GDPR fines are designed to make non-compliance a costly mistake for both large and small businesses. In this article we’ll talk about how much is the GDPR fine and how regulators determine the figure. Show
The European Union’s General Data Protection Regulation (GDPR) was designed to apply to all types of businesses, from multi-nationals down to micro-enterprises. The fines imposed by the GDPR under Article 83 are flexible and scale with the firm. Any organization that is not GDPR compliant, regardless of its size, faces a significant liability. Below we will look at the administrative fine structure, how fines are assessed, and which infringements can incur penalties. This is not a guide on how to avoid GDPR fines (you can find our GDPR compliance checklist here). Rather it’s a brief primer on the financial exposure organizations face for non-compliance. Two tiers of GDPR finesThe GDPR states explicitly that some violations are more severe than others. The less severe infringements could result in a fine of up to €10 million, or 2% of the firm’s worldwide annual revenue from the preceding financial year, whichever amount is higher. They include any violation of the articles governing:
The more serious infringements go against the very principles of the right to privacy and the right to be forgotten that are at the heart of the GDPR. These types of infringements could result in a fine of up to €20 million, or 4% of the firm’s worldwide annual revenue from the preceding financial year, whichever amount is higher. These include any violations of the articles governing:
They also include:
And these are just the administrative fines. Article 82 gives data subjects the right to seek compensation from organizations that cause them material or non-material damage as a result of a GDPR infringement. How much is a GDPR fine?Under the GDPR, fines are administered by the data protection regulator in each EU country. That authority will determine whether an infringement has occurred and the severity of the penalty. They will use the following 10 criteria to determine whether a fine will be assessed and in what amount:
If regulators determine an organization has multiple GDPR violations, it will only be penalized for the most severe one, provided all the infringements are part of the same processing operation. Data controller’s responsibilityMany companies use third parties, like email or cloud storage services, to handle their data. While this can be helpful in adhering to the GDPR if the third party has a higher technological capacity, it does not absolve the hiring organization (i.e. the controller) from ensuring that personal data is processed in accordance with the GDPR. Unless the controller can clearly demonstrate that it was “not in any way responsible for the event giving rise to the damage,” it will be fully liable for any infringement caused by a non-compliant third party. For this reason, it’s important to carefully vet any third party services you use to make sure they have a good track record for security. ConclusionThe GDPR’s stiff fines are aimed at ensuring best practices for data security are too costly not to adopt. While it remains to be seen how fines will be applied by different EU member states, these fines loom for any organization not making strides to ensure GDPR compliance. What are the consequences of not being compliant with HIPAA?Failure to comply with HIPAA can also result in civil and criminal penalties. If a complaint describes an action that could be a violation of the criminal provision of HIPAA, OCR may refer the complaint to the Department of Justice (DOJ) for investigation.
Which of the following imposes penalties for violations of the HIPAA privacy Rule?Penalties for HIPAA violations can be issued by the Department of Health and Human Services' Office for Civil Rights (OCR) and state attorneys general.
Which type of penalties can a covered entity face for violating HIPAA?Tier 1: Wrongful disclosure of PHI
The DOJ doesn't acknowledge ignorance of HIPAA regulations as an excuse for violating HIPAA rules because all covered entities are responsible for compliance. Maximum penalty: Up to $50,000, up to one year in prison, or both.
What is the most common HIPAA violation?Failing to Secure and Encrypt Data
Perhaps the most common of all HIPAA violations is the failure to properly secure and encrypt data. In part, this is because there are so many different ways for this to happen.
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