May 23, 2023

GDPR Deadline: Have You Taken This Critical Step?

As the May 25th deadline approaches, company leaders are incrementally preparing their teams for the new legal landscape outlined by the General Data Protection Regulation (GDPR). Most companies have made internal adjustments that are complete or nearly complete by this point, and if you’re a CEO or CIO in this category, you’re well on your way to upgrading your data protection infrastructure and hiring any new personnel you may need (for example, a Data Protection Officer) who can keep you compliant as new challenges arise in the future.

But there’s one step that some organizations are putting off until the last minute. And since the last minute has arrived, it’s time to complete this critical task: Public-facing company documents will need to be revised and republished to reflect new procedures, standards and data management protocols. Here’s a brief checklist that can guide the process, though it’s by no means universal or comprehensive. (Each individual organization will have a unique set of documents that will need a second look.)

Terms of Service

20-page fine-print terms of service agreements with outdated language regarding how the company collects, uses, stores, and shares private user information will need a thorough overhaul. This is important for all clients—those who access the site for free and those who pay for subscriptions or downloads. The more transparent and accessible the information, the better. Keep the terms readable, as short as possible, and reflective of the company’s new standards and internal data controls.

Terms of Use

Clearly outline exactly how users and site visitors will subject their data to exposure. Be sure to include the company’s new rules for alerting users in the event of a breach or hack. If users will hold responsibility for any aspect of their data transfer or ownership, these responsibilities will need to be made clear.

Individual Service Contracts

Update the language of all documents that clients and customers will sign before accepting services, products, payment information, or cancellations. Include information explaining (in accessible language) how long private data will be kept and how and when it will be disposed of.

Website Landing Pages/ About Us

Business models will generally require a higher level of transparency in a post GDPR-era. If your business model depends on the use of customer information to provide free services, you’ll be wise to mention this upfront.

An Announcement of Compliance

A general announcement that describes the company’s state of readiness for the GDPR, recent internal changes, and general approach to data privacy can reassure both present and future customers.

Document Revision Guidance

Support for the document revision process can be major or minor, partial or comprehensive, and an established team of consultants can help with both. Contact us for cursory regulatory advice and guidance, or for support with every detail of your rewrites.


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Frequently Asked
Questions

What type of compliance standard can you help with?

We help our clients based on their needs. The majority of our contracts involve SOC-2, HIPAA, and most recently GDPR. Feel free to ask us if we can help with your particular case. If we aren't able to, we can most likely recommend you to someone who can.

How long does a SOC 2 engagement usually take?

We move as fast as our clients are able to make progress. Our fastest client to date got their SOC-2 Type I four months after signing our engagement letter. That record is up for grab if you are up for it.

In our experience however, it takes 6-9 months to achieve a SOC-2 Type I,  and 3-6 additional months to obtain a SOC-2 Type II report.

Which standard do you follow for your security policies?

All of our security policies follow the ISO-27001 standard. The Confidentiality, Integrity, and Availability standards cover the range of standards we like to work with for SOC 2.

Why do we have to become SOC 2 compliant if we are relying on AWS which is already compliant?

SOC 2 stands for Service Organization Control, meaning your clients are interested in understanding your controls, not your hosting provider’s control. As part of your vendor assessment we recommend reviewing AWS’ SOC 2 report, but relying on their report is not enough to become SOC 2 compliant.

Who is behind SOC 2?

The American Institute of CPAs. The AICPA is an established and respected organization that provides two forms of audits to companies that demonstrate evidence of a secure data-protection infrastructure. A Type I is a point in time audit that addresses the company’s description of its system, the suitability of the system’s design, and the effectiveness of its internal data controls. A Type II report happens over a period of time and emphasizes design and also focuses on the validity of the company’s controls.

Are SOC 2 reports a legal obligation?

No, but most enterprise level organizations that engage with sensitive data (again, almost all of them) have an obligation to their stakeholders to prove due diligence regarding data security, which means they’ll want to vet their service providers using this tool. SOC 2 can help these prospective service providers set themselves apart from the competition. Just as important, a SOC 2 report represents a meaningful and respected signifier of trust.

What can happen to a company without a SOC 2 report?

A lack of a SOC 2 report won’t result in legal problems, but it can and will limit outside assessments of the company’s commitment to data security. When large-scale clients look for providers, or large-scale backers look for a likely return on their investment, they don’t want concerns about security to stand in the way. Trust is a chain made of links that have each been put the test and have proven their ability to withstand pressure and scrutiny. Company leaders are wise to let SOC 2 auditors apply this pressure so their clients and backers don’t have to.

When is it too late for a SOC 2 audit?

Never. Even companies that have been in business for years but have never obtained a SOC 2 report can—and should—take steps in this direction now. Being compliant with SOC 2 can open the door to a broader base of more significant clients and larger contract opportunities. That being said, startups in the threshold of the marketplace, and new business owners who hope for an eventual public offering, should obtain a SOC 2 report during the development and financing process. By the time the company approaches Series B and C fundraising rounds, a report should be in hand.

How complicated is the auditing process?

The auditing process can be easy, or complicated depending on your level of preparation.

Preparing for the audit can take some time, attention, and the guidance of reliable data security experts. Don’t leave any part of this process to chance. Approach SOC 2 compliance one step at a time, and start by contacting a consulting firm with track record of experience in your area of the marketplace.