The Do’s and Don’ts of GDPR Compliance for eCommerce

GDPR has been in force since 2018, and ss an eCommerce business in UK, ensuring compliance with GDPR regulations is crucial.  GDPR has transformed how businesses handle customer data, especially in the eCommerce sector where data is central to personalisation, marketing, and transactions. Non-compliance can lead to significant fines, reputational damage, and loss of customer trust. Here’s a detailed guide on the do’s and don’ts to ensure your eCommerce store remains GDPR-compliant.

What Is GDPR and Why It Matters?

The GDPR, General Data Protection Regulations, are a set of privacy laws that took effect on the 25th of May 2018 in the European Union to give individuals greater control over their personal data. Although the UK is no longer part of the EU, GDPR principles still apply under UK law.

The ultimate goal when complying with the UK GDPR is to create a culture of data protection and privacy compliance. ****For eCommerce businesses, GDPR compliance means handling customer data responsibly, whether it’s email addresses for newsletters, shipping details, or browsing behaviour. Failure to comply with GDPR regulations can lead to fines of up to €20 million or 4% of annual global turnover, whichever is greater. Making your eCommerce GDPR compliant is very important not only to save you from a big fine but especially building trust and transparency with your customers enhancing data security.

The Do’s of GDPR Compliance

Below are key practices that eCommerce business should adopt to align with GDPR requirements effectively:

1. Obtain Explicit Consent:

GDPR requires businesses to obtain explicit, informed consent from customers before collecting and processing their personal data. Consent must be freely given, specific, unambiguous and easily withdrawable. This means:

• No pre-ticked checkboxes: Use checkboxes for consent instead of pre-ticked boxes.
• Clear language: The language used to obtain consent must be clear and easy to understand, avoiding legal jargon or complex terms.
• Granular consent: Clearly explain why you’re collecting customer data and how it will be used. If you are collecting data for multiple purposes (e.g. email marketing, analytics) you must obtain separate consent for each purpose.

2. Prioritise Data Security:

Data security is a cornerstone of GDPR compliance. Invest in robust security measures to protect customer data from breaches. It requires:

• Encryption: Use SSL certificates for encrypted transactions.
• Access controls: Implement strict access controls to limit who can view or modify customer data.
• Security audits: Conduct regular security audits to identify vulnerabilities and ensure your security measures are up-to-date.

3. Provide Transparent Privacy Policies:

Always be transparent about collecting, using, and protecting personal data. Write a clear privacy policy that outlines:

• Easily accessible: Make sure your privacy policy can be easily accessible to customers, ideally linked in the footer of your eCommerce website and during checkout.
• Clear and concise: Your privacy policy should be written in clear and plain by avoiding legal and complex language.
• Regularly updated: Ensure your privacy policy is up-to-date with any changes in GDPR regulations.

4. Enable Easy Data Access and Portability:

Data portability is another important GDPR right, allowing customers to request their data or transfer it to another service provider, demonstrating your commitment to transparency and trust. This allows customers to:

• Access their personal data upon request.
• Download their data in a readable format (e.g., CSV).
• Transfer their data to another service.

5. Regularly Train Your Team:

Educate your employees on GDPR principles to avoid sharing customer data unnecessarily and ensure only authorised personnel access sensitive data.

6. Notify of Data Breaches:

According to the GDPR rules, in case of a data breach involving personal data, inform the appropriate Data Protection Authority (DPA) within 72 hours and the affected customers if their data was breached.

The Don’ts of GDPR Compliance

To effectively comply with the GDPR, eCommerce businesses must avoid some common pitfalls that might lead to potential penalties:

1. Don’t Collect Unnecessary Data:

GDPR requires data minimisation so only collect what’s strictly necessary. Do not collect more personal data than necessary information during account creation or checkout. Only gather information that is essential for your business operations, such as processing orders or improving customer experience.

2. Don’t Assume Consent:

Inadequate consent mechanisms can result in fines and penalties. Customers must actively opt-in to comply with GDPR. Avoid using pre-ticked boxes or vague language to gain consent. Always ask for explicit permission before collecting or using customer data.

3. Don’t Ignore Data Breaches:

Do not assume that a data breach will not happen. Have a response plan in place to address potential breaches promptly and notify affected individuals as required by GDPR to avoid risks.

4. Don’t Neglect Third-Party Compliance:

You’re responsible for ensuring all third-party processors are GDPR-compliant. Failing to ensure that can risk  your own compliance. Always verify that any external service providers adhere to data protection standards.

5. Don’t Store Data Indefinitely:

GDPR mandates that data must be deleted when no longer needed. Keeping customer data indefinitely without a clear retention policy.

Best Practices for GDPR Compliance

Navigating GDPR compliance may seem overwhelming, here are some best practices to ensure GDPR compliance as an eCommerce business:

1. Conduct Data Audits:

Begin by thoroughly auditing the data you collect, store, and process to ensure compliance. Identify where the data comes from, how it’s stored, who has access to it, and what it’s used for.

2. Invest in Technology:

Tools like Shopify offer built-in GDPR-compliant features, such as cookie consent banners and data anonymisation.

3. Data Protection Officer (DPO):

If your business is large and processes significant amounts of sensitive data, consider appointing a DPO to oversee compliance.

4. Regularly Review Policies:

Keep your privacy policy and terms updated with any changes in your data practices.

Conclusion

Ultimately, with more and more countries around the world recognising the importance of data privacy, customers on a global scale feel much more comfortable about sharing their precious data. At WIRO, we’ve helped brands like many brands achieve compliance while enhancing customer trust and operational efficiency. Our expertise in eCommerce strategy, technical audits, and customer experience design ensures your store remains compliant while scaling effectively.

If you’re unsure about your compliance status, consider seeking professional help to navigate this complex regulatory landscape.

Ready to secure your eCommerce store’s compliance? Contact WIRO today.