GDPR is one of the most powerful influential sources in the modern world of data protection since its implementation in May 2018. Being the regulation that is oriented towards the protection of privacy and individual data of citizens of the EU, it is necessary for businesses around the globe to adhere to it strictly. It is important for any organization that processes the data of EU subjects to know the fines and penalties for non-compliance.
This article will then discuss the typical elements of GDPR fines as well as how organizations can properly manage these guidelines and incorporate tools like CLM software, contract lifecycle management tool for improved data management plans.
Why GDPR Matters
The regulation or the General Data Protection Regulation has set very high bar when it comes to data protection that makes businesses reconsider the way they handle data. While compliance may be thought of as a way to avoid sanctions, it is also a way of gaining the customers’ trust. Thus, proper protection of personal data can create trust and improve the company’s image.
The Scope of GDPR
GDPR was designed to affect companies that process user’s personal data that are of EU citizens regardless of the location of the company processing that data. This vast extent implies that even organizations in other parts of the world are required to adhere to the regulation provided they deal with personal information belonging to the EU residents. The information considered personal under the GDPR includes the names, mail addresses, I.P addresses, among others.
Types of GDPR Fines
GDPR outlines two tiers of fines based on the severity of the breach
- Lower Level Fines: Up to 10 million EUR, or 2 percent of the company’s worldwide annual sales, whichever is larger. These fines pertain to issues of record-keeping, data affecting, data protection in design and by default.
- Higher Level Fines: This budget can reach a maximum of €20 million or 4% of company’s annual global revenues whichever is the higher. These penalties are intended for more severe infringements of Data Protection legislation, namely the general Gandestic Data Protection Regulation principles of data processing, the consent conditions, data subjects’ rights, and cross-border transfers.
Factors Influencing Fines
Several factors determine the amount of the fine, including:Several factors determine the amount of the fine, including:
- Nature and Gravity of the Breach: This again goes to say that the more grave the violation, the stiffer the punitive penalty in form of a fine.
- Intentional or Negligent Character: Whether the occasion was one for strict liability or if it was a negligence case.
- Mitigation Efforts: Measures that has been taken by the company in order to contain or reduce impact.
- Previous Violations: Specifically, the fines could be higher that that of companies which did not have previous breaches.
- Cooperation with Authorities: If a company cooperates with supervisory authorities it may be given less severe fines.
- Types of Personal Data Affected: The type of information that was breached which included
Below Them Are Some of the GDPR Fines:
Several high-profile cases illustrate the significant financial impact of GDPR violations:Below are few examples of high profile fines and penalties arising out of GDPR that will give the reader an idea of the loss resulting from noncompliance of GDPR:
- Google: Since 2019, in the case of the GDPR breaches concerning the non-transparency and the invalidity of the consent to the tracking of the users for the targeted ads, the French data protection authority has fined Google with 50 million euros.
- British Airways: The UK Information Commissioner’s Office (ICO) for £20m penalty on the British Airlines in the same year 2020 for not protecting more than 400000 plus customers’ data.
- Marriott International: Another receivables derived from realized bribery proceeds that was estimated at £18 million was also released by Marriott in the same fiscal year 2020. 4 million by the ICO for data leakage that impacted approximately 339 million of the guests’ information.
Ensuring Compliance
Inability to adhere to any of the GDPR regulation principles will result in severe repercussions and dent customers’ trust in your business. Here are some key steps to ensure compliance:Below are some of the critical measures that will help in enforcing the norms:
- Data Mapping and Inventory: Look for and write down all the bits of information with regard to the company’s clientele and consumers it deals with and holds.
- Consent Management: Ensure that physical consents of people in regard to their details are well and fairly attained.
- Data Subject Rights: Implement procedures to handle the data subject requests and respond to the same including; right of access, Right to Rectification, and Right to Erasure.
- Security Measures: It is also important to make sure that the top notch in measures are put in place, which may help prevent acts of breach in regard to personal information.
- Regular Audits: Biweekly check to know the level of continued compliance of the employees and try to look for areas of noncompliance.
- Training and Awareness: Encourage GDPR and data protection to your employees to utilize the knowledge on GDPR.
Leveraging Technology for Compliance
Contract management has been made easier by the contemporary tools known as the CLM software which can ease compliance with GDPR. Such aids assist corporate houses in the proper handling of contracts, and also tracking that data protection clauses have been incorporated. The implementation of software can assist companies to enhance data protection strategies and mitigate the threat of noncompliance.
Conclusion
Consequently, fines and penalties leveled under the GDPR bring out the relevance of data protection in modern society. Organizations are obliged to follow the requirements in order for them to avoid fines along with earning customer confidence. Thus, when knowing the general idea of what GDPR is, the types of fines businesses can face, and how to avoid them, a business will be able to manage the data protection issue properly. Organizations can build upon compliance strategies by incorporating technology such as CLM software which establish a strong platform for personal data management.
