When Does a Business Legally Need a DPO?
Written by Data Protection People
To stay GDPR compliant, your organisation needs a DPO when it carries out certain data activities.
A business is legally required to appoint a Data Protection Officer (DPO) when its activities meet specific UK GDPR criteria. This includes large-scale monitoring, processing special category data or operating as a public body.
TL;DR
- Businesses need a DPO when its data activities reach a certain level of scale or sensitivity.
- Public authorities must appoint a DPO.
- DPO as a Service offers external expertise without the cost of hiring internally.
- Choosing the right provider depends on experience, industry knowledge and service levels.
Who Needs to Appoint a Data Protection Officer?
Certain types of organisations, and organisations carrying out specific activities, are required to appoint a DPO under GDPR.
Organisations that require a DPO, whether a controller or a processor, typically include:
- Public authorities and government bodies
- Businesses carrying out regular and systematic monitoring of individuals at scale
- Organisations processing large amounts of special category data, such as:
- Health records
- Criminal offence records
- Biometric information
For instance, healthcare providers, insurance companies and large HR platforms will usually need to appoint a data protection officer.
If you’re not legally required to appoint a DPO, but choose to appoint one voluntarily, the position still has the same responsibilities and tasks as a mandatory appointment.
When Does Having a DPO Become a Legal Requirement?
A DPO becomes legally required when your organisation’s data activities create higher compliance responsibilities – not necessarily company size.
GDPR doesn’t define the numbers around ‘large-scale processing’, but it considers:
- Volume of records
- Number of individuals affected
- Geographic scope
- Duration of monitoring
We would recommend consulting with a data protection expert if you’re unsure.
| Activity | DPO required? | Example |
| Small business storing customer emails | Usually no | Local gift shop |
| Large-scale health data processing | Yes | Private clinic |
| Employee CCTV monitoring across sites | Potentially | National employer |
How Do I Choose the Right DPO Service Provider?
The right DPO service provider combines GDPR expertise, independence and practical business support.
What to look for:
- Check their sector experience. Have they worked with similar businesses to yours? Ask if they have references from their clients.
- Confirm their independence and impartiality. They should be able to advise and oversee compliance without being influenced by any of your internal decision-makers.
- Review what services are included for the cost. For instance, if you require a high level of practical support, make sure that the support they offer meets your requirements.
- What level of support are they offering? Do they offer support during incidents or regulatory enquiries?
How Does DPO as a Service Differ From Hiring an In-House DPO?
Using an outsourced DPO service gives you access to broader expertise, guaranteed independence and better scalability. It is also usually more cost-effective to outsource to an external DPO than it is to hire one in-house.
However, an in-house DPO may be more readily available and have a deeper understanding of your company’s internal processes from the get-go.
Get Your Expert DPO with Data Protection People
At Data Protection People, we offer a range of DPO services designed to suit your needs. Our expert Data Protection Officers will provide you with everything you need to get GDPR compliant. Get in touch today.
FAQs
What happens if a business needs a DPO but doesn’t appoint one?
If a business fails to appoint a DPO when it’s legally required to do so, the organisation could face regulatory scrutiny, compliance issues and potential fines.
Can small businesses benefit from having an outsourced DPO?
Yes. Small organisations may not legally require one, but can still use outsourced DPO services for risk reduction – and can set them up well if their businesses grow.
Is DPO as a service suitable for growing businesses?
Yes. It works well for scaling operations or increasing sensitive data processing.