UK Data Protection Act 2018: Key Considerations for Organizations That Share PII of UK Citizens

In today’s interconnected world, where data flows across borders seamlessly, ensuring compliance with data protection regulations has become paramount for global organizations. The U.K. Data Protection Act 2018 (DPA 2018) is a key legislation that outlines the rules and regulations for handling personally identifiable information (PII) of U.K. citizens. This blog post aims to provide a comprehensive guide on the key considerations that global organizations must keep in mind to ensure compliance with the DPA 2018 and protect the privacy rights of U.K. citizens.

U.K. Data Protection Act 2018: A Brief Introduction

The U.K. Data Protection Act 2018 is the primary legislation governing data protection in the United Kingdom. It is designed to protect the privacy and rights of individuals whose personal data is processed by organizations. The DPA 2018 aligns with the EU’s General Data Protection Regulation (GDPR) and, like the GDPR, provides a legal framework for the collection, storage, and processing of personal data.

DPA 2018 serves as the principal legislation that governs data protection practices within the United Kingdom. The Act was developed with the objective of providing a comprehensive legal framework that ensures any and every organization that handles a U.K. citizen’s personal data does so in a responsible and secure manner. DPA 2018 establishes clear guidelines and requirements for the collection, storage, and processing of U.K. citizens’ personal data, aiming to strike a balance between enabling the legitimate use of data and protecting citizens’ fundamental rights to privacy and data protection.

Compliance with the DPA 2018 is crucial for organizations to maintain trust and transparency with their U.K. customers and stakeholders while upholding their legal obligations regarding data protection.

Failure to comply with the DPA 2018 can have serious consequences for organizations. The Information Commissioner’s Office (ICO) is responsible for enforcing the DPA 2018 in the U.K., and they have the authority to impose significant fines and penalties for noncompliance. In general terms, the ICO has the power to issue fines of up to £17.5 million or 4% of a company’s annual global turnover, whichever is higher, for the most severe breaches of data protection regulations. For lesser violations, fines can still be substantial, reaching up to £8.7 million or 2% of annual global turnover. These fines can have a significant financial impact on organizations, affecting their profitability and potentially leading to financial instability.

Beyond financial penalties, noncompliance with the DPA 2018 can result in other negative consequences. Organizations may face reputational damage and loss of trust from customers and stakeholders. This can lead to a decline in customer loyalty, decreased sales, and potential business disruptions. Moreover, data subjects whose rights have been violated may seek legal recourse, resulting in costly litigation and further damage to an organization’s reputation.

Scope of the U.K. Data Protection Act 2018

The DPA 2018 encompasses various aspects of data protection within the United Kingdom. The Act applies to the processing of personal data by organizations operating within the U.K., as well as those outside the U.K. if they process personal data of individuals residing in the U.K. This means that any organization that handles personal data, regardless of its size or sector, falls within the purview of the Act if it meets the criteria outlined in the legislation.

Types of personal data covered by the Act include:

• Names and Addresses: Full names, home addresses, email addresses, and phone numbers of individuals are considered personal data.
• Identification Numbers: National insurance numbers, passport numbers, driver’s license numbers, and other government-issued identification numbers are considered personal data.
• Financial Information: Bank account details, credit card numbers, and other financial data associated with an individual are considered personal data.
• Health Information: Medical records, treatment history, and any other health-related information that can be linked to an individual are considered personal data.
• Biometric Data: Fingerprints, facial recognition data, and other biometric information that can uniquely identify an individual fall under the category of personal data.
• Social Media Information: Usernames, profiles, and any other data linked to an individual’s social media accounts are considered personal data.
• Employment Details: Employee records, including employment contracts, salary information, and performance evaluations, are considered personal data.

Further, the DPA 2018 applies to both data controllers and data processors. A data controller is an entity that determines the purposes and means of processing personal data, while a data processor is an entity that processes personal data on behalf of the data controller. Both data controllers and data processors have specific responsibilities and obligations under the Act.

Data Protection Measures for Compliance With the U.K. Data Protection Act 2018

The following table highlights important data protection measures that global organizations should implement to comply with the U.K. Data Protection Act 2018. Each measure contributes to the safeguarding of PII, maintaining data integrity, and reducing the risk of unauthorized access or breaches. We’ll later elaborate on these measures and provide guidance on their implementation and relevance to compliance with the Act.

