How to Use WhatsApp for Business While Staying GDPR-Compliant

With over 2 billion users, WhatsApp is one of the most popular messaging apps worldwide — in Germany alone, more than 80% of the population uses the service daily. It's no surprise that many companies want to use WhatsApp for business, too — for support, marketing, or direct customer dialogue.

But be careful: Using WhatsApp in a business context comes with significant data protection risks. Without appropriate measures, you can quickly violate the GDPR — with potentially high fines. In this article, we show how companies can use WhatsApp in a GDPR-compliant way and which tools, contracts, and strategies help along the way.

Related article: Data Protection and WhatsApp — Is the Messenger Signal an Alternative?

WhatsApp's Problematic Compliance History

Despite its popularity, WhatsApp faces major challenges when it comes to complying with data protection regulations.

In 2021, the international messaging app, owned by Meta (formerly Facebook), was fined 225 million euros by the Irish data protection authority for violating data protection regulations. This fine was the highest ever imposed by the Irish Data Protection Commission and the second highest under the EU's new GDPR rules.

The investigation into WhatsApp's compliance issues began in 2018 and focused on whether the company was transparent enough in how it handled user data. Regulators found that WhatsApp's privacy policies were not clear enough, particularly regarding how data is stored and processed. This lack of transparency raised significant concerns, especially given WhatsApp's dual use for private and professional communication. Due to these shortcomings, lawyers and data protection experts often advise against using WhatsApp for business communication.

Related article:  Data Processing Agreement (DPA) — heyData Creates Transparency

GDPR Requirements for Using WhatsApp

To use WhatsApp in a GDPR-compliant way, companies must observe several key principles:

• Data minimization: Only collect data that is necessary for the specific purpose.
• Purpose limitation: Only use data for the purposes explicitly stated at the time of collection.
• Consent: Obtain users' explicit consent before processing their data.
• Data subject rights: Ensure that users can exercise their rights to access, rectify, and delete their data.

What Data Does WhatsApp Collect From Its Users?

Since 2016, all chats on WhatsApp have been end-to-end encrypted. This means WhatsApp cannot read, process, or share the content of messages with unwanted third parties such as Facebook or Instagram.

However, things are different for unencrypted metadata generated in the cloud during communication. Simply put, metadata is data about data. This includes information such as:

• Device name and type
• IP address
• Location
• Time of day
• Profile photos, names, and descriptions
• Contacts

Even though metadata does not reveal the actual content of conversations, it can still paint a fairly clear picture of a user's behavior. WhatsApp currently sends this data to other EU countries and shares it with its parent company Meta to maintain and secure the service.

This applies to both the WhatsApp app and the WhatsApp Business app.

Under the GDPR, the processing of personal (meta)data requires users' explicit consent. This is usually governed by a Data Processing Agreement (DPA), which defines how your company and WhatsApp handle data. However, the personal WhatsApp app does not support DPAs. So to use WhatsApp for your business, you would theoretically have to obtain consent from every customer and prospect individually.

So how can your company overcome this obstacle?

Two Ways Companies Can Use WhatsApp

In addition to the regular app for private use, WhatsApp offers two options for businesses: the WhatsApp Business App and the WhatsApp Business API, also known as the WhatsApp Business Platform. Although both are designed for business use, their features, capabilities, and costs differ significantly.

In short: The Business App is ideal for entrepreneurs and very small support teams, while the Business Platform is suited to larger, professional sales and marketing teams.

Despite end-to-end encryption, the WhatsApp Business App is not GDPR-compliant and should not be used for company communication. Four main points can conflict with data protection laws:

1. WhatsApp processes metadata relevant under the GDPR, which companies cannot prevent.
2. WhatsApp has access to contact data by default. This can be avoided by not allowing the app to access your contacts or by using the Business App on a separate device with business contacts only.
3. WhatsApp stores backups unencrypted by default. You can encrypt backups in the app's settings.
4. WhatsApp stores undelivered messages on its servers, which cannot be prevented.

That leaves the WhatsApp Business Platform, the generally recommended solution for business customers. It is a paid service designed for medium-sized to large companies. The API allows you to send messages via WhatsApp without WhatsApp processing personal data or storing messages on its servers. GDPR compliance therefore depends on the company integrating the API, not on WhatsApp.

Using the WhatsApp Business API in a GDPR-Compliant Way

However, WhatsApp does not offer an app for using APIs. Instead, companies must use external customer messaging software and connect it to the WhatsApp interface to send messages and communicate with customers. The API thus acts as a backend system that connects to CRM tools, helpdesk software, and other messaging platforms so companies can manage their customer communication efficiently.

These external messaging tools are called Business Solution Providers (BSPs) and are specifically certified by WhatsApp. 

You can find a list of WhatsApp Business Solution Providers on the Meta website. It is important to choose a BSP based in the EU or EEA — or with certified server infrastructure in these regions — and to make sure it can delete all data and communication with individual customers upon request.

