How data protection law (UK GDPR/GDPR) impacts your business in practice

How data protection law (UK GDPR/GDPR) impacts your business in practice

Data protection law – in particular the UK GDPR, the EU GDPR and the Data Protection Act 2018 – is now part of the day-to-day reality of organisations in the UK and across Europe. If your organisation collects, stores or uses information about individuals (customers, leads, employees, suppliers, patients, students, etc.), data protection rules apply to you in some way.

More than just an “IT law”, data protection legislation affects processes, culture, technology, contracts and strategy. Ignoring this impact opens the door to risks: fines, regulatory investigations, security incidents, loss of reputation and a breakdown of trust with customers and partners.

In this article, we’ll look, in a practical way, at:

• What data protection law is and what it changes in practice;
• How it affects different areas of the business;
• The main risks of not complying;
• The opportunities that come with getting it right;
• A starting roadmap to launch (or strengthen) your compliance journey.

1. What is data protection law and why does it matter?

The UK GDPR and the EU GDPR regulate the processing of personal data. In simple terms, they define:

• What personal data is (any information relating to an identified or identifiable individual – name, national insurance number, e-mail, IP address, location data, health data, biometrics, etc.);
• What rights individuals have (access, rectification, erasure, restriction, portability, objection and others);
• Which lawful bases allow you to use data (consent, contract, legal obligation, vital interests, public task, legitimate interests);
• What obligations organisations have when collecting, storing, sharing and deleting personal data;
• Which sanctions may apply in case of non-compliance (warnings, significant administrative fines, orders to stop processing, and more).

In practice, data protection law forces organisations to move away from the “collect everything and keep it forever” mindset and handle personal data with clear purposes, transparency and security.

2. Where does data protection law “hit” your business?

The impact of data protection rules cuts across multiple functions. Here are some key areas.

2.1 Marketing and sales

Marketing and sales teams are often at the centre of the discussion because they work directly with leads and customers.

Key impacts:

• Lead capture: forms, landing pages and campaigns must clearly explain how data will be used (purpose) and on what lawful basis (consent, contract, legitimate interests, etc.);
• Communications: e-mails, SMS and targeted messages must respect contact preferences and opt-out mechanisms;
• Profiling: using data to build profiles and segmented audiences must be transparent and proportionate, avoiding intrusive or unfair practices;
• Sharing with partners: campaigns with agencies, media platforms and commercial partners require contracts that address personal data protection.

The challenge is to balance commercial performance with respect for privacy and individual choice.

2.2 HR and people management

HR handles large volumes of personal data, often of a sensitive nature (health information, benefits, background checks, family data).

Typical impacts:

• Recruitment and selection: CV collection, tests, interviews, use of third-party platforms;
• Health and wellbeing records: highly sensitive information that requires stronger safeguards;
• Document storage: contracts, personnel files, performance reviews, disciplinary records, attendance records;
• Sharing with payroll, benefits providers and other third parties: the need for appropriate data processing clauses.

Data protection law requires these data to have a clear purpose, defined retention period and appropriate security.

2.3 IT, information security and infrastructure

While data protection is not only an IT topic, the technology function is central to implementing controls.

Main fronts:

• Data inventory: knowing where personal data live (databases, files, backups, e-mails, legacy systems, cloud);
• Technical security: encryption, access controls, strong authentication, logging, backups, network segmentation;
• Incident management: the ability to detect, respond to and, where required, notify personal data breaches to the ICO or other supervisory authorities and to affected individuals;
• Integrations and APIs: ensuring that data exchanges with third parties are secure and documented.

IT becomes a direct partner to legal, the Data Protection Officer (DPO) and risk management.

2.4 Legal, contracts and governance

From a legal and governance perspective, data protection rules lead to:

• Contract reviews with customers, suppliers, partners and processors to add appropriate data protection clauses;
• Role definitions (controller, joint controller, processor) in each business relationship;
• Creation of policies and notices (privacy notice, terms of use, cookie policy, internal policies);
• Regulatory risk management and interaction with supervisory authorities (such as the ICO).

Beyond “complying with the law”, data protection requires the ability to demonstrate that appropriate measures have been taken (accountability).

2.5 Customer service and support

Service and support teams are often the first point of contact when individuals exercise their rights.

In practice, this means being prepared to:

• Respond to access requests (what data the organisation holds about the person);
• Process requests for rectification and updates;
• Record and handle requests for erasure or restriction, where applicable;
• Manage objections and marketing preferences;
• Explain, in clear language, how data are used.

This requires processes, systems and specific training.

3. Risks of not complying with data protection law

Ignoring data protection obligations or treating them as “mere paperwork” creates real risks.

3.1 Regulatory sanctions

Supervisory authorities can impose:

• Warnings with deadlines for corrective actions;
• Administrative fines that can reach significant amounts, depending on the seriousness of the infringement;
• Public reprimands, which directly affect reputation and trust;
• Orders to restrict or stop processing certain personal data.

