The European Union’s (EU) new General Data Protection Regulation (GDPR), which goes into full effect in May 2018, creates a comprehensive regulatory regime for the way that personal data of EU citizens will be handled by organizations globally. Organizations that may process (i.e. collect, store, or otherwise handle) personal data of EU citizens are scurrying to be compliant with this strict new framework. The stakes are enormous: The GDPR substantially increases penalties for privacy violations to as much as four percent of a company’s annual global revenue.

How Did We Get Here?

The roots of the new GDPR can be traced back nearly 40 years, when the French parliament approved the Data Protection and Liberties Act in 1978. This law prohibited the processing of “sensitive” data, which included information related to the health or sexual life of individuals, but also any identifying information related to racial or ethnic origin, political opinions, religion or trade union affiliation.

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