GDPR in the US: Essential Guide to Achieving Compliance

Your marketing team just created an amazing campaign. It's ready to go live tomorrow, but wait. Does it follow GDPR rules for your EU customers? And what happens if it doesn't?

US companies have paid up to millions of dollars for breaking these rules. And it's not just big tech firms that get caught. Over 1,000 organizations faced penalties in the last year alone.

So American businesses are stuck between two worlds — trying to market effectively while also following strict EU privacy laws. This gets even harder for financial companies, investment advisors, and marketing agencies managing data for multiple clients.

The good news? You don't need to be a legal expert to get this right. This guide breaks down what US companies actually need to do about GDPR — without the complicated language.

We'll show how to protect customer data, build trust, and keep your marketing compliant. Because GDPR isn't just about avoiding fines — it's about doing right by people who trust you with their information.

How Do US Companies Approach GDPR Compliance?

US companies are still trying to figure out GDPR, and many aren't quite there yet. 91% of American businesses that need to follow these rules were still not fully ready as of late 2022, according to recent statistics. And while about half of organizations say they're "very prepared" to handle privacy laws across the US and Europe, the other half clearly feel they need to do more.

The money part gets complicated fast. Big companies are spending big — 88% of global businesses put more than $1 million each year into GDPR work, and 40% spend over $10 million, based on PwC's analysis. Smaller companies sometimes just block EU visitors because the cost feels too high.

But there's good news in all this spending. Companies typically get about $1.80 back for every dollar they spend on privacy, and 36% of businesses see returns that are at least double what they put in, according to the Cisco Benchmark Study. So the money spent isn't just going into a black hole.

What Are the Key GDPR Requirements for US Businesses?

First things first — US companies need to know if GDPR even applies to them. And the net is cast wide. If your company offers products or services to people in the EU or watches what they do online, you're caught in GDPR's rules. It doesn't matter where your servers are or where your office is located. If EU residents' data is involved, you have to follow the rules, as confirmed by NAFCU's background on data security.

So what must US businesses actually do? GDPR has several big requirements:

• You need a legal reason to collect and use personal data — like consent or fulfilling a contract
• You can't collect more data than you need or use it for things people wouldn't expect
• You have to keep data safe with good security measures
• You need to document everything you're doing with personal data

For financial companies, the bar is set even higher. Banks and investment advisors handle sensitive financial information, so GDPR expects stronger controls. You also need to check any vendors who touch customer data and make sure they follow GDPR rules too.

How Does GDPR Compliance Affect US Companies?

The impact on how companies operate is huge. Many US businesses had to completely rethink how they handle data — creating data maps, writing new privacy policies, building systems to handle customer requests, and often hiring new people.

Some tech giants like Microsoft and Apple decided to give GDPR rights to all their users worldwide. But some US news sites went the other way and just blocked EU visitors rather than deal with GDPR. Five years later, many of those Europeans never came back, which shows there's a real cost to avoiding compliance.

The risk of fines also changed how companies think. When Facebook (Meta) broke EU rules about data transfers, they got hit with a €1.2 billion fine in 2023, as Reuters reported. Suddenly, spending on compliance looked like a smart investment compared to those kinds of penalties.

What Steps Can US Companies Take to Comply with the GDPR?

Getting compliant takes work, but there's a method to it:

1. Figure out what personal data you have, where it is, and who you share it with
2. Decide on your legal basis for each type of data processing
3. Update your privacy notices in plain language
4. Make your data security stronger with encryption and access controls
5. Create processes for handling people's rights requests
6. Decide if you need a Data Protection Officer or EU representative
7. Check all your vendor contracts and update them for GDPR
8. Train your employees — 95% of organizations agree that "all employees need to know how to protect data privacy." 
9. Keep checking your compliance with regular audits

US companies are investing more in cloud solutions for GDPR help — cloud deployment makes up 69% of the market share in 2024, with data management services taking up 74% of the GDPR services market, according to industry reports.