Additionally, organisations may face:

• Investigations by other sectoral regulators;
• Challenges in tenders and procurement processes;
• Difficulties in M&A transactions and investment rounds.

3.2 Litigation and complaints

A personal data breach can result in:

• Individual or class-action claims;
• Complaints to consumer protection bodies;
• Demands for compensation for material and non-material damage.

Even where the organisation is not ultimately found liable, the cost of defence, management time and reputational damage can be substantial.

3.3 Loss of trust and reputational impact

In a world where data are strategic assets, trust becomes a competitive advantage. Recurring breaches, misuse of data or lack of transparency can lead to:

• Loss of customers to more trustworthy competitors;
• Difficulty closing strategic partnerships;
• Long-term brand damage.

Conversely, organisations that take privacy seriously gain credit with customers, investors and partners.

4. Opportunities created by getting data protection right

Looking at data protection only through a “penalty” lens misses an important point: compliance also brings opportunities for improvement and differentiation.

4.1 Better data quality and governance

Compliance projects often involve:

• Mapping data (where they are, how they flow, who accesses them);
• Reviewing records and eliminating obsolete or duplicate data;
• Standardising collection and update processes.

The result is a cleaner, more reliable and more useful data estate.

4.2 Process improvement and risk reduction

By reviewing data-intensive workflows, organisations typically identify:

• Redundant or inefficient processes;
• Information security weaknesses;
• Outdated contracts with processors and partners.

Addressing these issues reduces not only privacy risk but also operational and continuity risks.

4.3 Competitive advantage and brand positioning

Organisations that clearly explain how they protect personal data and give individuals meaningful control are seen as more trustworthy.

This can lead to:

• Easier contracting with large customers and partners;
• Better scores in due-diligence and audit processes;
• A brand perceived as transparent, ethical and responsible.

5. Practical steps to start your compliance journey

Every organisation has its own context and level of maturity, but a typical starting roadmap includes the following steps.

5.1 Step 1 – Data mapping and gap analysis

• Map which types of personal data you collect (customers, leads, employees, third parties);
• Identify where these data are stored (systems, databases, spreadsheets, physical files, cloud, e-mail);
• Understand why each data item is used (purpose) and with whom it is shared.

This inventory is the foundation for any serious compliance plan.

5.2 Step 2 – Review lawful bases and touchpoints

• Assess the lawful basis for each processing activity (consent, contract, legal obligation, vital interests, public task, legitimate interests);
• Review forms, landing pages, onboarding flows and contracts to align them with data protection law;
• Update your privacy notice, terms of use and cookie information.

The goal is to ensure individuals know what happens to their data and that each use is legally justified.

5.3 Step 3 – Strengthen information security

• Revisit access controls, authentication, passwords and user profiles;
• Implement or enhance encryption for sensitive data at rest and in transit;
• Create or update backup, disaster recovery and incident-response procedures;
• Make sure systems and devices are patched and protected against known vulnerabilities.

The law does not prescribe specific technologies but requires security appropriate to the risks.

5.4 Step 4 – Define governance, roles and responsibilities

• Appoint a Data Protection Officer (DPO) or equivalent role where required or appropriate;
• Clearly define who acts as controller and who acts as processor in each relationship with third parties;
• Set up a committee or forum to discuss privacy and security matters.

Without governance, compliance efforts remain fragmented and hard to sustain.

5.5 Step 5 – Train teams and adapt processes

• Train staff on data protection principles, good practices and their responsibilities when handling personal data;
• Review customer-service processes to deal with data-subject rights (access, rectification, erasure, objection, portability);
• Create clear procedures for recording and managing security incidents.

Privacy and data protection must become part of everyday work, not just policies on paper.

5.6 Step 6 – Document and evidence your compliance

• Document decisions on lawful bases, risk assessments and measures adopted;
• Maintain records of processing activities (who, what, why, for how long);
• Keep evidence of training, communications, contract reviews and policy updates.

If questions arise, it is not enough to say you “care about data protection”; you must show what you have done.

6. Data protection and the future of your business

Data protection is not a passing trend. It is part of a global movement towards stronger privacy and data protection, aligned with frameworks such as the EU GDPR, the UK GDPR and other privacy laws worldwide.

Organisations that take this seriously move ahead because:

• They organise their data and processes more effectively;
• They reduce the risk of incidents and sanctions;
• They build trust with customers, partners and investors;
• They are better prepared to grow in heavily regulated and demanding markets.

If your organisation has not yet started its data-protection journey – or has only taken isolated steps – it is worth treating the topic as a strategic project, not just a legal or IT concern. Combining compliance, governance, information security and technology is the path to turning legal requirements into competitive advantage.

Bonus tip: specialised data-governance platforms help centralise records, consents, data-subject requests and evidence of compliance. This reduces manual effort, improves visibility over the data life cycle and makes it easier to demonstrate, in practice, that your organisation takes privacy seriously.