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ALF - Legal services in Africa > Articles > Personal data > RGPD – Data breaches, what are my start-up’s obligations?

RGPD – Data breaches, what are my start-up’s obligations?

  • 23 January 2024
  • Posted by: Kelly HAZAN
  • Category: Personal data
No Comments

STARTUPS, WHAT ARE YOUR OBLIGATIONS IN THE EVENT OF A PERSONAL DATA BREACH?

Implementing security measures is an obligation imposed by the RGPD. What is a personal data breach? How to react? What are my obligations as a data controller? What are my obligations when my startup acts as a subcontractor?

The aim of this article is to give you the reflexes you need to adopt in the event of a personal data breach.

1. What is a personal data breach?

A personal data breach corresponds to any action, whether intentional or not, that undermines the confidentiality, integrity, or availability of personal data (Article 33 of the RGPD).

Examples: loss of a document containing personal data, malicious entry into a database.

A security flaw is a broader concept that corresponds to a vulnerability within an information system (IS) that, if exploited, could jeopardize its integrity.

Examples: SQL injection, phishing, ransomware, …

Security breaches do not always affect personal data, and therefore do not always result in a data breach. It is therefore necessary to analyze the data affected by the security flaw.

2. What are your obligations as Data Controller?

The startup acting as data controller must comply with the following obligations:

a. Obligation to notify the supervisory authority

The startup is obliged to notify the competent supervisory authority of any breaches of the data it processes, where there is a risk to the persons concerned.

When to notify? Obligation to notify the supervisory authority within 72 hours of becoming aware of the personal data breach.

Warning: Startups processing personal data of individuals located in France: Link to the CNIL form: https: //notifications.cnil.fr/notifications/index. This CNIL notification form requires you to specify the reasons for the delay. The CNIL requires a new 72-hour period between the initial notification and the additional notification.

b. Obligation to inform data subjects

Where there is a high risk to the rights and freedoms of data subjects, the startup is obliged to communicate the occurrence of a data breach to those concerned.

How soon? This communication to the people concerned must be made as soon as possible.

Communication content:

  • Description, in clear and simple terms, of the nature of the personal data breach;
  • Name and contact details of data protection officer or other point of contact from whom further information can be obtained;
  • Description of the likely consequences of the personal data breach ;
  • Description of the measures taken or proposed to be taken by the controller to remedy the personal data breach, including, where appropriate, measures to mitigate any negative consequences.

In some cases, it may be necessary to distinguish between data subjects who need to be informed and data subjects who, because of one of the exceptions below, do not need to be informed if :

  • Appropriate technical and organizational protection measures have been taken (e.g. encryption or pseudonymization);
  • Subsequent measures ensure that the high risk is no longer likely to recur;
  • Communication to the people concerned would require disproportionate effort (in which case public communication would be appropriate).

c. Obligation to keep a register of personal data breaches

The RGPD requires the startup to document any data breach to enable the supervisory authority to carry out an a posteriori check of all personal data breaches. The startup must therefore keep a register of personal data breaches.

When? This register must be kept on an ongoing basis, and the startup must record all data breaches that have occurred.

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3. What are your obligations as a subcontractor?

When the startup acts as a subcontractor within the meaning of the RGPD, its obligations related to data breaches are not the same. In practice, a startup that hosts personal data on behalf of a data controller, or that provides a SaaS platform, processes personal data solely on behalf of data controller companies. The starup, which is therefore acting as a Subcontractor within the meaning of the RGPD (regardless of its location), will have to comply with the obligations incumbent on it in the event of a personal data breach by its client companies.

The startup acting as a Processor within the meaning of the RGPD has an obligation to inform the controller of the personal data concerned that a data breach has occurred.

When? inform the data controller? The Subcontractor is obliged to inform the Data Controller as soon as possible.

Warning: a deadline may be contractually imposed by the Data Controller on the Subcontractor. In fact, when the Data Controller and the Subcontractor enter into a contract that includes a clause relating to the protection of personal data (Article 28 of the RGPD), they may stipulate that the Subcontractor must inform the Data Controller within a certain period (for example: 48 hours).

4. Our advice :

When the startup acts as a Data Controller, it is recommended to :

  • implement a personal data breach management policy internally, in order to better manage data breaches and to be informed quickly if a data breach occurs.
  • complete an initial notification to the CNIL, which will be supplemented “as soon as possible” by an additional notification.

When the startup acts as a Subcontractor, it is recommended not to carry out any notification to the supervisory authority or communication to data subjects on behalf of the Data Controller. The RGPD does not impose these obligations on the startup acting as a Subcontractor.

5. WHY MUST YOU COMPLY WITH THESE RGPD OBLIGATIONS?

Data security is an extremely important issue, which has an impact on relations with the startup’s customers, partners and service providers.

The point of complying with these RGPD obligations is to avoid:

  • Financial penalties of up to 20 million euros or 4% of worldwide annual sales, whichever is higher, and made public;
  • Publicizing the penalty for a security breach or failure to notify a personal data breach, which will have negative consequences for the startup’s image and reputation.

For example: in France, the Penal Code provides for criminal penalties of up to 5 years’ imprisonment and a €1.5 million fine for corporate bodies.

More articles →

References :

  • Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of individuals with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC;

  • Guidelines, recommendations and best practices published by the European Data Protection Committee (EDPS);

  • Article 29 Working Party (G29) guidelines approved by the EDPS.


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