GDPR
EU regulation for personal data protection and privacy
GLBA
US law for financial privacy notices and safeguards
Quick Verdict
GDPR mandates comprehensive personal data protection globally for EU residents, while GLBA requires financial privacy notices and security programs for US institutions handling NPI. Companies adopt GDPR for compliance and trust, GLBA to avoid FTC penalties and safeguard customers.
GDPR
General Data Protection Regulation (GDPR)
Key Features
- Extraterritorial scope targets non-EU entities serving EU residents
- Accountability principle demands demonstrable compliance proof
- Fines up to 4% global annual turnover for violations
- Data subject rights include erasure and portability
- 72-hour mandatory breach notification to authorities
GLBA
Gramm-Leach-Bliley Act
Key Features
- Requires privacy notices and opt-out rights for NPI
- Mandates written information security program
- Designates Qualified Individual with board reporting
- Enforces service provider oversight and contracts
- Imposes 30-day breach notification for 500+ consumers
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
GDPR Details
What It Is
General Data Protection Regulation (GDPR) (Regulation (EU) 2016/679) is a binding EU regulation directly applicable across member states. It protects natural persons' rights regarding personal data processing and ensures free data movement in the digital single market. Employs a risk-based, accountability-driven approach with extraterritorial scope.
Key Components
- Seven core principles: lawfulness, purpose limitation, minimization, accuracy, storage limitation, integrity/confidentiality, accountability.
- Enhanced data subject rights: access, rectification, erasure, portability, objection.
- Obligations like Data Protection Officers (DPOs), Data Protection Impact Assessments (DPIAs), 72-hour breach notifications.
- Enforcement via supervisory authorities, one-stop-shop for cross-border cases, fines up to 4% global turnover.
Why Organizations Use It
Mandatory for entities processing EU data; mitigates legal risks, fines. Builds trust, enables global compliance, inspires worldwide standards like LGPD. Enhances reputation, supports innovation via privacy-by-design.
Implementation Overview
Involves gap analysis, policy updates, training, DPIAs, DPO appointment. Applies to all sizes processing EU data, globally. No certification but ongoing audits by DPAs; two-year transition highlighted complexity for SMEs.
GLBA Details
What It Is
The Gramm-Leach-Bliley Act (GLBA) is a US federal law enacted in 1999 as the Financial Modernization Act. It mandates privacy protections and data safeguards for financial institutions handling nonpublic personal information (NPI). GLBA uses a risk-based approach via the Privacy Rule and Safeguards Rule.
Key Components
- **Privacy Rule (16 C.F.R. Part 313)Initial/annual notices, opt-out for nonaffiliated sharing.
- **Safeguards Rule (16 C.F.R. Part 314)Written security program with administrative, technical, physical safeguards; Qualified Individual; board reporting.
- **Pretexting ProvisionsBans false pretenses for info access. Compliance enforced by FTC; no certification, but audits/enforcement.
Why Organizations Use It
- Mandatory for broad financial entities to avoid $100,000+ penalties.
- Mitigates breach risks, builds customer trust, ensures resilience.
- Enables competitive differentiation via proven data protection.
Implementation Overview
Phased: scoping, risk assessment, policies, controls, testing, monitoring. Targets banks/non-banks (tax firms, auto dealers); US-focused; regulatory exams required.
Key Differences
| Aspect | GDPR | GLBA |
|---|---|---|
| Scope | Personal data protection worldwide | Financial customer information security |
| Industry | All sectors, EU residents globally | Financial institutions, US-focused |
| Nature | Mandatory EU regulation | US federal financial privacy law |
| Testing | DPIAs for high-risk processing | Penetration tests, vulnerability assessments |
| Penalties | Up to 4% global turnover | Up to $100k per violation |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about GDPR and GLBA
GDPR FAQ
GLBA FAQ
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