Web Hosting and Data Privacy: Ensuring Compliance with GDPR and Other Regulations

In the past decade, data privacy regulations have emerged as a legal aspect of business operations that has to be followed. Only GDPR, for example, has cost companies millions of dollars. 

The strictness of data regulations will unlikely drop. As a company that provides web hosting services, compliance with relevant regulations is essential. Hosting providers have to protect the data of their customers, as well as the data that they collect from others. 

Although challenging and often costly, embracing compliance can lead to long-term success and business continuity. This article will cover some of the most important data regulations you need to look out for, as well as methods to ensure that your business is compliant. 

Importance of Data Privacy

All regulations and fines aside, protecting your customer’s privacy should be a moral responsibility. Without explicit consent, we should value the customers’ right to keep their information. 

You’ll improve your reputation by being transparent and ensuring that the customer’s data is protected and secured. The average web hosting user is likely more tech-savvy than regular internet users. This increases the likelihood that they’ll research whether a web hosting company is careful with advanced aspects such as data privacy.

In short, protecting customer’s data can give you a competitive edge. Data regulations put an even bigger emphasis on data handling. If you gather data without the user’s consent or if you suffer a data leak, immense fines can be imposed on your business.

Numerous factors impact the height of the fine, but it’s certainly an unnecessary cost. However, in some situations, fines imposed by regulatory bodies can lead to bankruptcy. Even if the fines aren’t significant, your reputation can suffer.

If the customer considers your business unsafe, you can expect unsubscriptions and a lower amount of sales. Whatever the reason, not paying attention to data privacy has severe negative impact on your business. 

Data Regulations to Look Out For

One of the most important data regulations there is the General Data Protection Regulation. It came into effect in 2018, and transformed the landscape of data regulations. GDPR requires companies to include lawful, fair, and transparent processing and give clear and explicit consent.

GDPR is extraterritorial, meaning that it can apply to organizations even outside of the EU. As long as you’re doing business with EU citizens, you’ll be eligible for fines, and you must adhere to it. GDPR gives data subjects, which are users or customers, the right to delete their data. 

Soon after the GDPR was introduced, California, the world’s fifth-largest economy, introduced the California Consumer Privacy Act. This important act gave customers control over their personal data that’s collected online. The CCPA has more lenient criteria for eligibility to pursue legal action.

Although much older than the previous two, the Canadian Personal Information Protection and Electronic Documents Act, has experienced significant changes in recent years. PIPEDA has been around since the year 2000 and it has been updated with relevant new rules and guidelines in 2018. 

The modernized document adds rules that are related to consent requirements, scopes of application, and data breach notifications. 

Similarly to PIPEDA, Japan’s Act on Protection of Personal Information was enacted in 2003. Japan has been a year ahead of GDPR, as it implemented significant changes in 2017 to the document. 

Japan has received an adequacy decision from the European Union, which ensures a smoother data flow and business cooperation between the two. However, it’s worth noting that GDPR is stricter than APPI.

These regulations are some of the most relevant ones in the current data landscape. If your web hosting operates in specific regions not covered here, it’s highly advisable to research the data regulations that are applicable to you. 

Methods to ensure compliance for your web hosting

How you can ensure compliance can differ from one business to another. However, it’s up to you to choose practices that help you operate in accordance with the relevant regulations. 

These examples are only some of the ways you can ensure a good reputation as a hosting provider. 

Cookie Consent Platforms

Modern problems require modern solutions, as one meme frequently states. To streamline the complicated process of collecting and storing data, you can implement specialized platforms called consent management platforms. 

These platforms ensure cookie compliance by providing you with key features involved in gathering and storing cookies. For example, you can use consent management platforms to customize your cookie banners, minimizing the need for specialized UI/UX designers. 

But, these platforms also provide you with an intuitive centralized platform where you can manage the type of data you’re collecting. With new privacy laws being introduced on a weekly basis, having an automated process for ensuring compliance is of immense help.  

Collaborating with Compliant Partners

While your web hosting business can implement the security measures of the highest sophistication, someone else can be a weak point. Companies rarely operate in isolation, and web hostings need to have partnerships with marketing and SEO agencies to grow. 

However, those partners must be compliant as well. A problem can occur if your partner turns out to exploit user data. This can lead to reputation loss, but it’s unlikely that you’d be fined. But the real problem can occur if their irresponsible practices lead to data leaks in your business.

So, next time when you’re looking for marketing or premium link building services, ensure that the companies aren’t only good in their industry but that they’re also compliant and responsible.

In the long run, paying a premium for a reliable company is much more profitable than paying for a cheaper option which eventually leads to compliance problems. 

Cybersecurity Measures

Now that we’ve covered the surface-level problems that your actions can prevent let’s move on to external threats. Cybersecurity is a field that’s essential for protecting customer data. Without properly handling your security, hackers can exploit vulnerabilities.

Data leaks and breaches have been a turning point for the worse for dozens of companies. One of the most significant ones is tech giant Yahoo!, which crumbled because of a data leak. 

By implementing regular security audits, you can minimize the chances of suffering from cyber threats. For example, computer networks in a location where your servers are must be properly configured and protected. 

Firewalls, both physical and digital, can be of immense help as they can isolate networks from certain risks. Furthermore, there’s a ton of different software, such as intrusion detection systems and anti-malware, that can protect you from hacker attacks. 

Backups

Data breaches are some of the worst situations your web hosting can be in. Having your customer’s data leaked is a serious breach of trust, and it can lead to fines under many regulations, including GDPR.

However, in the worst-case scenario, backups can help you retrieve a portion of the lost data and allow your operations to continue. They can lead to reducing fines by demonstrating that you’ve taken the proper measures. 

Privacy Policies

Your customers will be met with a breakdown of what data you’ll collect and why once they open your website. They’ll be notified about this through a cookie banner. However, you should have a page that explains your privacy policy extensively. 

The document should outline your data collection practices and their purpose. Depending on your location and operations, you should also explain to which regulations you adhere. A privacy policy is essential, but it must be regularly updated to keep up with the latest changes. 

In a situation where your web hosting is sharing data with third parties, you should also explain the reasons behind that. Furthermore, you should mention what companies you’re sharing data with. 

Data Privacy is Crucial for Your Web Hosting

If your business falls under the categories that can be fined for data misuse, there aren’t many ways to avoid this. Do what’s in your power to ensure compliance and prevent any negative outcomes that come with failing to do so. 

Furthermore, even if your business is too small, or if none of the data regulations apply to you, it’s advisable to implement compliant practices. This way, you’re ensuring that your users are protected, you’ll improve your reputation, and prevent any future developments in the compliance field. 

If you’re already running successful operations, there’s no need to risk everything by failing to comply with GDPR or CCPA. The costs associated with implementing measures to ensure compliance are often much smaller than fines and profit losses associated with breaching regulations.