Real-World Example: KLM Royal Dutch Airlines

KLM Royal Dutch Airlines is a prime example of a company that uses the WhatsApp Business API while complying with the GDPR. KLM uses the API to provide customers with booking confirmations, flight status updates, and service requests.

KLM ensures GDPR compliance by:

• Obtaining explicit consent: KLM makes sure customers opt in to receive communications via WhatsApp. This is done through clear consent forms during the booking process.
• Data minimization: Only the necessary customer data is collected and processed, and solely for the purpose of communicating about their bookings and flights.
• Using certified BSPs: KLM works with EU-based Business Solution Providers (BSPs) certified by WhatsApp, ensuring that all data processing meets GDPR standards.
• Safeguarding data subject rights: Customers can request access to their data, make corrections, or request deletion.

By following these steps, KLM maintains transparency and its customers' trust while using WhatsApp for improved customer service.

Practical Steps for Compliance and Security Measures

GDPR compliance can be a complex task for companies, especially when integrating communication tools like WhatsApp into their operations. Here are practical steps to ensure your company maintains high data protection standards when using WhatsApp:

1. Obtain users' explicit consent

• Implement clear and straightforward opt-in forms that make it obvious what users are consenting to.
• Use double opt-in methods to verify users' intent by sending a confirmation email or message.
• Provide detailed information in consent forms about how data is used, stored, and shared. 

2. Handle Data Processing Agreements (DPAs) effectively

1. Identify all third-party providers and partners involved in data processing.
2. Create comprehensive DPAs that include clauses on data protection responsibilities, breach notifications, and data deletion protocols.
3. Keep an organized record of all signed agreements so you can easily review and audit them.

3. Conduct regular compliance audits

• Schedule regular internal audits to review data processing procedures and identify any compliance gaps.
• Bring in external auditors for an unbiased assessment of your GDPR practices.
• Document the findings and implement corrective measures promptly.
• Keep audit logs for future reference and regulatory inspections.

4. Implement encryption protocols

1. Encrypt sensitive data both at rest and in transit using up-to-date encryption standards such as AES-256.
2. Use end-to-end encryption for customer communication to protect confidentiality.
3. Regularly update encryption keys and manage them securely in a key management system (KMS).

5. Ensure secure data storage

• Store personal data in secure, access-controlled environments such as encrypted databases or cloud services that meet GDPR standards.
• Implement role-based access controls (RBAC) to restrict data access to authorized individuals.
• Perform regular secure data backups and ensure the backups are also encrypted and stored separately from primary systems.

6. Regularly review and update security measures

• Stay informed about new security threats and emerging technologies by subscribing to industry alerts and updates.
• Conduct regular penetration tests to identify vulnerabilities in your network and applications.
• Update security software, including antivirus programs, firewalls, and intrusion detection systems (IDS), to the latest versions.

Strategies for Compliant Customer Communication

Communicating your privacy policies transparently and providing regular updates on changes are essential to maintaining customer trust and demonstrating your commitment to GDPR compliance. Here are our tips for effective customer communication strategies when using the WhatsApp Business API:

• Communicate your privacy policies clearly: Companies should ensure their privacy policies are easily accessible and communicated to customers. This can be achieved by linking the policies in customer communications, displaying them prominently on the website, and including them in app interfaces.
• Regularly inform customers about policy changes: It is important to inform customers about any changes to privacy policies. Regular updates can be provided via newsletters, in-app notifications, or website announcements. This practice shows your commitment to transparency and compliance.
• Provide easy-to-understand privacy notices: Privacy notices should be written in plain language and avoid legal jargon. They should clearly state what data is collected, how it is used, and what rights data subjects have. Easy-to-understand privacy notices help customers know how their data is handled.

Frequently Asked Questions About GDPR-Compliant WhatsApp Use

1. Is WhatsApp Business GDPR-compliant?
No — the WhatsApp Business App itself is not GDPR-compliant. Only using the WhatsApp Business API in combination with a certified provider can meet data protection requirements.

2. What user data does WhatsApp process?
In addition to end-to-end encrypted messages, WhatsApp also processes metadata such as IP address, device information, location, contacts, and usage times — this data is shared with Meta.

3. How can I use WhatsApp in my company in a privacy-compliant way?
Only via the WhatsApp Business API, integrated through an EU-certified Business Solution Provider. In addition, customers' explicit consent is required.

4. Which companies use WhatsApp in a GDPR-compliant way?
One example is KLM Royal Dutch Airlines: The company uses the Business API with explicit opt-in, data minimization, and certified partners from the EU

Conclusion

WhatsApp offers enormous potential for customer communication — but without clear data protection measures, GDPR violations and high fines loom. The WhatsApp Business App is not suitable for companies, as it fails to meet fundamental requirements.

If you want to use WhatsApp in a GDPR-compliant way, there is no way around the Business API combined with a certified EU Business Solution Provider. Complemented by clear consents, DPAs, and technical safeguards, you can communicate with your customers securely, efficiently, and in full compliance.

With heyData's Vendor Risk Management  solution, you can find out in just a few steps whether your company is on solid legal footing. Book a demo today to make sure your business communication stays secure and compliant.