In an increasingly regulated digital environment, companies are exposed to numerous risks of non-compliance. The financial and reputational risks weighing on their business threaten their competitiveness, and sometimes even their very survival. RGPD, LCEN, Loi Informatique et Libertés, Code de la Consommation... regulations can be destabilizing, especially when the company doesn't have the in-house skills to master the intricacies of each law.
In this article, Data Enso explores the contribution of Data Quality Management (DQM) tools to data compliance efforts in sales and marketing functions.
RGPD non-compliance: financial and reputational risks
The risks associated with non-compliance with the General Data Protection Regulation (GDPR) can threaten the competitiveness and even the survival of businesses, with both significant financial and reputational repercussions.
When it comes to financial penalties, companies risk fines of up to 4% of annual worldwide sales or 20 million euros, whichever is higher, for breaches of the RGPD's core principles, such as the unlawful processing of personal data. Even "less serious" breaches can result in fines of up to 2% of annual worldwide sales or €10 million... and these penalties are not merely dissuasive. In 2022, penalties imposed on companies for non-compliance with the RGPD amounted to €832 million worldwide.
In addition to financial penalties, non-compliance with the RGPD can lead to serious reputational consequences. Indeed, data protection breaches lead to the erosion of customer trust and loyalty, all the more so when you consider that incidents must be reported to the supervisory authorities and, in some cases, to the individuals concerned, which can result in negative media coverage and bad buzz.
The role of Data Quality solutions in RGPD compliance
Companies must therefore equip themselves to ensure compliance with the RGPD and protect themselves from the financial and reputational risks that threaten their competitiveness.
#1 The accuracy principle of the RGPD
The RGPD advocates the principle of accuracy. According to Article 5, personal data must be " accurate and, where necessary, kept up to date ". This principle has a double implication. Firstly, it means that when data is initially collected, companies must ensure that it is correct. Secondly, it imposes an obligation to maintain data accuracy over time. What may seem simple in theory often proves a major challenge in practice.
Companies process vast quantities of data, with a high risk of obsolescence. Prospects and customers move, change jobs, modify their contact preferences and so on. These events therefore come to pollute databases, with business implications but also a risk of RGPD non-compliance. This is where Data Quality Management (DQM) solutions come in. These IT tools help companies maintain the accuracy, consistency and relevance of their data at collection (at contact form level), and then over time through several key functionalities:
- Data cleansing: DQM solutions can identify and correct data errors such as typos, spelling mistakes or incorrect formats. These tools generally use advanced algorithms to spot anomalies that may indicate an error;
- Keeping data up to date: DQM solutions can also help keep data up to date. For example, they can be configured to flag data that has not been updated for some time, or to integrate data from reliable external sources to keep information up-to-date;
- Data deduplication: DQM solutions can spot and eliminate duplicates in databases. This is an essential feature for complying with the RGPD accuracy principle, as duplicates can lead to data processing errors and inaccuracies.
#2 The data minimization principle of the RGPD
The GDPR also requires data to be " limited to what is necessary " for the purposes for which it is processed. This is known as "data minimization". By eliminating duplicates and cleansing unnecessary or obsolete data, DQM tools that embed deduplication functionalities contribute to this objective and thus to a company's compliance with the RGPD.
#3 The RGPD's right to data portability
Finally, the RGPD gives individuals the right to portability of their data. In short, Internet users are entitled to ask a company to provide them with the data it holds about them in a structured, commonly used and machine-readable format. It also enables the individual to demand that this data be transferred directly to another company.
The aim of this right is to give individuals more control over their personal data. This right to portability is commonly exercised by consumers in the financial services and telecommunications sectors, where people change providers while keeping the same data. With the right Data Quality Management tools, companies can guarantee this right to their customers and prospects and remain RGPD compliant.
DQM tools and other applicable legislation
The RGPD is undoubtedly the number one compliance issue for businesses in view of the risks involved, but other laws also require companies to pay particular attention to the Data brick of their business. A few examples:
- Loi pour la Confiance dans l'Économie Numérique (LCEN): imposes obligations on the collection and storage of connection data, the sending of commercial communications by electronic means, and the liability of hosting and Internet service providers. Penalties for non-compliance can reach 75,000 euros for individuals and 375,000 euros for legal entities. By ensuring the accuracy and relevance of data used for commercial communications, DQM solutions help to avoid these penalties.
- Data Protection Act (Loi Informatique et Libertés ): this law imposes additional obligations on companies with regard to data processing, including respect for individual rights, data security and, in certain cases, the appointment of a data protection officer. Failure to comply with this law can result in significant financial penalties of up to €3 million(see the Voodoo case from January 2023). Here again, DQM tools facilitate compliance by ensuring that data is accurate, up-to-date and rationally organized.
- The French Consumer Code lays down rules governing the use of personal data. It defines the rights of consumers with regard to telephone canvassing and direct prospecting. DQM's tools ensure compliance with these rules by guaranteeing the accuracy of contact data used in these activities.
Data Enso helps you lock in compliance
Regulations governing data confidentiality and the proper use of a company's data capital can be unsettling, both in terms of their complexity and the risks involved.
To help you lock in your compliance, Data Enso offers a wide range of Data Quality Management solutions that make your databases reliable, and turn them into performance drivers, in compliance with current legislation. Our aim: to enable you to focus on your core business and stimulate your company's growth with complete peace of mind. Find out more about our Data Quality Management solutions and request your test access now.