North American businesses are taking this seriously, expanding their privacy teams and tools as digital transformation happens. Big consulting firms like Deloitte and PwC have created special GDPR offerings to help companies figure all this out, as noted in recent market research.

If your company handles EU data and breaches happen, you need to tell regulators within 72 hours under the GDPR notification rule. Many companies align their security with frameworks like NIST or ISO 27001 which match up well with what GDPR expects.

A global benchmark report found that 74% of privacy professionals think their organization "can do more" to protect privacy. So most US companies are on the way to general data protection regulation compliance but still have work to do.

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What Does GDPR in the US Mean for Data Subjects?

When US companies collect data from EU residents, those people don't lose their rights just because their information crossed an ocean. And this creates a weird situation where Europeans might have stronger protections with American companies than Americans do.

Who Are Considered Data Subjects Under the GDPR?

GDPR protects "data subjects" — but who exactly are they? Simply put, they're people in the EU whose personal information gets collected. This includes EU citizens, residents, and even visitors just passing through when their data is grabbed.

The key part for US companies: if you're collecting data from anyone physically in Europe when you collect their info, GDPR applies. So that website visitor from Paris? Protected. That German customer buying your products? Protected. That American tourist using your app while on vacation in Rome? Also protected while they're there.

What matters is where the person is when the data collection happens, not their citizenship. This means US companies can't just ignore these rules because they're across the Atlantic.

How Is Personal Data of EU Residents Protected?

The protection follows the data, not the company location. When a US business holds information about EU residents, those people's rights stick to their data like glue.

This is why we now have frameworks like the new Data Privacy Framework (DPF) between the EU and US. The DPF even sets up an independent Data Protection Review Court in the US where Europeans can complain if they think the government is spying on their data, according to the International Association of Privacy Professionals.

But the impact goes beyond just European customers. Many big tech companies decided it was easier to just give everyone the same rights. Microsoft announced they would give all Americans the same privacy rights that Californians get under their state law. Apple and other companies created privacy dashboards for users worldwide.

So Americans are getting some benefits from GDPR too — clearer opt-ins for email newsletters, better privacy notices, and in some cases fewer unwanted marketing messages. All because companies find it simpler to use one global standard than to figure out who gets what rights.

What Rights Do Data Subjects Have Under the GDPR?

EU people dealing with US companies get a robust set of rights. For example, a French customer at a US bank can ask for a complete report of all personal data the bank has about them. And the bank has to give it to them, unless there's a very good legal reason not to.

These rights include:

• The right to be told what data is collected and why
• The right to see all their personal data
• The right to fix mistakes in their data
• The right to be forgotten (have data deleted)
• The right to limit how their data is used
• The right to take their data to another company
• The right to object to certain uses of their data

Financial companies have had a hard time adjusting to this because traditional US financial privacy laws didn't give customers this much control. But they've adapted by creating special privacy portals and teams to handle these requests.

What's most important is that all these rights apply even when an EU resident's data sits on a server in Texas or California. The ocean doesn't wash away the protection.

For US businesses, this means setting up systems to honor these rights and respond quickly when EU customers exercise them. And as privacy laws continue to change, companies that get ahead of the curve by respecting data rights now will have less catching up to do later.

What Are the GDPR Compliance Challenges for US Companies?

Getting GDPR right isn't simple for US companies. The rules come from a different legal system entirely, and they often clash with how American businesses have treated data for decades. And though some companies handle it better than others, nobody finds it easy.

The money involved tells part of the story. The GDPR Services Market was worth $1.6 billion in 2024 and is expected to reach $7.3 billion by 2031 — growing at over 22% each year. Companies are spending serious cash to solve these problems.

Big companies dominate this market, holding about 71% of the market share in 2024. They have the money to throw at the problem. But smaller businesses are catching up fast, with the SME segment growing at 28% annually from 2024 to 2029. They're turning to cloud solutions they can actually afford.