Key Principles of the U.K. Data Protection Act 2018

The DPA 2018 is built on several key principles that organizations must adhere to when processing personal data. These principles include:

• Lawfulness, Fairness, and Transparency: Organizations must process personal data lawfully, ensuring fairness and transparency in their data processing practices.
• Purpose Limitation of Personal Data: Personal data should only be collected and processed for specified, explicit, and legitimate purposes.
• Data Minimization Principle: Organizations should only collect and process personal data that is necessary for the intended purposes.
• Accuracy of Personal Data: Organizations must ensure the accuracy of the personal data they hold and take reasonable steps to rectify any inaccuracies.
• Limit Storage of Personal Data: Personal data should not be kept for longer than necessary for the purposes it was collected.
• Integrity and Confidentiality to Protect Personal Data: Organizations must implement appropriate security measures to protect personal data from unauthorized access, loss, or damage.
• Data Privacy and Responsibility and Accountability: Organizations are expected to show that they are adhering to the data protection principles and obligations outlined in the legislation.

Best Practices to Ensure Compliance With DPA 2018 When Sharing PII

When sharing PII, organizations must navigate the legal requirements and principles outlined in the Act to avoid noncompliance and any potential legal consequences. By understanding the Act’s provisions and implementing appropriate measures, organizations can safeguard PII and build trust with individuals whose data they handle. These best practices include:

Determine Your Legal Basis to Process PII

The U.K. DPA 2018 requires organizations to have a valid legal basis for processing PII. Before sharing any data, global organizations should identify an appropriate legal basis from the list provided by the Act, such as consent, contractual necessity, legal obligation, vital interests, public task, or legitimate interests. It is crucial to assess which legal basis aligns with the purpose for which the data is being shared. Consent, for example, requires organizations to obtain explicit and informed consent from individuals before sharing their PII. This means clearly stating the purpose and scope of the data sharing and providing an option to easily withdraw consent. It is essential to document the consent received to demonstrate compliance with the Act.

Understand Individual Rights Regarding Personal Data

The U.K. Data Protection Act 2018 grants certain rights to individuals regarding their personal data. Global organizations must familiarize themselves with these rights and ensure they can uphold them when sharing PII of U.K. citizens. The right to be informed requires organizations to be transparent about how the data will be used, who it will be shared with, and the individuals’ rights regarding their data. The right of access enables individuals to request and receive a copy of their personal data held by an organization.

Organizations must have processes in place to fulfill such requests promptly. The right to rectification empowers individuals to correct inaccurate or incomplete data, while the right to erasure (or “right to be forgotten”) allows individuals to request the deletion of their data under certain circumstances. The right to restrict processing gives individuals the option to limit the processing of their data, and the right to data portability enables individuals to obtain and reuse their personal data across different services. The right to object allows individuals to object to the processing of their data in certain situations. Additionally, the Act addresses rights related to automated decision-making and profiling. Organizations must ensure they can fulfill these rights and provide a clear process for individuals to exercise them.

Implement Appropriate Security Measures to Protect PII

Protecting the security and confidentiality of personal data is crucial for compliance with the U.K. Data Protection Act 2018. Global organizations must implement appropriate security measures to safeguard PII from unauthorized access, disclosure, alteration, or destruction. For example, encryption should be used to protect sensitive data both in transit and at rest. Access controls and digital rights management (DRM) should be implemented to ensure that only authorized individuals have access to the data.

Secure data storage practices, such as utilizing secure servers and regularly patching software vulnerabilities, are essential. Regular security audits and vulnerability assessments help identify and address any potential weaknesses in the systems and applications that store and share PII. Lastly, organizations should provide comprehensive staff training on data protection best practices and the importance of handling PII securely.

Identify the PII in Your Possession

According to the U.K. Data Protection Act 2018, personally identifiable information refers to any information that can directly or indirectly identify an individual. Examples of PII under the DPA 2018 include:

1. Names: Full names or any other names that can uniquely identify an individual.
2. Addresses: Residential or business addresses, including street addresses, postal codes, and city names.
3. Email Addresses: Personal or business email addresses associated with an individual.
4. Phone Numbers: Personal or business phone numbers, including mobile, landline, or fax numbers.
5. Social Security Numbers: Unique identification numbers assigned to individuals by the government for Social Security purposes.
6. National Insurance Numbers: Unique identification numbers assigned to individuals by the government for Social Security and taxation purposes.
7. Passport Numbers: Identification numbers found on passports, which uniquely identify individuals for travel purposes.
8. Driver’s License Numbers: Numbers assigned to individuals on their driver’s licenses, which uniquely identify them for driving purposes.
9. Financial Account Numbers: Bank account numbers, credit card numbers, or other financial identifiers associated with an individual.
10. Date of Birth: The specific date of birth of an individual, which can be used to identify them uniquely.

