Data Compliance
Data compliance is the practice of handling data in line with laws, regulations, industry standards, and internal policies covering how you collect, store, use, share, secure, and delete data. In short: follow the rules that apply to your data and prove you do so.
Key privacy laws and frameworks that commonly shape data compliance include GDPR (EU/EEA), CCPA/CPRA (California), HIPAA (US health), PCI DSS (payment cards), and security/privacy standards like ISO/IEC 27001 and ISO/IEC 27701, plus SOC 2 (AICPA).
Why It Matters
Avoid penalties & reputational harm: Laws like GDPR and CCPA/CPRA impose strict rules and enforcement on companies that mishandle personal data.
Trust & access to markets: Demonstrating compliance (e.g., SOC 2, ISO 27001/27701) helps win deals, pass security reviews, and expand globally.
Operational clarity: Clear policies (security, retention, DSAR handling) reduce risk and speed up audits.
Examples
E-commerce: Honor the right to opt-out of selling data and delete on request under CCPA/CPRA; keep a “Do Not Sell/Share” link.
Healthcare (US): Follow HIPAA Privacy & Security Rules for PHI, including safeguards and breach procedures.
Payments: Meet PCI DSS v4.x requirements to protect cardholder data.
SaaS vendor: Maintain an ISMS and pursue SOC 2 to evidence controls over security, availability, confidentiality, processing integrity, and privacy.
Cross-border transfers: Use Standard Contractual Clauses or the EU-U.S. Data Privacy Framework (adequacy decision in 2023, upheld by the EU General Court in Sept 2025) when moving EU personal data to the U.S.
Best Practices
Know your data & laws: Inventory personal data, systems, vendors, and flows; map which laws/standards apply (GDPR, CCPA/CPRA, HIPAA, PCI DSS, ISO 27001/27701, SOC 2).
Follow GDPR principles for personal data (lawfulness, fairness, transparency, purpose limitation, data minimisation, accuracy, storage limitation, integrity/confidentiality, accountability).
Document processing (RoPA): Maintain records of processing activities and be ready to show them to regulators.
Manage vendors: Use Data Processing Agreements (GDPR Art. 28) and ensure downstream processors meet your obligations.
Assess risk early: Run DPIAs for high-risk processing (e.g., new tracking/AI uses).
Handle transfers legally: Use SCCs or recognized adequacy mechanisms (e.g., EU-U.S. DPF) and review them regularly.
Prepare for breaches: Have an incident plan; under GDPR, notify the authority within 72 hours where required.
Prove security: Operate an ISMS (ISO 27001), adopt SOC 2 controls, and, for privacy management, extend with ISO 27701.
Related Terms
Privacy Program / CXM for Privacy
Standard Contractual Clauses (SCCs) / EU-U.S. Data Privacy Framework (DPF)
FAQs
Q1. Is “data compliance” only about personal data?
Mostly, privacy laws focus on personal data (GDPR: any information about an identified/identifiable person). But compliance also includes security and industry rules (e.g., PCI DSS) for sensitive non-personal data.
Q2. What are the core GDPR duties for most companies?
Follow the Article 5 principles, keep records of processing (Art. 30), use DPAs with processors (Art. 28), conduct DPIAs when needed (Art. 35), and notify breaches within 72 hours when risk to individuals exists (Art. 33).
Q3. CCPA/CPRA vs. GDPR, what’s the big difference?
Both give people rights (access, delete, opt-out/opt-in). GDPR typically requires a lawful basis (often consent) before processing; CCPA/CPRA emphasizes transparency and opt-out of selling/sharing.
Q4. How do we legally transfer EU personal data to the U.S.?
Use SCCs or rely on the EU-U.S. Data Privacy Framework adequacy decision (July 2023), which the EU General Court upheld on Sept 3, 2025; still monitor developments and vendor self-certification status.
Q5. Do we need certifications to be “compliant”?Certs like SOC 2, ISO 27001, ISO 27701 aren’t laws, but they evidence strong controls that support legal compliance and customer trust. Many buyers expect them.