OneTrust Certified Privacy Professional Practice Exam

Is it true or false that the GDPR applies only to organizations based in the European Union?

1. True

2. False

3. Only for certain sectors

4. Only if they deal with EU citizens

The correct answer is: False

The assertion that the GDPR applies only to organizations based in the European Union is false. The General Data Protection Regulation (GDPR) has an expansive scope and applies not only to entities that are physically located within the EU but also to any organization worldwide that processes the personal data of individuals residing in the EU. This means that a company located outside the EU—whether in the United States, Asia, or anywhere else—must still comply with the GDPR if it is handling data related to individuals residing in the EU. This extraterritorial reach is designed to ensure that the rights of EU citizens are protected regardless of where the data processing occurs. Organizations outside the EU must be mindful of GDPR requirements if they offer goods or services to, or monitor the behavior of, EU residents. Therefore, the statement inaccurately limits the scope of GDPR and overlooks its fundamental intention to provide uniform data protection for individuals in the EU.