How Do GDPR Fines Work?

As our lives become increasingly digital, protecting personal data is more important than ever. The General Data Protection Regulation (GDPR) is a regulation that aims to give individuals more control over their personal data and how it is processed. Violations of the GDPR can result in significant fines, making it essential for businesses to understand how these fines work and what they can do to avoid them. In this article, we will explore how GDPR fines work, including what is considered a violation, who is subject to them, and what to do if your company receives a fine.

What is the GDPR?

The General Data Protection Regulation (GDPR) is an EU data privacy regulation that went into effect in 2018, replacing the 1995 Data Protection Directive. It is designed to protect the personal data of European Union citizens and applies to any organization that processes customer personal data, regardless of where the organization is located.

Under the GDPR, organizations must be transparent about how their data processing procedures and must obtain explicit consent from individuals before collecting or using their data. Organizations must also provide individuals, also known as data subjects, with the ability to access, rectify, and erase their personal data. Organizations must also report any personal data breaches within 72 hours of the breach occurring.

How GDPR Fines Work

Violations of GDPR could include not providing the necessary information and consent forms to their customers, not protecting customer data properly, or not responding to customer requests for access to or deletion of their personal data. Other violations may include the sale or transfer of personal data to a third party without the customer's consent or the processing of personal data for purposes other than those specified by the customer.

Keep in mind that the GDPR and its potential fines apply to any global entity processing the personal data of people located in the European Union — not just those also located in the EU. This includes businesses of any size and type, as well as public authorities, non-profits, and other organizations. Administrative fines for data protection violations can range from the higher of €10 million ($10,647,550 USD) or 2% of the organization's total worldwide annual revenue to the higher of €20 million ($21,295,100 USD) or 4% of the organization's total worldwide annual revenue. Non-compliance with the GDPR can also result in administrative sanctions, such as warnings and reprimands.

Factors that Influence the Level of GDPR Fines

The nature of the violation is one of the most important factors that will influence the level of GDPR noncompliance fines. Depending on the severity of the violation, the fines can range from a warning or reprimand to a significant financial penalty. In addition, if the company is found to have deliberately violated the GDPR, then the fines could be even higher.

The size of the company is another factor that can influence the level of GDPR administrative fines. Generally, the larger the company, the larger the fines. This is because larger companies tend to have more resources to invest in data security, and are therefore expected to comply with the GDPR more rigorously. Larger companies are also more likely to have a greater impact on the rights and freedoms of individuals if their data is misused, making their violations more serious.

Organizations that have previously been found to be in violation of GDPR regulations, or have had other data-related issues, will most likely be subject to increased administrative fines and other penalties. Companies that have exhibited a long track record of proper data protection and compliance with the GDPR will be less likely to face significant fines.

Finally, companies that demonstrate a quick and proactive response to authorities regarding data protection violations, such as immediately notifying them of any breaches, will be less likely to be subject to high fines and other penalties. Additionally, companies that actively work with authorities to ensure that their data security processes and procedures are in line with GDPR regulations may receive more lenient fines and other penalties.

What to Do if Your Company Receives a GDPR Fine

Remember that the GDPR's main goal is data protection, not arbitrary corporate punishment. If your company receives a GDPR fine, your first step will be to assess the situation. Determine the exact cause of the violation, the reasons for the fine, the size of the fine, and the timeframe for the company to comply with and/or appeal to the GDPR. An appeal would include making a formal case to the GDPR authorities that there are valid reasons to reduce or even eliminate the fine. Your appeal can be made by providing evidence of past GDPR compliance, demonstrating any mitigating circumstances that may have contributed to the breach, and demonstrating any actions taken to rectify the issue.

Lastly, remember that you also have the right to negotiate with the authorities, and potentially reduce the amount of the fine. Authorities may be willing to take into consideration any actions the company has taken to prevent further violations and to reduce the damage caused. Be prepared to provide evidence of such actions, of any steps taken to ensure the security of personal data, and of any steps taken to ensure the accuracy and completeness of personal data. Most importantly, you’ll need to demonstrate that your company is taking steps to ensure compliance with the GDPR in the future, including the implementation of appropriate policies and procedures.

Stay in Compliance with Proper Training

Regular training is one of the best methods to guarantee that your business remains in compliance with the GDPR. Article 47 of the GDPR specifies that businesses are required to provide "the appropriate data protection training to personnel having permanent or regular access to personal data.” Designated data protection officers are generally in charge of overseeing this training.

At EasyLlama, our GDPR Training Course addresses its comprehensive requirements, company regulations, and employees' duties for the protection of personal data. Our interactive knowledge checks and real-life video scenarios keep employees engaged for a better understanding and retention of what they learn in the course. Plus, it’s easy to fit our 100% online and mobile-friendly training into your team’s busy schedule with the ability to stop and start courses across devices. Learn more about our GDPR and Data Privacy courses today with a free course preview!