such a fine line between what is considered personal and what is not, it is best to consult an expert who will give you more information about your particular case.
How do B2B companies comply with GDPR laws?
Complying with GDPR B2B laws doesn’t have to be a challenge 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 greater the risk of complying with GDPR laws. Strategize your moves and proceed with caution.
Check your legal basis: Hire a legal professional or a GDPR expert to review your legal bases necessary for the processing of personal data.
Store valuable data: Keep all your data processing records safe and secure. Request permission: Always request permission to store data and keep authentic consent records.
The GDPR B2B laws and regulations restrict how many companies and organizations collect, manage and use personal data of others. Whether you own a B2B or a B2C business, being aware of these legal regulations is a must if you want to stay under the radar.
With the latest changes just around the corner, now is the perfect time to learn the basics of the GDPR laws and take action to stay compliant. Failure to comply with the regulations can lead to hefty fines and other sanctions, including liability damage.