GDPR

Avoid Costly GDPR Fines: A Guide to Creating Compliant Forms

calendar-iconJan 10, 2025 |time-icon , read

The General Data Protection Regulation (GDPR) has reshaped the way businesses collect, handle, and store personal data of EU citizens. Since its implementation in 2018, companies that fail to comply with GDPR regulations risk facing severe GDPR fines.

Did you know?

Meta was hit with a historic €1.3 billion fine in May 2023 for transferring European user data to the U.S. without proper protection mechanisms, marking the largest GDPR fine to date.

Amazon was fined €746 million in 2021 for violating GDPR by the Luxembourg National Commission for Data Protection (CNDP) over its advertising targeting system, which lacked proper consent from users.

TikTok faced a €345 million fine in 2023 for mishandling children’s accounts, particularly in terms of data processing, transparency, and fairness.

A primary source of non-compliance is often poorly designed forms that don’t meet GDPR standards. In this guide, we’ll explore actionable tips to help you avoid a GDPR compliance penalty by creating forms that respect user data and follow the law.

Understanding GDPR and Its Impact

GDPR is a European Union (EU) regulation designed to give individuals more control over their personal data. Its principles apply to any organization that processes the data of EU citizens, regardless of where the organization is located.

Why Non-Compliance Matters:

  1. Financial Consequences: GDPR non-compliance can lead to massive GDPR fines, which can cripple small businesses and significantly impact larger organizations.
  2. Reputational Damage: Beyond the financial aspect, companies that fail to comply face a loss of customer trust, potentially damaging their brand.
  3. Legal Action: GDPR violations can result in lawsuits, further adding to the cost of non-compliance.

Types of Fines For a GDPR Violation

The General Data Protection Regulation (GDPR) imposes financial penalties based on the severity of non-compliance. These fines are divided into two levels: Level-One for less severe violations and Level-Two for more severe breaches. Below is a summary of the fines and their applicable scenarios:

Fine Tier Penalty Examples of Violations
Level-One Fines (Article 83(4)) Up to €10 million or 2% of the company’s worldwide annual revenue, whichever is higher.
  • Failing to maintain proper data records.
  • Not appointing a Data Protection Officer (DPO).
  • Not reporting breaches.
  • Failing to cooperate with Supervisory Authorities.
Level-Two Fines (Article 83(5)) Up to €20 million or 4% of the company’s worldwide annual revenue, whichever is higher.
  • Failing to obtain valid consent.
  • Violating basic principles of data processing (e.g., transparency, accountability).
  • Ignoring data subject rights.
  • Transferring personal data outside the EU without safeguards.

Key Requirements for GDPR-Compliant Forms

Creating forms that avoid GDPR compliance penalties involves more than just ticking a few boxes. Here are the key requirements your forms must meet:

1. Explicit Consent

GDPR mandates that organizations obtain clear and affirmative consent from users before collecting their data.

  • How to Ensure Compliance:
    • Use checkboxes for consent that are unchecked by default.
    • Avoid pre-ticked boxes or implicit consent.
    • Clearly state what the user is consenting to, such as subscribing to a newsletter or agreeing to terms of service.

2. Purpose Limitation

Collect data only for specific, explicit, and legitimate purposes.

  • How to Ensure Compliance:
    • Specify why you are collecting the data on your forms.
    • Avoid requesting unnecessary information.
    • Use concise and jargon-free language to describe the purpose.

3. Data Minimization

Gather only the data that is essential for your stated purpose. Excessive data collection increases the risk of a GDPR compliance penalty.

  • How to Ensure Compliance:
    • Remove non-essential fields from your forms.
    • Regularly audit your forms to ensure they collect only the necessary data.

4. Right to Access and Erasure

Users have the right to access their personal data and request its deletion under GDPR.

  • How to Ensure Compliance:
    • Include a privacy notice on your forms with details on how users can access or delete their data.
    • Provide a clear process for handling data access and erasure requests.

5. Secure Data Transmission

Data security is a cornerstone of GDPR. Breaches can lead to hefty GDPR fines and legal action.

  • How to Ensure Compliance:
    • Use HTTPS to encrypt data transmitted through forms.
    • Store collected data securely and limit access to authorized personnel only.
    • Regularly update your security measures to protect against vulnerabilities.

Tips for Building GDPR-Compliant Forms

To avoid a GDPR penalty, bookmark this table that has all the best practices when designing your forms:

Best Practices for GDPR Forms Description What to Include/Questions to Ask
1. Include a Privacy Policy Link Link to your privacy policy explaining how user data is handled.
  • What data you collect.
  • How the data will be used.
  • Who the data will be shared with.
  • Contact details for your Data Protection Officer (DPO).
2. Use Double Opt-In for Email Subscriptions Ensure users genuinely consent to receiving emails with a double opt-in process.
  • After email submission, users receive a confirmation email with a link to validate their subscription.
  • This creates a record of explicit consent.
3. Design Clear and Transparent Consent Requests Use plain language and provide separate consent options for different purposes.
  • Use plain language.
  • Clearly state what users are agreeing to.
  • Provide separate consent options for different purposes (e.g., marketing, product updates).
4. Audit Third-Party Tools Ensure third-party tools for data processing are GDPR-compliant.
  • Do they have data processing agreements (DPAs)?
  • How do they secure user data?
  • Are they GDPR-certified?
5. Regularly Test Your Forms Periodically test your forms to ensure they remain compliant as regulations evolve.
  • Test consent mechanisms.
  • Ensure data transmission security.
  • Check the compliance of third-party integrations.

Tools for Creating GDPR-Compliant Forms

The easiest way to go about creating GDPR compliant forms is to use a form builder that is already GDPR compliant! A few form builders exist that can help you create forms that adhere to GDPR standards, reducing the risk of GDPR compliance penalties:

  1. MakeForms: Has GDPR-friendly form templates that are ready to go.
  2. Google Forms: While basic, it allows for customization to meet GDPR requirements.
  3. Typeform: Offers GDPR-compliant features like encrypted data collection.

GDPR Forms: Prevention is Better Than Fines

Start implementing these practices today to ensure your forms meet GDPR standards. From linking a clear privacy policy to using double opt-in processes and auditing third-party tools, every step you take toward compliance strengthens your commitment to protecting user privacy. The result? A business that thrives on trust and avoids the massive fines of GDPR violations.