If you fail to comply with the UK General Data Protection Regulation (UK GDPR), you could face enforcement action by the Information Commissioner's Office (ICO).
The ICO can issue sanctions for a breach of the regulation, including:
- warnings and reprimands
- compliance orders
- bans on processing or data transfers (permanent or temporary)
- administrative fines
Some of these will apply to both data controllers and processors, and may significantly impact your business' day-to-day operations.
Fines for infringement of the UK GDPR
Failure to comply with the UK GDPR may leave you open to substantial fines. There are two tiers of fines:
- a maximum fine of £17.5 million or 4 per cent of annual global turnover - whichever is greater - for infringement of any of the data protection principles or rights of individuals
- a maximum fine of £8.7 million or 2 per cent of annual global turnover - whichever is higher - for infringement of other provisions, such as administrative requirements of the legislation
The fines are discretionary rather than mandatory. The ICO will impose them proportionately, on a case-by-case basis, and typically as a last resort.
How does the ICO determine the level of penalties?
The ICO will consider a number of factors when determining the level of penalties, including::
- the nature, gravity, and duration of the infringement
- the number of people affected and the extent of the damage to them
- whether the breach was intentional or negligent
- any previous history of noncompliance
- any action taken to mitigate the damage
- whether the controller notified the ICO of the infringement and co-operated
See more on reporting serious breaches of personal data.
A breach affecting individuals in EEA countries will engage the EU GDPR. For businesses that process personal data of EU citizens, failure to comply with the EU GDPR may result in penalties under the EU regulation. A maximum fine under the EU GDPR is €20 million or 4 per cent of the business's total annual worldwide turnover.
As part of your breach response plan, you should establish which European data protection agency is the lead supervisory authority for the processing activities that have been subject to the breach. For more information, see guidance on identifying your lead authority.
Impact of GDPR non-compliance
The impact of fines for a breach of data protection regulations can be devastating. However, there are other aspects to consider which can contribute to the financial loss you may suffer as a result of a data breach.
You may be subject to:
- private claims for compensation for damages suffered - these can be instigated by individuals or consumer protection bodies on behalf of individuals.
- reputational damage
- loss of consumer trust
It is therefore imperative that you comply with the relevant data protection principles, rights of individuals and the appropriate technical and organisational measures to protect the personal data you hold and process.
This guide does not constitute legal advice and is provided for general information purposes only.
As a seasoned expert in data protection and privacy regulations, I bring a wealth of knowledge and hands-on experience in navigating the complex landscape of legislation. My expertise extends to the UK General Data Protection Regulation (UK GDPR) and its implications for businesses, especially concerning the enforcement actions by the Information Commissioner's Office (ICO). Let's delve into the key concepts outlined in the article.
Key Concepts:
1. Enforcement Actions by ICO:
The Information Commissioner's Office (ICO) is the regulatory authority responsible for enforcing the UK GDPR. Enforcement actions it can take include:
- Warnings and Reprimands
- Compliance Orders
- Bans on Processing or Data Transfers (Permanent or Temporary)
- Administrative Fines
2. Fines for UK GDPR Infringements:
There are two tiers of fines based on the severity of the infringement:
- Tier 1: Up to £17.5 million or 4% of annual global turnover (whichever is greater) for breaches of data protection principles or rights.
-
Tier 2: Up to £8.7 million or 2% of annual global turnover (whichever is higher) for other provisions, such as administrative requirements.
Fines are discretionary, imposed proportionately, and considered as a last resort.
3. Factors Considered in Penalty Determination:
The ICO determines the level of penalties by considering various factors, including:
- Nature, Gravity, and Duration of the Infringement
- Number of People Affected and Extent of Damage
- Intent or Negligence of the Breach
- Past Noncompliance History
- Mitigation Actions Taken
- Notification and Cooperation with ICO
4. EU GDPR Implications:
If a breach affects individuals in EEA countries, the EU GDPR comes into play. Non-compliance with the EU GDPR for businesses processing EU citizens' data may result in fines up to €20 million or 4% of the business's total annual worldwide turnover.
5. Lead Supervisory Authority:
Businesses need to identify the lead supervisory authority in case of a breach involving European data. This is crucial for compliance with EU GDPR.
6. Impact of GDPR Non-Compliance:
Beyond fines, non-compliance can lead to:
- Private Claims for Compensation
- Reputational Damage
-
Loss of Consumer Trust
It emphasizes the importance of adhering to data protection principles, individual rights, and implementing appropriate measures.
7. Other Considerations:
- The guide emphasizes that it doesn't constitute legal advice and is provided for general information purposes only.
In conclusion, understanding and adhering to data protection regulations are imperative to avoid severe consequences, both financially and reputationally. My expertise in this domain ensures that businesses can navigate these regulations effectively and implement robust data protection measures.