Data Management Headaches

Many US companies can't even find all their data. A global survey found only about 34% of organizations had fully mapped where all their data lives.

When data is scattered across old systems that don't talk to each other, it's hard to find and update specific customer information when needed. How can you delete someone's data when you're not even sure where it all is?

Financial firms have it even worse. They need to keep certain records for years under US laws, but GDPR might require them to delete that same data if a customer asks. Square that circle.

The Expertise Gap

There simply aren't enough privacy experts to go around. According to PwC, there's an "acute skills shortage" in privacy roles.

Smaller banks and investment advisors often can't afford a full-time privacy officer or European lawyer. But GDPR needs coordination across legal, IT, security, and business teams. Without someone who knows what they're doing, mistakes happen.

When Rules Collide

US financial companies face a mess of competing regulations. GDPR says one thing, the Gramm-Leach-Bliley Act says another, and state privacy laws add their own requirements.

GDPR might tell you to delete data when a customer asks, but US financial regulations might require you to keep those same records for seven years. Companies have to carefully document these situations and hope regulators on both sides understand.

The Fear of Massive Fines

European regulators aren't playing around. In 2022 alone, they handed out €1.64 billion in GDPR fines — 50% more than the year before.

US tech companies get the biggest fines, but even smaller businesses can face penalties in the millions for security problems or ignoring customer rights requests. Companies need to watch regulatory decisions across 30+ European countries — each with their own approach to enforcement.

A Different Way of Thinking

Perhaps the biggest challenge is mental. GDPR treats personal data as something the customer loans to you, not something you own. This mindset shift can be painful for US companies used to gathering all the data they can.

Marketing teams need to rethink campaigns. IT teams need to encrypt by default. Everyone needs privacy training. It's a whole different approach to data, and culture changes slowly.

How Can US Businesses Overcome GDPR Compliance Hurdles?

Despite these challenges, US companies are finding ways to make GDPR work. Here's how many are tackling the problem:

Start With a Data Inventory

You can't protect what you don't know you have. Many companies begin with a thorough data mapping exercise. Where does personal data live in your systems? Who can access it? Where does it flow to?

This basic step helps with almost every other part of compliance. It might be tedious, but skipping it makes everything else harder.

Build a Compliance Team

Even if you can't hire full-time privacy experts, you need someone in charge of the program. Many companies create teams with members from different departments:

• Legal to interpret the requirements
• IT to implement technical controls
• Marketing to adapt campaigns
• HR to train employees
• Finance to budget for compliance tools

This cross-functional approach works better than making it just "legal's problem" or "IT's problem."

Invest in the Right Tools

Companies are spending on tools that help automate GDPR compliance:

• Data discovery software that finds personal data across systems
• Consent management platforms to track customer permissions
• Privacy request portals where customers can exercise their rights
• Encryption and access control systems to protect data

These technologies help close the gap between GDPR's demands and a company's capabilities.

Get Expert Help When Needed

When internal expertise falls short, outside help is the answer. Options include:

• Privacy consultants for specific projects
• EU-based law firms for advice on local interpretations
• GDPR compliance services that provide ongoing support
• Industry groups that share best practices

For small and medium businesses, these external resources can be more affordable than hiring full-time specialists.

What Resources Are Available to Help US Companies?

US businesses don't have to figure out GDPR alone. There are many resources available:

Government Resources

The US Department of Commerce and Federal Trade Commission offer guidance on EU data protection. The EU-US Data Privacy Framework provides a mechanism for legal data transfers, with detailed guidance available through the Department of Commerce.

Industry Associations

Trade groups for various sectors have created GDPR toolkits tailored to their industries. Financial services, healthcare, retail, and tech associations have all developed compliance guides, template documents, and training materials for their members.

