The importance of proper processing of personal data in the company and the role of the data controller

In today’s digital age, businesses across all industries manage large amounts of personal data from customers, employees and partners. This data is vital for operations, marketing, customer service and decision-making. However, with this privilege comes the heavy responsibility of managing personal data in a secure, lawful and transparent manner.

Improper processing of personal data not only exposes businesses to legal risks, but can also damage their reputation, undermine consumer trust and lead to costly financial consequences. The role of the data controller in ensuring that personal data is processed correctly cannot be overstated. This article explores the critical importance of proper data processing and the responsibility of businesses under data protection laws, particularly the Data Protection Act, 2012 (Act 843) in Ghana.

WHAT IS PERSONAL DATA PROCESSING?

Processing of personal data means any operation or set of operations performed on personal data, whether or not by automated means. This may include collecting, storing, modifying, retrieving, disseminating or erasing personal information. Given the sensitive nature of personal data, laws and regulations such as the Data Protection Act, 2012 (Act 843) in Ghana establish strict guidelines on how personal data should be processed.

Under these regulations, the processing of personal data must be transparent, lawful and carried out for specific and legitimate purposes. Companies are required to obtain the consent of natural persons (data subjects) before processing their data, unless the processing is justified by legal or contractual obligations, the public interest or the legitimate interests of the controller or the data subject. a third.

WHY PROPER DATA PROCESSING IS CRUCIAL

1. Legal compliance: Data protection laws are designed to ensure the privacy and security of personal data. Failure to comply may result in heavy fines, penalties and compensation claims. In Ghana, the Data Protection Act, 2012 (Act 843) requires data controllers and processors to adopt technical and organizational measures to prevent unauthorized use of personal data. Failure to comply with these provisions can result in serious consequences, as demonstrated by the recent decision of the Adentan Circuit Court, in which a company was held liable for the improper processing of a customer’s data.

2. Customer Trust and Reputation: Trust is the cornerstone of any successful business. Customers entrust their personal data to companies, often without fully understanding the risks involved. Poor data management can lead to breaches that damage customer relationships and erode brand reputation. As consumers become more aware of privacy rights, companies that fail to protect personal data may lose consumer trust and suffer significant reputational damage.

3. Prevent identity theft and fraud: One of the main risks of improper data processing is the potential for identity theft and fraud. When personal data is not sufficiently protected, malicious actors can exploit it for illegal purposes. This puts individuals at risk and creates legal liabilities for businesses. Implementing robust verification systems and security controls, particularly in sectors such as financial services and digital platforms, is key to mitigating these risks.

4. Operational efficiency and data integrity: Appropriate data processing ensures that personal data is accurate, up-to-date and relevant to the purposes for which it was collected. Inaccurate or incomplete data can lead to inefficiencies, errors in service delivery and loss of revenue. Businesses that prioritize data integrity are better positioned to make informed decisions, provide excellent customer service, and maintain efficient operations.

THE ROLE OF THE CONTROLLER

At the heart of responsible data processing is the data controller, the entity or person who determines the purposes and means of the processing of personal data. The data controller has a legal obligation to ensure that personal data is processed in accordance with the law and must take reasonable steps to protect the data against unauthorized access, modification or disclosure.

MAIN RESPONSIBILITIES OF THE DATA PROCESSOR:

1. Ensure lawful processing: the data controller must ensure that personal data is processed lawfully, fairly and transparently. This means obtaining consent from data subjects or ensuring that there is a valid legal basis for processing the data, such as contractual necessity or legal obligations.

2. Data minimization: Data controllers should only collect the personal data necessary for the specific purpose sought. Excessive data collection increases the risk of exposure and raises legal questions about the need to process excess information.

3. Security measures: Data protection law requires data controllers to take appropriate security measures to protect personal data against loss, damage or unauthorized access. Article 28 of the Data Protection Act requires data controllers to assess potential risks and establish safeguards to protect data. Regular review of these safeguards is essential to ensure they remain effective against new and evolving threats.

4. Responsibility of processors: Many companies use third parties, called processors, to manage certain data activities. Under Article 30 of the Data Protection Act, the data controller is responsible for ensuring that these processors comply with the same security and confidentiality standards. The data controller must also enter into formal contracts with data processors to ensure that data is processed in accordance with the law.

NON-COMPLIANCE RISKS

Failure to properly process personal data may result in significant legal and financial consequences. In Ghana, Section 43 of the Data Protection Act allows individuals to seek redress if they suffer harm or distress as a result of a data controller’s failure to comply. Companies that have handled personal data negligently can be held liable for damages, recent court decisions show.

For example, the Adentan Circuit Court’s ruling against Bolt Holdings OU, which failed to properly verify an identity used in its ride-sharing service, shows the importance of complying with data protection laws. This case serves as a cautionary tale for all companies that process personal data, particularly in environments where digital platforms rely on personal identification.

BEST PRACTICES FOR PROPER DATA PROCESSING

To mitigate the risks associated with inappropriate data processing, businesses should adopt the following best practices:

1. Regular data audits: Conduct regular audits of your data processing activities to ensure compliance with legal requirements. This includes reviewing how personal data is collected, stored and shared.

2. Data protection training: train employees and contractors on data protection principles and the importance of protecting personal information. This will help minimize human error, which is a common cause of data breaches.

3. Implement strict security measures: Use encryption, access controls and other security measures to protect personal data from unauthorized access. Regularly update security protocols in response to new threats.

4. Obtaining informed consent: ensure that individuals are fully aware of how their data will be used and have given explicit consent before collecting or processing their data. This promotes transparency and fosters trust.

5. Data minimization: Collect only the data necessary for your business’s specific goals. Avoid excessive data collection which could increase your liabilities in the event of a breach.

CONCLUSION

The proper processing of personal data is not only a legal obligation; it’s a business imperative in today’s data-driven economy. Businesses must ensure they comply with data protection laws, such as the Data Protection Act 2012 (Act 843), and take all necessary steps to protect personal information from unauthorized access or any misuse. The data controller plays a vital role in this process, bearing ultimate responsibility for the security and lawful use of personal data.

By adopting strong data protection measures and embedding a culture of privacy within their operations, businesses can protect themselves from legal risks, protect customer trust and ensure the integrity of their data practices.