It is important to note that this is not an exhaustive list, and other types of information that can directly or indirectly identify an individual may also be considered PII under the DPA 2018. Organizations and individuals should exercise caution and follow relevant data protection regulations to safeguard personal information and ensure compliance with the law.

Obtain Explicit Consent Before Processing PII

Consent is a fundamental aspect of the U.K. Data Protection Act 2018. When sharing PII of U.K. citizens, global organizations must obtain explicit and informed consent from individuals. Consent should be freely given, specific, and easily withdrawable. Organizations must clearly communicate the purpose and scope of the data sharing to individuals, ensuring that they understand what they are consenting to. It is important to provide individuals with a clear and easy-to-use mechanism to withdraw their consent at any time. Organizations must keep records of consent received to demonstrate compliance with the Act.

Restrict Access to PII

Restricting access to personally identifiable information (PII) is crucial for maintaining data privacy and complying with data protection regulations. Here are some key data privacy measures to implement when limiting access to PII:

1. Authorized Individuals: Grant access to PII only to individuals who require it to fulfill their job responsibilities. This ensures that only those who need the information can access it, reducing the risk of unauthorized exposure or misuse.
2. User Authentication Mechanisms: Implement robust user authentication mechanisms to verify the identity of individuals seeking access to PII. This typically involves multi-factor authentication techniques that require unique credentials such as usernames and passwords and supplemental credentials like SMS code or biometrics, to authenticate users before granting access to sensitive data.
3. Role-based Access Controls (RBAC): Utilize RBAC systems to assign specific access privileges based on job roles and responsibilities. By categorizing users into roles, access permissions can be granted or restricted according to the principle of least privilege. This means that individuals are only given access to the specific PII they need to perform their duties.
4. Strong Password Policies: Enforce strong password policies to ensure that access credentials are not easily compromised. This includes requiring passwords to be a minimum length, containing a mix of alphanumeric and special characters, and regularly prompting users to update their passwords. Implementing multi-factor authentication (MFA) can provide an additional layer of security.
5. Regular Access Privilege Reviews: Conduct periodic reviews of access privileges to ensure they align with the current needs and responsibilities of individuals within the organization. Remove or modify access permissions when employees leave the organization, job roles change, or when access is no longer necessary.
6. Access Logging and Monitoring: Implement systems to log and monitor access to PII. This enables the detection of unauthorized access attempts or suspicious activities. Regularly review access logs to identify any anomalies or potential security breaches.
7. End-to-End Encryption: Apply encryption techniques to protect PII both at rest and during transmission. Encryption ensures that even if unauthorized access occurs, the PII and other sensitive content remains unreadable and unusable.
8. Employee Training and Awareness: Provide comprehensive training to employees about the importance of data privacy and the proper handling of PII. Educate them on best practices for access control, password management, and data protection to foster a culture of security within the organization.

Conduct Data Protection Impact Assessments (DPIAs)

For high-risk data processing activities, global organizations must conduct Data Protection Impact Assessments (DPIAs) as required by the U.K. Data Protection Act 2018. DPIAs help identify and minimize potential risks to individuals’ privacy rights. Organizations should perform DPIAs when sharing sensitive PII or engaging in large-scale processing activities.

High-risk data processing activities that may require a Data Protection Impact Assessment (DPIA) under the U.K. Data Protection Act 2018 include:

1. Processing Biometric Data: When an organization collects and processes biometric data, such as fingerprints, facial recognition, or iris scans, it is considered a high-risk activity. Biometric data is sensitive and unique to individuals, and its mishandling or unauthorized access can have significant privacy implications. Therefore, conducting a DPIA in such cases would be essential to assess and mitigate the risks associated with the processing of biometric data.
2. Profiling for Significant Decision-making: Profiling refers to the automated processing of personal data to evaluate or predict certain characteristics, behaviors, or preferences of an individual. If an organization engages in profiling activities that have a significant impact on individuals, such as automated decision-making that can have legal or similarly significant effects, it would be considered a high-risk data processing activity. In this case, a DPIA would be necessary to identify and address potential risks to individuals’ privacy, fairness, and rights arising from the profiling activities.

Assessing and documenting potential risks associated with the data processing activities is essential. This includes considering the nature of the data, the purpose of the processing, the potential impact on individuals’ rights and freedoms, and the measures in place to mitigate risks. Organizations must take appropriate measures to address identified risks and ensure ongoing compliance with the Act.

