As your startup scales and collects more user data — especially if your audience includes users from the European Union — you need to ensure your application complies with GDPR (General Data Protection Regulation). Not just because non-compliance could result in hefty fines, but because respecting user privacy builds long-term trust, which is important for sustainable growth.

GDPR sets clear rules on how personal data should be handled and gives EU users greater control over their information. In this guide, we'll walk you through 7 practical steps to make your application or platform GDPR-compliant, without slowing down your development or stifling your business’s potential.

What activities are illegal under GDPR?

First off, you need to understand what you can and cannot do under GDPR. These regulations are pretty strict, so make sure you know how to stay compliant with GDPR:

1. Collecting data without consent: You must obtain explicit, informed consent before collecting personal data. Passive consent or pre-ticked boxes are not acceptable.

2. Using data for unspecified purposes: Personal data must be collected for specific, legitimate purposes and cannot be repurposed without additional consent.

3. Neglecting user rights: GDPR grants users rights to access, rectify, delete, and restrict their data. Ignoring these requests or failing to comply with data portability and deletion requests is illegal.

4. Failing to implement adequate security: Personal data must be protected with encryption and secure protocols. Inadequate security measures or failing to notify authorities of a breach are violations.

5. Sharing data with unauthorized third parties: You must have Data Processing Agreements (DPAs) in place when sharing data with third parties and ensure proper safeguards for international data transfers.

6. Retaining data longer than necessary: Data should not be kept longer than needed for its intended purpose. Implement clear data retention and deletion policies.

7. Processing sensitive data without justification: Special categories of personal data require explicit consent or other legal justifications for processing.

To help you stay compliant and build user confidence, here are 7 essential steps for creating a GDPR-compliant web or mobile app.

How to ensure your startup is GDPR-compliant

1. Understand what data you’re collecting

The first step is to examine what personal data your app collects, such as:

• Names, emails, and phone numbers

• Location data

• Device identifiers and IP addresses

• Behavioral data, such as user preferences or interactions within the app

Under GDPR, only collect data that is necessary for your application’s functionality, avoiding excess. This is known as data minimization and ensures you’re not gathering more information than you need.

2. Get explicit user consent

Before collecting any personal data, you must get explicit consent from users. To meet GDPR requirements:

• Use simple and clear language when asking for consent.

• Inform users about what data you’re collecting, why you’re collecting it, and how it will be used.

• Provide an option for users to opt-in and ensure they can withdraw consent just as easily.

For example, if your app or website tracks user behavior for analytics or advertising, users need to actively opt into these practices.

3. Change your cookie policy

To comply with GDPR, you need to rethink how your app handles cookies, ensuring users have full control over what’s tracked and stored. Cookies that collect personal data require clear user consent before they can be activated.

Here’s how to stay compliant:

• Ask for explicit consent before placing any non-essential cookies. Make sure users can accept or reject them easily.

• Use a cookie banner that explains what cookies are used for and provides options to manage cookie preferences.

• Allow users to revoke consent at any time through a simple, accessible interface.

Avoid vague language and pre-checked boxes that mislead users. Few things erode trust faster than making new users sift through multiple pop-ups just to opt-out of cookie and data collection.

4. Encrypt all personal data

Encrypting personal data is a crucial step for GDPR compliance and a smart way to keep your users' information safe. Encryption transforms data into a secret code, so even if someone gets unauthorized access, they can’t make sense of it.

Here’s how to get it right:

• Encrypt data in transit using protocols like TLS (Transport Layer Security). This keeps data secure while it’s being sent between users and your servers.

• Encrypt data at rest with strong algorithms to protect it while it’s stored, whether in your database or backup files.

• Keep encryption keys safe by following best practices for their storage and management. Regularly update and protect these keys to prevent unauthorized access.

5. Let users control their data

GDPR grants users rights over their personal data, including the ability to access, correct, or delete it. To comply:

• Provide users with a way to access the data you’ve collected on them.

• Implement features that allow users to modify inaccurate data.

• Offer an easy way for users to request data deletion (the right to be forgotten).

Your app can integrate a data management portal that allows users to manage their personal information directly.

6. Enhance the security of user authentication

To protect user data, you must ensure that your app uses strong security measures during authentication and authorization. This includes:

• Implementing multi-factor authentication (MFA) to add an extra layer of security for logging in.

• Using encrypted tokens or OAuth2 for secure authorization processes.

• Enforcing strong password policies to prevent weak credentials like password hashing or common passwords.

These practices not only comply with GDPR’s requirements for secure data handling but also reduce the risk of breaches and unauthorized access.

7. Respond to data breaches quickly

In the event of a data breach, GDPR requires that you notify the relevant data protection authorities within 72 hours and inform affected users if the breach poses a risk to their privacy. Here’s how it’s best to handle it:

• Develop a data breach response plan that outlines steps for identifying, reporting, and addressing breaches quickly.

• Set up internal procedures for monitoring data security so you can catch breaches early and minimize damage.

• Prepare a communication strategy to notify both authorities and users promptly, ensuring transparency and compliance.

By having a response plan in place, you can act fast in the event of a breach, stay compliant with GDPR, and maintain user trust.

Conclusion

Creating a GDPR-compliant app for your tech startup doesn’t have to be overwhelming. By focusing on transparency, security, and giving users control over their data, you can navigate compliance smoothly. Not only does this protect you from legal risks, but it also fosters trust with your users, building long-term success for your business.