GDPR in the US: Requirement Checklist and How To Apply

Data privacy isn’t just another hot topic—it’s something businesses have to take seriously. Surveys show that more than 60% of consumers are uneasy about how their personal data is handled, and since 2018, regulators in the EU have handed out over 500 fines. That’s a pretty loud warning bell, even for companies in the U.S.

If you think GDPR doesn’t apply to your business, think again. It’s not just an EU regulation—it can affect American companies too. So, who’s actually enforcing it? What do U.S. businesses need to do to stay GDPR compliant? And how can you avoid the kind of mistakes that lead to hefty fines?

This guide will break it all down in plain English—no legal jargon, no fluff. Just a straightforward roadmap to help you protect customer trust, steer clear of penalties, and stay ahead in today’s digital world. Let’s dive in.

Does the GDPR Apply to the US?

Yes, GDPR applies to some U.S. businesses. Even though it’s an EU regulation, it doesn’t stop at European borders. If your company collects or processes personal data from EU residents, you might have to comply—whether you’re based in New York, California, or anywhere else.

GDPR takes a broad approach to what it considers “processing.” It’s not just about collecting data—it includes storing, using, or even deleting it. According to Article 3, the law applies to any company handling EU residents’ personal data, no matter where that data is processed. So, if your U.S. business sells to EU customers, offers services in Europe, or even just tracks website visitors from the EU, you could be on the hook for compliance.

And don’t assume enforcement is just for European companies. Since GDPR went into effect, regulators have handed out more than 500 fines—including to major U.S. firms. One example? Twitter got slapped with a €450,000 fine for failing to report a data breach within the required 72-hour window. Cases like this make one thing crystal clear: your company’s location doesn’t exempt you from GDPR. If you handle EU data, you need to play by EU rules.

Are US Companies Subject to GDPR?

In many cases, yes. Even though GDPR is an EU law, U.S. businesses can still fall under its scope in two key ways: by having a presence in the EU or by actively targeting EU residents.

The Establishment Rule

If your company has any kind of presence in the EU—whether it’s an office, a subsidiary, or even just a local sales rep—then any data processed in that context is subject to GDPR. For example, if your U.S.-based company has a team in Europe handling customer service, any personal data they process must comply with GDPR.

The Targeting Rule

But what if your business isn’t physically in the EU? You could still be on the hook if you actively “target” EU residents. That means GDPR applies if you:

• Sell products or services to customers in the EU
• Accept payments in Euros
• Run ads or marketing campaigns aimed at people in Europe

One good example would be Uber. Since this app tracks the location of both drivers and passengers worldwide—including in Europe—it inevitably collects and processes data from EU users. Because of this, Uber falls under GDPR’s jurisdiction.

Understanding these rules can help U.S. businesses figure out whether GDPR applies to them—and, more importantly, how to avoid compliance headaches down the road.

Who Enforces GDPR in the U.S.?

Even though GDPR is an EU law, U.S. businesses aren’t necessarily in the clear. If your company collects or processes data from EU residents, you could still be held accountable. Data Protection Authorities (DPAs) in each EU country oversee compliance and don’t hesitate to go after companies—no matter where they’re based—if they violate the rules.

Each EU nation has its own Supervisory Authority responsible for enforcing data protection laws. If a business operates in multiple EU countries, it mainly deals with a lead authority under GDPR’s “one-stop-shop” system. This setup streamlines enforcement and prevents companies from having to answer to multiple regulators at once.

Several big-name U.S. companies have already faced hefty fines for GDPR violations:

• Twitter – In 2020, Ireland’s DPA fined Twitter €450,000 for failing to report a data breach within the required 72-hour window.
• Meta & Google – These tech giants have been hit with multi-million euro penalties for failing to comply with GDPR. France’s CNIL fined Google €50 million for not obtaining proper user consent for personalized ads.
• Amazon – The e-commerce giant has also been penalized for its handling of customer data, receiving one of the largest GDPR fines to date.

The takeaway is clear: If your company processes data from EU residents, GDPR applies to you—whether you’re in New York, California, or anywhere else. 

Regulators are paying attention, and failing to comply can result in major financial penalties and reputational damage.

How Businesses Can Prepare for GDPR in the US

For US companies handling personal data from EU residents, GDPR compliance isn’t just recommended—it’s required. This regulation applies to any business that collects, processes, or stores data from individuals in the European Union, regardless of where the company is located.

Ensuring compliance involves several key steps, from understanding what data you collect to putting the right safeguards in place. Below, we’ll break down the essential actions businesses must take to meet GDPR requirements.

