Obligations of Companies Within the Scope of the Personal Data Protection Law (LPPD/KVKK)

In the digitized world, data has become one of the most valuable assets for companies. Hundreds of personal data points, from customer information to employee records, are processed every day. The Law on the Protection of Personal Data No. 6698 (KVKK/LPPD) is the fundamental law regulating how this valuable asset is processed, stored, and protected. Complying with KVKK is not only a legal obligation but also a necessity for building transparency and trust with customers and business partners. Non-compliance exposes companies to serious administrative fines and the risk of reputational loss. Here are the fundamental KVKK obligations every company must know and implement.

1. Know Your Responsibilities as a Data Controller

Real or legal persons who determine the purposes and means of processing personal data and are responsible for the establishment and management of the data filing system are called “Data Controllers”. In other words, if you process the data of your customers or employees, your company is a data controller, and all obligations under KVKK bind you.

2. Fulfill the Obligation to Inform (Clarification Text)

You must be transparent towards everyone whose personal data you process (customers, employees, website visitors, etc.). As soon as you start collecting data, you must provide information via an easily accessible “Clarification Text” (Aydınlatma Metni) on the following issues:

• The identity of the data controller (your company).

• For what purpose the personal data will be processed.

• To whom and for what purpose the data may be transferred.

• The method and legal reason for collecting data.

• The rights possessed by the data subject (requesting information, deleting data, correcting data, etc.).

3. Obtain “Explicit Consent” When Necessary

If one of the legitimate reasons listed in the law for processing data (establishment of a contract, legal obligation, etc.) does not exist, you must obtain “Explicit Consent” from the data owner. Explicit consent is mandatory, especially for sending SMS/emails for marketing purposes, loyalty card programs, or processing special categories of personal data (health, association membership, etc.). Explicit consent is an approval related to a specific issue, based on information, and declared with free will. It cannot be hidden within other contracts.

4. Take Measures to Ensure Data Security

KVKK imposes an obligation on data controllers to take all necessary technical and administrative measures to protect the data they process.

• Technical Measures: Antivirus systems, firewalls, data loss prevention software, encryption, penetration tests, access authorization matrices.

• Administrative Measures: Creating KVKK compliance policies, providing regular training to employees, signing confidentiality agreements, preparing data processing inventories.

5. Register with VERBIS

VERBIS (Data Controllers Registry Information System) is a system where data controllers register publicly. Companies with an annual number of employees more than 50 or an annual financial balance sheet total of more than 100 million TL (these limits may change) or businesses whose main activity is processing special categories of personal data (hospitals, insurance companies, etc.) are required to register with VERBIS.

6. Create a Data Retention and Destruction Policy

Personal data cannot be kept forever. Data must be kept for the maximum period necessary for the purpose for which they are processed, and at the end of this period, they must be securely deleted, destroyed, or anonymized. Companies are obliged to create a “Data Retention and Destruction Policy” to manage these processes.

7. Report Data Breaches

If a data breach (cyber-attack, data leak, etc.) occurs despite all precautions, you must notify the Personal Data Protection Authority within 72 hours at the latest from the moment you learn of the situation. Additionally, you must directly notify the persons affected by the breach as soon as reasonably possible.

Conclusion KVKK compliance is a continuous responsibility that needs to be made a company culture rather than a one-time project. Criminal sanctions for non-compliance with obligations are quite heavy. Getting consultancy from a lawyer specializing in KVKK and IT law to analyze your company’s current situation, eliminate deficiencies, and minimize legal risks is one of the best investments you will make for the future of your business.