Appoint a Data Protection Officer (DPO)

Under the U.K. Data Protection Act 2018, certain organizations are required to appoint a Data Protection Officer (DPO) to oversee data protection practices. Although the Act does not mandate a DPO appointment for all organizations, having a dedicated individual responsible for data protection can ensure ongoing compliance, provide expert guidance, and act as a point of contact for regulatory authorities and individuals. The DPO should have knowledge of data protection laws and practices and should be involved in all issues relating to the protection of PII. Organizations should carefully assess whether appointing a DPO is necessary based on the requirements outlined in the Act.

Deploy Secure Protocols in All Communication Channels

It is essential to implement secure protocols across all communication channels. By utilizing protocols such as HTTPS, SFTP, secure email, and secure web forms, organizations can ensure that sensitive information remains protected from interception or tampering. These protocols encrypt the data being transferred, making it extremely difficult for unauthorized individuals to intercept or manipulate the files. By implementing secure file transfer protocols, you protect sensitive data during transit, whether it is internal documents, customer records, or any other confidential information.

Ensure Cross-border Data Transfers Comply With DPA 2018

When sharing personally identifiable information (PII) across international borders, it is crucial to comply with the regulations outlined in the Data Protection Act 2018 (DPA 2018). This legislation provides guidelines and requirements for the transfer of personal data to countries outside the European Economic Area (EEA) or the United Kingdom (U.K.).

To ensure compliance, organizations should implement appropriate safeguards to protect the transferred data. Two commonly used safeguards are Standard Contractual Clauses (SCCs) and Binding Corporate Rules (BCRs).

Standard Contractual Clauses (SCCs)

SCCs are pre-approved contractual clauses issued by the European Commission. They provide a legally binding framework for the transfer of personal data between a data exporter (the organization transferring the data) and a data importer (the organization receiving the data). SCCs establish obligations and rights for both parties to ensure an adequate level of protection for the transferred data.

Implementing SCCs involves incorporating these contractual clauses into the agreements or contracts governing the data transfer. The SCCs address various aspects of data protection, such as security measures, data subject rights, and liability.

By adopting SCCs, organizations can demonstrate their commitment to protecting personal data and ensuring compliance with the DPA 2018 when sharing PII across international borders.

Binding Corporate Rules (BCRs)

BCRs are internal rules adopted by multinational organizations that allow them to transfer personal data within their group of companies. BCRs require approval from relevant data protection authorities, demonstrating that the organization has implemented comprehensive data protection policies and practices across its global operations.

BCRs provide a high level of protection by setting out common data protection principles and standards that apply to all entities within the organization. They ensure consistency and uniformity in data protection practices, even when transferring data to countries without an adequacy decision from the European Commission.

By establishing BCRs, organizations can demonstrate their commitment to protecting personal data and comply with the DPA 2018’s regulations on cross-border data transfers.

In addition to SCCs and BCRs, organizations should conduct a thorough assessment of the data protection laws and practices in the recipient country. This assessment helps determine if any additional safeguards or measures are necessary to ensure an adequate level of protection for the transferred data.

Protecting Sensitive Content With Kiteworks

The Kiteworks Private Content Network consolidates sensitive content communication channels, including email, file sharing, managed file transfer (MFT), web forms, and others, to control, secure, see, and track all PII that comes into or exits an organization. Through centralized governance and security, you can establish content risk policies that monitor and regulate access to PII, content modifications, and recipients of the information. The platform employs end-to-end encryption, a hardened virtual appliance, secure deployment options, and a defense-in-depth security approach to simplify the secure exchange of private information.

Access Controls: Kiteworks allows organizations to define and enforce granular access controls for shared files and folders. This ensures that only authorized individuals have access to the PII, reducing the risk of accidental or intentional data exposure.

User Authentication: The platform supports various authentication mechanisms, including multi-factor authentication (MFA) and single sign-on (SSO). These features help verify the identity of users accessing the system, adding an extra layer of security to prevent unauthorized access.

Data Sovereignty: Kiteworks offers the flexibility to choose data centers located within the U.K. or the European Union, ensuring compliance with data sovereignty requirements. This ensures that PII of U.K. citizens is stored and processed in accordance with relevant regulations.

Schedule a custom-tailored demo of the Kiteworks Private Content Network to see how it keeps PII private and your organization compliant with the Data Protection Act 2018.

Additional Resources

• Blog Post Sending PII Over Email: Security & Compliance Considerations
• Article Data Protection Act 2018
• Article Private PII and PHI
• Case Study Partner Use Cases: Kiteworks Private Content Network Innovations
• Webinar Why Security Best Practices Aren’t Enough in the Era of Data Privacy