As of September 14, 2023, Saudi Arabia’s Personal Data Protection Law (PDPL) has taken effect, representing a major milestone in the strengthening of data privacy and security in the Kingdom. This legislation is not merely a regulatory mandate; it is part of Saudi Vision 2030, which seeks to transform the digital environment and support the digital economy. For online and e-commerce businesses, being aware of and adhering to the PDPL are central to establishing trust with consumers as well as their long-term prosperity.

Overview of the PDPL

The PDPL aims to secure people’s personal information but also give clear directions to organizations about handling, disclosing, and storing such data. The legislation governs public and private organizations within Saudi Arabia and even foreign organizations dealing with data concerning Saudi residents.

Key Aims of the PDPL

• Data Protection: Securing personal data from unauthorized access and violations.
• Transparency: Making sure people know how their information is being used.
• Accountability: Making organizations accountable for their data practices.
• Consumer Trust: Creating trust in the digital economy by safeguarding personal data.

Applicability of the PDPL

The PDPL extends to personal data processing inside Saudi Arabia, subject to certain exceptions in regard to non-commercial or private data processing. Organizations need to be cognizant of the territorial jurisdiction, covering domestic as well as foreign organizations handling data pertaining to Saudi residents.

Compliance Obligations for E-commerce Organizations

For compliance under the PDPL, e-commerce and online organizations are required to take a number of basic steps:

1. Consent Requirements

Seeking clear consent from persons prior to processing their personal information is obligatory. Such consent must be purpose-specific, and persons are entitled to withdraw their consent at any moment. Consent processes must be simple and available to organizations.

2. Creating Privacy Policy

There must be a clear privacy policy. The policy should contain:

• The intended use of the collection of data.
• The kind of data being collected.
• Means of storage, processing, and destruction.
• Rights of data subjects and how they can exercise these rights.

3. Security Standards

Strong security standards need to be in place to safeguard personal data, particularly during transfers. Adherence to the PDPL’s implementing regulations is essential to guarantee data security.

4. Data Breach Disclosure

In case of a data breach, organizations should notify the supervisory authority within 72 hours. In cases where the breach is likely to result in a high risk to personal data, notification to affected individuals is also mandatory immediately.

5. Designation of a Data Protection Officer (DPO)

Organizations must nominate a DPO who will ensure compliance with data protection procedures. The DPO must be knowledgeable about the PDPL and its implications on the organization.

6. Data Protection Impact Assessments (DPIA)

Performance of DPIAs is crucial for evaluating potential risks involved in data processing activities. This evaluation assists organizations in determining and avoiding risks before they cause problems.

7. Processing Activity Records

Keeping proper processing activity records is imperative. Records should contain information relating to data subjects, purpose of processing, and periods for which the personal data is being held.

8. Third-Party Vendor Management

Third-party vendors should be vetted by the organizations for demonstrating compliance with the PDPL. Third-party vendors need regular auditing to affirm their adherence to data protection criteria.

9. Cross-Border Data Transfers

Exposure of data out of Saudi Arabia is possible only if there is sufficient protection given to the personal data at the destination. There should be proper compliance of Personal Data Transfer Regulations by the organizations.

10. National Register of Controllers

Registering with the National Register of Controllers, in accordance with instructions issued by the Saudi Data and Artificial Intelligence Authority (SDAIA), is mandatory for the organizations.

Rights of Individuals Under the PDPL

The PDPL provides individuals with a number of rights over their personal data, including:

• Right to be Informed: Individuals are entitled to be informed of the legal basis for processing their data.
• Right to Request Access: Individuals are entitled to access their personal information and obtain a copy at no charge.
• Right to Correction: Individuals are entitled to request corrections to their data if it is incomplete or inaccurate.
• Right to Destruction: Individuals are entitled to request the destruction of their personal data.

Organizations need to make these rights available and allow people to exercise them within 30 days.

Roadmap for PDPL Compliance

To become compliant with the PDPL, organizations can use the following steps:

1. Understand Requirements: Get familiar with the scope and requirements of the PDPL.
2. Obtain Consent: Get clear consent for data processing and inform about data usage.
3. Report Breaches: Inform authorities and concerned individuals immediately in the event of a data breach.
4. Adhere to Processing Principles: Ensure accuracy, security, and consent of data.
5. Respect Data Subject Rights: Respect individuals’ rights over their data.
6. Maintain Processing Records: Maintain detailed processing records.
7. Conduct Privacy Risk Assessments: Assess privacy risks of data processing.
8. Implement Protection Safeguards: Safeguard data from unauthorized access.
9. Regulate Data Transfers: Ensure PDPL standards compliance for data transfers.
10. Stay Updated: Keep up to date with changes in regulations and use technology for compliance.

Penalties for Non-Compliance

Non-compliance with the PDPL can result in severe penalties, including fines and imprisonment. Organizations must take compliance seriously to avoid these consequences.

Conclusion

With Saudi Arabia pushing its digital economy further, adherence to the PDPL is not merely a regulatory requirement but also a strategic imperative for online and e-commerce businesses. Organizations can establish consumer confidence and secure a safe digital environment by putting in place strong data protection controls and ensuring transparency. Adopting these compliance standards will not only protect personal data but also increase businesses’ overall reputation and success in the Kingdom.