The UK government has announced several new regulations around data compliance that will come into effect in 2023. These new laws will impact how businesses across the UK collect, process, store and protect user data.
While the specific details are still being finalized, businesses need to start preparing now to avoid penalties, lawsuits and reputational damage. This article provides an overview of the upcoming regulations and actionable steps UK companies should take to achieve compliance.
Understanding the New Data Regulations
There are two major regulatory changes UK businesses need to be aware of:
The Data Protection Act
The Data Protection Act (DPA) will replace the UK GDPR and overhaul current data protection laws. The DPA adopts features of the EU’s GDPR but with several key differences:
- It focuses more on protecting children’s data privacy. Stronger safeguards will apply when processing children’s personal information.
- The age of digital consent may be raised from 13 to 16 years old.
- There are higher fines – up to 4% of global annual revenue or £17.5 million, whichever is greater.
- Data transfers to non-adequate countries will face stricter requirements.
Overall, the DPA enhances citizens’ data rights while imposing stricter obligations on companies collecting or processing personal data.
The Digital Markets, Competition and Consumer Bill
The upcoming Digital Markets Bill aims to promote competition and consumer welfare in the digital economy. Key aspects include:
- User control over data. People should have more control over their data held by platforms.
- Data mobility. Users can request their personal data be transferred to other platforms.
- Fairness by design. Systems and algorithms must not discriminate or exploit consumers.
- Increased transparency. Details on how businesses use data to profile and target people.
Together these regulations will force companies to overhaul their data strategies and systems. Those that fail to comply face substantial penalties.
How Businesses Should Prepare
To avoid falling afoul of the new regulations, UK companies need to take several steps:
Perform a Data Audit
- Catalog all personal data your company collects, processes, stores and shares.
- Classify data according to sensitivity – financial, health, children’s, etc.
- Identify areas of high risk that require priority attention.
- Update records on data flows, legal bases for processing, storage locations, etc.
Review and Enhance Consent Procedures
- Audit consent mechanisms – are they granular, clearly communicated, easy to withdraw?
- Strengthen consent for children’s data, including parental consent.
- Provide new consent channels – don’t just rely on policies or terms & conditions.
- Allow users to limit data sharing and processing.
- Regularly refresh consent as needs evolve.
Minimize Data Collection and Retention
- Delete non-essential data that is no longer needed.
- Anonymize data where possible to remove personally identifiable information.
- Shorten data retention periods based on purpose.
- Provide users data access so they can delete their own data.
Strengthen Data Security Controls
- Implement multi-factor authentication across systems.
- Encrypt data in transit and at rest.
- Adopt Zero Trust security models with least privilege access.
- Conduct regular penetration tests to find weaknesses.
- Have an incident response plan ready in case of a breach.
Review Third-Party Risks
- Vet partners and vendors’ data handling practices.
- Update contracts to mandate GDPR-level data protections.
- Limit data access only to what is strictly necessary.
- Maintain audit trails of third-party data transfers.
Appoint a Data Protection Officer
- Designate a DPO to monitor regulatory compliance.
- Ensure the DPO has independence, authority and resources.
- Establish reporting processes from DPO to leadership.
Training and Communication
- Provide data privacy training to all employees.
- Update policies and procedures to reflect new regulations.
- Regularly communicate requirements to staff.
- Share compliance status with customers and partners.
Conclusion
The UK data landscape is undergoing major upheaval with the upcoming Data Protection Act and Digital Markets Bill. To avoid steep fines or reputational damage, businesses must start preparing now by auditing their data practices, enhancing consent and security controls, reviewing third parties, training employees and appointing leadership oversight. While compliance will require some investment, taking these steps will help UK companies build trust and remain successful in the new regulatory environment.
