If you’re a US-based business owner, you might assume that the General Data Protection Regulation, better known as GDPR (Europe’s strict data privacy law) doesn’t apply to you. That’s not always the case! Even if your company operates primarily in the United States, you could still be subject to GDPR compliance requirements.
The GDPR applies to any organization that processes the personal data of individuals in the European Union (EU). This is the rule regardless of where the business is located, which means your US-based company must comply if it offers goods or services to EU residents, like shipping to Europe or targeted ads for EU audiences. It also applies if you monitor the behavior of individuals in the EU, like tracking website visitors through analytics or cookies. If you process personal data of EU citizens (collecting emails, payment details, or user profiles), GDPR compliance is mandatory.
Let’s say that you’re a US-based online store who sells to customers in Germany, a SaaS company with users in France, or even a blog using Google Analytics that attracts EU visitors. All of these scenarios would likely fall under GDPR jurisdiction.
If GDPR applies to your business, compliance involves several important steps. First, you must obtain explicit consent from users, meaning they must actively opt-in (no pre-checked boxes) and clearly understand how their data will be used.
You’ll also need a GDPR-compliant privacy policy that discloses what data you collect, why you collect it, and how long you retain it. This policy should explain user rights, including their ability to access, correct, or delete their data.
Data protection is another major requirement. Implementing measures like encryption, secure servers, and access controls is extremely important! If your business handles large-scale data processing, you may need to appoint a Data Protection Officer (DPO) to oversee compliance. In addition to this, you must honor data subject rights allowing users to request, correct, or delete their data through a Data Subject Access Request (DSAR). These requests must be addressed within 30 days. Finally, in the event of a data breach affecting EU users, you’re required to report it to authorities within 72 hours.
So, what happens if you ignore GDPR? Non-compliance can lead to steep consequences including fines of up to €20 million or 4% of global revenue (whichever is higher). Beyond financial penalties, your business could face legal action from EU regulators and affected users, as well as reputational damage that creates distrust among customers. While enforcement against US businesses may not be immediate, the risks make compliance a smart long-term strategy.
Not all US-based businesses necessarily need to worry about GDPR. If your business has no EU customers or website visitors, doesn’t market to or track EU users, and doesn’t process EU residents’ data, GDPR may not apply. But if there’s any chance of interacting with EU data (even inadvertently), taking proactive steps toward compliance is the safer choice.
Even though GDPR is an EU regulation, its influence stretches everywhere. And taking GDPR seriously gives you a chance to build real trust with customers who care about their privacy. So, where do you start? First, take a close look at how you collect data. Are you handling information from EU customers? If your answer is “yes”, update your privacy policy to meet GDPR standards and make sure you’re getting clear consent (think cookie banners and easy opt-ins). If this feels overwhelming, don’t worry! A data privacy expert can help guide you through it. At the end of the day, GDPR compliance is more than just a legal checkbox; it’s a way to show customers you value their security, and that’s something everyone can appreciate.