Conduct a Full Data Audit

The first step in GDPR compliance is knowing exactly what personal data your business collects, where it comes from, and how it’s used.

• Data Inventory – Make a detailed list of all the personal data your company collects, stores, and processes. This includes customer information, employee records, and third-party vendor data.
• Data Mapping – Understand how data flows through your company—from collection points (such as online forms, transactions, and cookies) to storage locations (like cloud servers and internal databases).
• Data Classification – Not all data is the same. Basic details like names and emails require protection, but financial data, health records, and personal identifiers need stronger security measures.

A well-documented data audit helps businesses identify risks and strengthen data protection strategies.

Make Sure You Have a Legal Reason for Collecting Data

GDPR requires businesses to have a valid legal basis for collecting and using personal data. The most common justifications for US companies include:

• User Consent – If you collect data for marketing, personalization, or analytics, you must get clear and explicit permission from users (no pre-checked boxes).
• Contractual Obligation – If data processing is essential for providing a service (such as processing payments or shipping orders), it’s legally justified.
• Legitimate Interest – Businesses can process data if it benefits the company without overriding user rights, but this must be documented and justified.

Businesses should record their legal bases and update their privacy policies to reflect them.

Protect Data When Transferring It Internationally

If your company transfers EU customer data to the US, you must follow GDPR-approved safeguards to ensure compliance.

• Use Standard Contractual Clauses (SCCs) – These pre-approved legal agreements ensure that EU data is handled securely when transferred outside the EU.
• Consider the EU-US Data Privacy Framework – Some US businesses can self-certify under this program, but SCCs or additional safeguards may still be required.
• Review Data Protection Measures Regularly – Since US privacy laws differ from GDPR, businesses should conduct security assessments to ensure compliance.

Strengthen Data Security and Storage Practices

GDPR requires businesses to protect personal data from unauthorized access, loss, or breaches. Here’s how to ensure compliance:

• Encrypt Sensitive Data – Apply encryption to data stored on servers and during transfers to prevent unauthorized access.
• Limit Access to Data – Implement role-based access controls so only authorized employees can view or process certain data.
• Use GDPR-Compliant Cloud Providers – If storing customer data in the cloud, choose a provider with strong security measures and, ideally, EU-based servers.
• Have a Data Breach Plan in Place – If a security breach occurs, businesses must detect, report, and respond within 72 hours.

Investing in strong security measures not only keeps your business compliant but also protects customer trust.

Collect and Manage User Consent Properly

GDPR has strict guidelines on how businesses collect and manage user consent. To stay compliant:

• Be Transparent About Data Collection – Use clear, simple language when asking for consent. Users should know exactly what they’re agreeing to.
• Allow Easy Opt-In and Opt-Out – Whether for email subscriptions, cookies, or marketing, customers must have an easy way to accept or reject data collection.
• Keep Records of Consent – Maintain logs of when and how users gave consent, and give them the option to change their preferences anytime.
• Special Rules for Minors – If your service targets children, you may need parental consent before collecting their data.

Let’s be real—keeping up with GDPR compliance is frustrating. You’ve got better things to do than worry about cookie banners and compliance updates. That’s why Consentik App exists: to handle the privacy headaches so you don’t have to.

With a fully customizable cookie banner, automatic script blocking, and multi-language support, Consentik makes compliance simple. It also plays nice with Google Consent Mode V2, Web Pixel, and IAB TCF v2.2, so you won’t have to wrestle with complicated integrations.

More than just compliance, this is about trust. Your users want transparency, and you want peace of mind. That’s why Consentik automatically scans for cookies, tracks user preferences, and keeps airtight consent records—so you’re covered if regulations change. And if you ever get stuck? Consentik has a 24/7 support team.

Why make compliance harder than it needs to be? Let Consentik do the heavy lifting while you focus on growing your business.

Ensure Third-Party Vendors Follow GDPR

If your business shares customer data with external vendors, you are responsible for ensuring they follow GDPR regulations.

• Sign Data Processing Agreements (DPAs) – Any vendor handling personal data must sign an agreement confirming their compliance with GDPR.
• Verify Security Standards – Work with vendors who have GDPR certifications or meet global security standards like ISO 27001.
• Monitor Sub-Processors – If your vendor uses third parties for data processing, make sure they are also GDPR-compliant.

Failing to ensure vendor compliance can put your business at risk, so regular audits and contract updates are essential.

Be Ready to Handle Data Breaches

Even with strong security measures, breaches can happen. Under GDPR, businesses must respond quickly and transparently.

