GDPR Compliance for SaaS Companies
If your SaaS product is used by EU residents — even if your company is US-based — GDPR applies. SaaS companies that process personal data as a service face dual obligations: as a Data Controller (for their own user data) and as a Data Processor (for customer data processed on behalf of customers).
Regulatory Authority: Regulation (EU) 2016/679
Penalty Range: Tier 1: Up to €10M or 2% of global annual turnover; Tier 2: Up to €20M or 4% of global annual turnover (whichever is higher, per Article 83)
Penalty Range: Tier 1: Up to €10M or 2% of global annual turnover; Tier 2: Up to €20M or 4% of global annual turnover (whichever is higher, per Article 83)
Key GDPR Requirements for SaaS Companies
- Data Processing Agreements (DPAs) with all enterprise customers who are EU-based
- Privacy by Design: data minimization, purpose limitation baked into product architecture
- Cookie consent mechanism: explicit opt-in for non-essential cookies
- Privacy Policy and Terms of Service updated for GDPR (lawful basis, data subject rights)
- 72-hour breach notification to supervisory authority
- Data Subject Rights handling: access, erasure ('right to be forgotten'), portability within 30 days
- Sub-processor list maintained and disclosed to customers
Common Violations & Pitfalls
- No DPA with enterprise customers processing EU personal data
- Analytics cookies firing without explicit consent
- No process for handling data subject access requests
- US-based data transfers without Standard Contractual Clauses (SCCs)
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