Overview

This article requires controllers to integrate data protection principles into the design and operation of processing systems. Organizations must ensure that only necessary personal data is collected and processed, and that technical and organizational measures protect the rights of data subjects by default.


Key Principles

  • Data Minimization: Collect and process only the personal data necessary for the intended purpose.

  • Privacy by Design: Embed data protection measures into system design, processes, and operations.

  • Privacy by Default: Configure systems to automatically protect personal data without requiring user intervention.

  • Safeguards: Use techniques such as pseudonymisation, access controls, and encryption to protect data subjects’ rights.

Organizational Applicability

This article applies to all organizations acting as controllers within the EU:

  • Entities designing or implementing systems and processes that process personal data.

  • Public and private sector organizations responsible for ensuring privacy is embedded in services and products.

  • Teams managing IT architecture, system development, compliance, and data governance.

Implementation Requirements

  • Implement technical and organizational measures that enforce data protection throughout the processing lifecycle.

  • Minimize the collection, storage, and access to personal data.

  • Apply pseudonymisation and other safeguards where feasible.

  • Document measures and processes to demonstrate compliance with data protection by design and by default.

Implementation Guidance

  • Conduct privacy impact assessments (PIAs) for new systems or processing activities.

  • Design systems with default privacy settings that limit unnecessary data exposure.

  • Train staff on privacy-aware system design and secure processing practices.

  • Regularly review and update technical and organizational measures to maintain compliance.

Periodic Review

  • Frequency: Annually or whenever new systems, products, or processing activities are introduced.

  • Responsible Role: Data Protection Officer (DPO) or Compliance Team.

  • Outcome: Confirm that privacy is embedded by design and default, and safeguards are effective in protecting personal data.

Non-Compliance Risks

  • Fines: Up to €20 million or 4% of global annual turnover.

  • Legal Exposure: Enforcement actions for failure to implement privacy by design and default.

  • Reputational Damage: Loss of trust from data subjects and regulatory authorities.

  • Operational Risk: Systems may process unnecessary or excessive personal data, increasing the risk of breaches or non-compliance.