• Notify Authorities Within 72 Hours – If EU personal data is compromised, businesses must report the breach to the appropriate data protection authority.
• Inform Affected Users If Necessary – If a breach poses a high risk, customers must be notified immediately with clear steps to protect themselves.
• Keep Detailed Incident Logs – Maintain records of what happened, what was done to fix it, and how future incidents will be prevented.

A well-prepared breach response plan helps limit damage and legal consequences.

Assign Key Compliance Roles

Some businesses may need dedicated personnel to oversee GDPR compliance.

• Data Protection Officer (DPO) – Required for businesses that process large amounts of personal data or monitor user behavior. A DPO ensures compliance and communicates with regulators.
• EU Representative – If your business doesn’t have an EU office but collects data from EU users, you must appoint an EU-based representative to handle compliance inquiries.

These roles help ensure accountability and readiness for any GDPR-related concerns.

GDPR Checklist for US Companies

To simplify your compliance journey, here is a concise checklist that encapsulates the essential steps:

Checklist Item	Action	Check
Data Audit & Mapping	✅ Take inventory of all personal data collected, processed, and stored.	🔲
	✅ Map out how data moves through your systems, including third-party vendors.	🔲
	✅ Classify data based on sensitivity and purpose, ensuring additional protection for higher-risk data.	🔲
Establish a Legal Basis for Processing	✅ Document the legal basis for every data processing activity (consent, contractual necessity, legitimate interests).	🔲
	✅ Ensure user consent is explicit, clear, and easy to withdraw.	🔲
Secure International Data Transfers	✅ Use Standard Contractual Clauses (SCCs) or the EU-US Data Privacy Framework.	🔲
	✅ Conduct regular impact assessments to evaluate security risks in international transfers.	🔲
	✅ Store EU data in EU-based data centers to minimize transfer risks, when possible.	🔲
Strengthen Data Security Measures	✅ Encrypt data at rest and in transit.	🔲
	✅ Implement strict access controls and conduct regular security audits.	🔲
	✅ Develop and periodically test a data breach response plan.	🔲
Manage User Consent Properly	✅ Use clear and transparent consent forms, including cookie banners for websites targeting EU users.	🔲
	✅ Maintain records of user consent, including how and when it was given or withdrawn.	🔲
	✅ Follow regulations for processing children’s data, ensuring parental consent where necessary.	🔲
Vendor & Third-Party Management	✅ Sign Data Processing Agreements (DPAs) with all vendors handling EU personal data.	🔲
	✅ Review vendor security policies and compliance certifications regularly.	🔲
	✅ Ensure international transfer safeguards are included in vendor contracts.	🔲
Prepare for Data Breach Notifications	✅ Establish procedures to detect, investigate, and report data breaches in a timely manner.	🔲
	✅ Create pre-drafted templates for notifying regulators and affected individuals within 72 hours if required.	🔲
	✅ Keep detailed logs of data breaches, investigations, and actions taken.	🔲
Define Organizational Roles & Responsibilities	✅ Appoint a Data Protection Officer (DPO) if required.	🔲
	✅ Designate an EU representative if processing EU user data without a physical presence in the EU.	🔲
	✅ Train employees on GDPR compliance and best practices.	🔲
Update Privacy Policies	✅ Ensure your privacy policy is GDPR-compliant and transparent about data usage.	🔲
	✅ Communicate how users can request, modify, or delete their data.	🔲
	✅ Publish contact details for your DPO or EU representative.	🔲

This checklist simplifies GDPR compliance, helping your business protect user data, reduce legal risks, and build trust. You can download the checklist here and change it in your own way!

FAQs

What If a US Business Has No EU Office?

Even if your company doesn’t have a physical presence in Europe, you are still required to appoint an EU representative—a local contact for regulators and consumers. Ignoring this requirement can lead to fines and enforcement actions.

Are US Companies Bound by GDPR?

Yes, they are—if they handle personal data from people in the European Union (EU). The GDPR applies to any business that collects, stores, or processes data from EU residents, no matter where that company is based. So even if a business is fully U.S.-based, it still has to play by GDPR rules if it interacts with EU customers.

Is There Something Similar to GDPR in the US?

Not exactly. The U.S. doesn’t have one big, overarching privacy law like GDPR. Instead, data protection here is a patchwork of federal rules, state laws, and industry regulations. The California Consumer Privacy Act (CCPA) is probably the closest thing, giving California residents more say over how their personal data is collected and shared. Other states, like Virginia and Colorado, have passed similar laws, but there’s no single federal standard—at least, not yet.

Final Thoughts

To comply with GDPR US, it’s crucial that your company implements these data protection practices. Act now, avoid penalties, and protect your customers’ privacy. Start ensuring your business’s compliance with these essential steps today!