In a panel discussion this week, I was arguing with the great Tom Moran wether GDPR in Europe was being properly pursued by regulators. My thesis was, that officials will offer an unofficial 5 year transition period (that would be until 2023) until when fines will really be enforced. Now ft reports, fines have risen 40% in the last year, which underpins my thesis.
And this is a good thing. Why?
Not going too much into detail, but I’m a fan of GDPR (and no, not of the stupid cookie-banner-hell). In short, GDPR consists of a whole stack of
- Technical- and
- Accountability regulations.
Especially (3) is important, as it shifts accountability from consumers to companies. Done right, GDPR can bring huge competitive advantage to companies and organizations, as trust an transparency is on the rise in consumer demand. The higher the trust, the
- longer the customer stays with your company,
- the customer adds data / assets to our company
leading to a higher customer live time value. And that is sustainable.
So why is enforcing GDPR law a good thing and the rise in fines a good signal? When there’s a new law in town, enforcing can be a hard thing. Law-suits will become daily business. That the fines are rising now says, that officials become more sure, to be on the winning side. And therefore we, the customer, too.