How to Use WhatsApp for Business While Staying GDPR Compliant

However, despite its popularity, WhatsApp has faced significant challenges concerning compliance with data protection regulations.

In 2021, the international messaging app owned by Meta (formerly Facebook) was fined €225 million by Ireland’s data watchdog for breaching privacy regulations. This fine was the largest ever imposed by the Irish Data Protection Commission and the second-highest under the new EU GDPR rules.

The investigation into WhatsApp's compliance issues began in 2018, focusing on whether the company was transparent enough about how it handled user information. Regulators found that WhatsApp’s privacy policies lacked clarity, particularly regarding data storage and processing. This lack of transparency led to significant concerns, especially given WhatsApp's dual use for personal and professional communication. Lawyers and data protection experts often advise against using WhatsApp for business communication due to these deficiencies.

Related Blogs:  Data Processing Agreements (DPAs) – heyData creates transparency

GDPR Requirements for Using WhatsApp

To use WhatsApp in a GDPR-compliant manner, businesses need to adhere to several key principles:

• Data Minimization: Only collect data that is necessary for the specific purpose.
• Purpose Limitation: Use data solely for the purposes explicitly stated at the time of collection.
• Consent: Obtain explicit consent from users before processing their data.
• Data Subject Rights: Ensure users can exercise their rights to access, rectify, and delete their data.

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

The situation, however, is different for unencrypted metadata that is generated during cloud communication. In simple terms, metadata is data about data. It includes information such as:

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

While metadata doesn't show the actual content of conversations, it can still build a pretty 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 help maintain and secure their service.

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

Under GDPR, processing personal (meta) data requires explicit user consent. This is usually managed through a data processing agreement (DPA), which outlines how your company and WhatsApp handle data. However, the personal WhatsApp app doesn't support DPAs. So, to use WhatsApp for business, in theory, you'd need to get consent from each customer and prospect individually.

So how can your company overcome this obstacle?

Besides its regular app for personal use, WhatsApp provides two business options: the Whatsapp Business App and the Whatsapp Business API, also known as the Whatsapp Business Platform. While 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, whereas the Business Platform is suitable for larger, professional sales and marketing teams.

However, despite having end-to-end encryption, the WhatsApp Business app is not GDPR compliant and should not be used for corporate communications. Four main issues may conflict with data protection laws:

1. WhatsApp processes metadata relevant to 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 only business contacts.
3. WhatsApp stores backups unencrypted by default. You can encrypt backups in the app settings.
4. WhatsApp caches undelivered messages on its servers, which cannot be prevented.

This leaves us with the WhatsApp Business Platform, the universally recommended solution for business users. It is a paid service designed for medium to large businesses. The API allows you to send messages via WhatsApp without WhatsApp processing personal data or storing messages on its servers. Therefore, GDPR compliance depends on the company integrating the API, not on WhatsApp.

However, WhatsApp doesn’t provide an app for using APIs. Instead, businesses need to use external customer messaging software and connect it to WhatsApp’s interface to send messages and communicate with customers. As such, the API works as a backend system that integrates with CRM tools, helpdesk software, and other messaging platforms to help businesses manage customer communications efficiently.

These external messaging tools are called Business Solution Providers (BSPs) and are specially certified by WhatsApp. You can find a list of WhatsApp Business Solution Providers on the Meta website. It’s important to choose a BSP based in the EU or EEA, or one with certified server infrastructure in these regions, and ensure they can delete all data and communication with individual customers upon request.

Real-Life Example: KLM Royal Dutch Airlines

KLM Royal Dutch Airlines is a prime example of a company leveraging the WhatsApp Business API while adhering to GDPR regulations. 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 ensures that customers opt-in to receive communications via WhatsApp. This is done through clear consent forms during the booking process.
• Data Minimization: Only necessary customer data is collected and processed, strictly for the purpose of communication regarding their bookings and flights.
• Using Certified BSPs: KLM partners with EU-based Business Solution Providers (BSPs) certified by WhatsApp, ensuring that all data handling complies with GDPR standards.
• Ensuring Data Subject Rights: Customers can request access to their data, make corrections, or demand deletion, and KLM has established processes to handle these requests efficiently.

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

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

1. Obtain explicit consent from users

• Implement clear and straightforward opt-in forms that outline what users are consenting to.
• Use double opt-in methods to verify user intent, sending a confirmation email or message.
• Provide detailed information about data usage, storage, and sharing practices within the consent forms. 

2. Manage data processing agreements (DPAs) effectively

• Identify all third-party vendors and partners involved in data processing.
• Draft comprehensive DPAs that include clauses on data protection responsibilities, breach notifications, and data deletion protocols.
• Maintain an organized repository of all signed agreements for easy access and review.

3. Conduct regular compliance audits

• Schedule periodic internal audits to review data handling processes and identify any compliance gaps.
• Use external auditors for unbiased assessments of your GDPR practices.
• Document findings and implement corrective actions promptly.
• Keep audit trails organized for future reference and regulatory inspections.

4. Implement encryption protocols

• Encrypt sensitive data both at rest and in transit using up-to-date encryption standards like AES-256.
• Deploy end-to-end encryption for communications with clients to protect confidentiality.
• Regularly update encryption keys and manage them securely within a key management system (KMS).

5. Ensure secure data storage practices

• Store personal data in secure, access-controlled environments such as encrypted databases or cloud services that comply with GDPR standards.
• Implement role-based access controls (RBAC) to limit data access to authorized personnel only.
• Regularly back up data securely, ensuring 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.
• Perform regular penetration testing to identify vulnerabilities in your network and applications.
• Update security software, including antivirus programs, firewalls, and intrusion detection systems (IDS), to their latest versions.

Transparent communication of data protection policies and regular updates on any changes are essential to maintain customer trust and demonstrate a commitment to GDPR compliance. Here are our tips to establish effective customer communication strategies while using Whatsapp Business API:

• Clearly communicate your data protection policies: Businesses should ensure that their data protection policies are easily accessible and communicated to customers. This can be achieved by linking the policies in customer communications, displaying them prominently on websites, and including them in app interfaces.
• Regularly update customers on policy changes: Keeping customers informed about any changes to data protection policies is crucial. Regular updates can be sent through newsletters, in-app notifications, or website announcements. This practice demonstrates a commitment to transparency and compliance.
• Provide easy-to-understand privacy notices: Privacy notices should be written in plain language, avoiding legal jargon. They should clearly outline what data is collected, how it is used, and the rights of the data subjects. Easy-to-understand privacy notices help ensure that customers are fully aware of how their information is handled.

In conclusion, while WhatsApp's popularity and extensive reach make it an attractive tool for business communication, ensuring GDPR compliance is crucial. The platform's history of compliance issues underscores the importance of using WhatsApp Business solutions carefully. For businesses, the WhatsApp Business API stands out as the most secure and GDPR-compliant option, provided it is integrated with a certified Business Solution Provider.

By following practical steps for compliance and security measures, businesses can maintain high standards of data protection. Additionally, employing effective customer communication strategies ensures transparency and builds trust with your customers.

With heyData’s Vendor Risk Management solution, we can quickly and reliably evaluate your selected services and providers for GDPR compliance. At a glance,  we can show you all the information you need to immediately assess the security standards and possible data protection risks. Book a demo today to ensure your business communications remain secure and compliant.