What is GDPR and why is it important for a business?

• A. A data privacy policy used internally by the company.
• B. The General Data Protection Regulation; it protects personal data and requires proper handling and consent.
• C. A tax rule for online sales.
• D. A labeling standard for consumer products.

Answer: (B)

GDPR is the General Data Protection Regulation, a law in the European Union that governs how personal data about individuals is collected, stored, used and shared. It matters for a business because it sets strict requirements on data handling: you must have a lawful basis for processing, use data only for stated purposes, collect only what you need, keep data accurate and secure, and respect individuals' rights such as access, correction, erasure, and data portability. It also requires transparent privacy notices and accountability measures, including documenting processing activities and having a plan to respond to data breaches (often within 72 hours). The regulation applies to any organization that processes the personal data of people in the EU, even if the organization is outside the EU, so non-compliance can lead to heavy fines and reputational damage. In short, GDPR is about protecting personal data and ensuring businesses handle it responsibly, which is why this description fits best. It’s not just an internal privacy policy, a tax rule, or a product labeling standard.