Technology Solutions

The GDPR services market is booming with tools to help. These range from comprehensive compliance platforms to specialized tools for specific requirements like data subject access requests or breach notification. Cloud-based solutions are making these tools accessible to businesses of all sizes.

Professional Services

From Big Four accounting firms to boutique privacy consultancies, professional service providers offer GDPR help at various price points. They can assess current practices, recommend improvements, and even provide outsourced DPO services.

Educational Resources

Free and paid training programs are widely available. Online courses, webinars, certification programs, and conferences help staff build privacy knowledge. Many companies make this training mandatory for employees who handle personal data.

The path to compliance isn't easy, but using these resources can make it more manageable. For marketing teams in particular, thinking about gdpr and marketing together from the start helps avoid painful adjustments later.

How Do Government Agencies Enforce GDPR in the US?

When we talk about GDPR enforcement in the US, it's a bit backward. US government agencies don't actually enforce GDPR at all — European regulators do. And they can reach across the ocean to penalize American companies who handle EU residents' data.

This creates a situation where US companies answer to foreign regulators. It sounds odd, but it's been the reality since 2018, and companies have slowly gotten used to this arrangement.

Which Government Agencies Oversee GDPR Compliance?

The main enforcers are Data Protection Authorities (DPAs) from each EU country. These agencies have the power to investigate any company handling EU resident data, no matter where that company is based.

For many big American tech companies, the Irish Data Protection Commission leads enforcement because these companies put their European headquarters in Ireland for tax reasons. That's why you often see news about Ireland fining Meta or other tech giants.

But any European DPA can go after US companies. French authorities (CNIL) have fined American companies over cookie violations. German regulators have targeted US firms for inadequate security measures. When EU residents' data is involved, these regulators believe their jurisdiction follows the data.

The US government plays only a supporting role. The Department of Commerce runs the EU-US Data Privacy Framework, which helps companies transfer data legally between regions. And the Federal Trade Commission can punish companies that falsely claim to follow this framework.

This setup means that if you're a US company doing business with Europeans, you need to follow rules created and enforced by regulators you might never meet, working from offices thousands of miles away.

What Are the Fines for GDPR Noncompliance?

GDPR fines can be massive. For the most serious violations, companies face penalties up to €20 million or 4% of their global annual revenue, whichever is higher. Even less severe violations can bring fines up to €10 million or 2% of worldwide revenue, according to the official GDPR fine framework.

For big tech companies, these percentages translate to hundreds of millions or even billions. For smaller companies, the flat amounts still hurt badly.

Enforcement has gotten more serious over time. In the early days after GDPR took effect, regulators focused more on warnings and guidance. But now they're handing out big penalties with increasing frequency.

How do EU authorities actually collect these fines from US companies? If a company has European offices or assets, that's straightforward. The DPA can go after those local resources.

But what about US companies with no EU presence? In theory, enforcement gets trickier. In practice, most companies that want to keep doing business in Europe will pay up rather than get shut out of a market with 450 million consumers.

If a company refuses to pay, EU regulators might:

• Block the company's services from being accessible in Europe
• Coordinate with US authorities for help with enforcement
• Use courts to go after any European assets or revenue streams
• Make an example of the company to deter others

Most companies find it easier to comply than fight. And this compliance pressure has been effective enough that GDPR has influenced how companies treat data globally, not just for European customers.

For US companies operating internationally, the GDPR fine structure creates real business risks that need to be managed carefully. The days when American businesses could ignore foreign privacy laws are long gone.

Can you store data in the U.S. under GDPR?

Yes, you can — but there's a big "however" coming.

You need special safeguards to do it legally. GDPR doesn't like personal data leaving Europe unless it goes somewhere with similar privacy protections. And the US, with its government surveillance programs and different privacy approach, doesn't automatically qualify.

