The General Data Protection Regulation (GDPR) is a regulation implemented by the European Union (EU) to protect the privacy and personal data of its citizens. This regulation applies to all businesses operating within the EU, regardless of their size or location. In order to ensure compliance with GDPR, the EU has introduced several penalties for companies that breach the regulations. In this article, we will explore some of the most common examples of penalties for GDPR breach.
Monetary Fines
One of the most common penalties for GDPR breach is monetary fines. These fines can range from a few thousand euros to millions, depending on the severity of the breach. The amount of the fine is determined by several factors, including the size of the company, the nature of the breach, and the degree of harm caused to the affected individuals.
For example, a company that fails to properly protect the personal data of its customers could face a fine of up to 4% of its annual global revenue or 20 million euros, whichever is greater. Similarly, a company that intentionally breaches GDPR regulations could face a fine of up to 4% of its annual global revenue or 20 million euros, whichever is greater.
GDPR breach penalty examples
Here are some of the examples of penalties that have been imposed for GDPR breaches.
1. Google Fined 50 Million Euros for GDPR Violation
In January 2019, the French Data Protection Authority (CNIL) fined Google 50 million euros for a violation of the GDPR. Google was found to have failed to provide adequate information to users about its data collection practices, and the company was also found to be using personal data for advertising purposes without obtaining explicit consent.
2. Marriott International Fined for Data Breach
In January 2019, the UK Information Commissioner’s Office (ICO) fined Marriott International £18.4 million for a data breach that occurred in 2014. The data breach, which was caused by a hacker accessing the Starwood guest reservation database, exposed the personal data of approximately 339 million guests.
3. British Airways Fined for Data Breach
In July 2019, the ICO fined British Airways £183 million for a data breach that occurred in 2018. The data breach was caused by a vulnerability in the company’s website and affected approximately 500,000 customers. The ICO found that British Airways failed to take appropriate measures to protect customer data, including failing to implement proper security measures.
4. Facebook Fined 2.8 Million Euros for GDPR Violation
In December 2018, the Spanish Data Protection Authority fined Facebook 2.8 million euros for violating the GDPR. The fine was imposed after the Spanish Authority found that Facebook was collecting data on Spanish users without their consent and using this data for advertising purposes.
5. Uber Fined for Data Breach
In November 2017, the UK Information Commissioner’s Office fined Uber £385,000 for a data breach that occurred in 2016. The data breach affected approximately 2.7 million UK customers, and the ICO found that Uber failed to implement appropriate security measures to protect customer data.
Reputational Damage
Another common penalty for GDPR breach is reputational damage. Companies that breach GDPR regulations risk damaging their reputation and losing the trust of their customers. This can result in a loss of business and decreased profits.
For example, if a company is found to have breached GDPR regulations by failing to properly protect the personal data of its customers, it may experience a significant drop in customer trust and a corresponding decrease in sales. In order to prevent this, companies must take steps to ensure that their privacy and data protection practices are in line with GDPR regulations.
Legal Action
In some cases, individuals affected by GDPR breaches may choose to take legal action against the company responsible for the breach. This can result in costly lawsuits and legal fees for the company.
For example, if a company is found to have breached GDPR regulations by selling the personal data of its customers to third-party companies, affected individuals may choose to take legal action against the company. In such cases, the company could be liable for damages resulting from the breach, including costs associated with identity theft, credit monitoring, and other related expenses.
Conclusion
The General Data Protection Regulation (GDPR) is a important regulation that was implemented by the European Union (EU) to protect the privacy and personal data of its citizens. Companies that breach GDPR regulations face a range of penalties, including monetary fines, reputational damage, and legal action. To avoid these penalties, companies must ensure that their privacy and data protection practices are in line with GDPR regulations. By taking these steps, companies can protect their reputation, maintain customer trust, and avoid costly penalties and legal fees.