5 June 2018
Businesses operating in South Africa are currently facing the imminent implementation of the Protection of Personal Information Act 4 of 2013 (POPI); however there is much debate as to whether businesses need to also comply with the EU’s counterpart to POPI, the General Data Protection Regulation (GDPR), which came into effect on 25 May 2018.
GDPR is clearly not South African law but it governs the manner in which businesses collect, process and store personal data that could lead to the identification of an individual who is resident in the EU or is a citizen of any member country of the EU, including the UK, regardless of his/her country of residence at any given time. Such individuals have the right to know how, what, when, where and why their personal data is being processed.
Accordingly, GDPR will apply to businesses in South Africa that:
Should a business process or control personal data in any of the above circumstances, the business must take steps to ensure compliance with GDPR, by:
If GDPR is applicable to a business, one must determine whether a Data Protection Officer (DPO) needs to be appointed within the organisation. GDPR provides that if GDPR is applicable to the business, it may be compulsory for the business to appoint a DPO if (i) the processing is carried out by a public authority; (ii) the business’s core operations include the processing of data through mass systematic and regular processing; or (iii) it processes sensitive data of a data subject on a large scale.
Aside from the high non-compliance penalties (€20 million or a fine up to 4% of the business’s global revenues (whichever is the greater)), the main reason South African businesses need to comply with GDPR is because the EU is one of South Africa’s largest trading partners and EU businesses are unable to trade with South African businesses unless they comply with the requirements of GDPR.
With globalisation and the ease of cross border transactions, it is essential that South African businesses constantly ensure that they have a global view on data protection in order to ensure compliance and avoid penalties.
(1) Processor is any party doing the actual processing of the data, whether based in the EU or not
(2) Controller refers to any organisation that dictates why and how the data is processed