So companies need to use specific legal mechanisms to make these transfers work:

1. EU-US Data Privacy Framework (DPF): This is the newest option and replaced the invalidated Privacy Shield. US companies can self-certify under this framework, which the EU has approved as providing adequate protection. It includes limits on US surveillance and gives Europeans ways to complain if their data is accessed improperly.
2. Standard Contractual Clauses (SCCs): These are pre-approved contract terms from the EU. Both the sending and receiving companies sign these agreements, which legally bind the US company to GDPR-level protection.
3. Binding Corporate Rules (BCRs): These work for data transfers within a multinational company (like a US parent company and its EU subsidiary). They're comprehensive internal privacy policies approved by EU authorities.

Without one of these mechanisms, sending EU data to US servers breaks GDPR rules. Meta learned this the hard way when they got hit with a €1.2 billion fine because they kept transferring data after Privacy Shield was invalidated.

The cost factor matters too. About 89% of organizations report "significant additional operational costs" from dealing with data location requirements. Companies either pay to duplicate their infrastructure in Europe or invest in legal and technical safeguards for US storage. Neither option comes cheap.

Most companies find ways to make US storage work because completely isolating EU data often costs more than implementing the required protections. But the legal hoops make this far from straightforward.

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GDPR in the United States. FAQ

What is the GDPR and why is it important for US Companies?

The General Data Protection Regulation or GDPR is a comprehensive privacy law enacted by the European Union to protect the personal data of individuals within the EU. Despite being an EU regulation, the GDPR applies to US companies that process personal data of EU residents. It is crucial for US businesses to understand and comply with the GDPR to avoid fines for GDPR noncompliance and maintain trust with their international customers.

Does the GDPR apply to US Companies?

Yes, the GDPR applies to US companies if they offer goods or services to individuals in the EU or monitor their behavior. This means a US company falls under the regulation if it is involved in the processing of personal data related to individuals in the EU, regardless of whether the company has a physical presence in an EU member state.

What steps should US Companies take to achieve GDPR compliance?

To achieve GDPR compliance, US companies should follow a GDPR compliance checklist which includes: identifying whether the GDPR applies to them, appointing a data protection officer if necessary, implementing technical and organizational measures, updating their privacy policies to be compliant with the GDPR, and establishing protocols for handling a data breach.

What is considered Personal Data under the GDPR?

Under the GDPR, personal data refers to any information that can identify a natural person, directly or indirectly. This includes names, identification numbers, location data, and online identifiers. Categories of data such as genetic, racial, and biometric information are also protected under the regulation, emphasizing the broad scope of data privacy protection.

Final Thoughts: Staying Ahead of GDPR Compliance

GDPR compliance for US companies isn't going away. In fact, it's getting more complex as enforcement ramps up. The days of ignoring European privacy rules or treating them as someone else's problem are long gone. And with fines reaching into the billions, the stakes are higher than ever.

For marketing teams and compliance officers, this creates a daily balancing act. You need to run effective campaigns while staying on the right side of regulations that weren't written with your business in mind. Every email blast, social post, and landing page becomes a potential risk.

The companies that manage this well aren't the ones with the biggest legal teams. They're the ones that build compliance into their processes from the start. They use tools that catch issues before campaigns go live, not after complaints come in.

So if you're tired of:

• Last-minute compliance reviews delaying campaign launches
• Uncertainty about whether your marketing assets meet GDPR requirements
• The constant back-and-forth between marketing and legal teams
• Watching competitors enter European markets while you hold back due to compliance concerns

Then it might be time to look at how AI can help. Luthor automatically reviews your marketing assets for compliance issues, helping reduce the risk, effort, and time it takes to manage GDPR requirements at scale.

No tool can guarantee 100% compliance — that would be a claim no responsible company would make. But the right technology can help your team spot potential problems earlier and work more efficiently.

Want to see how Luthor could fit into your compliance workflow? Request demo access today and see firsthand how AI-powered compliance reviews could help your team navigate the complex world of GDPR with greater confidence.

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