The Italian Data Protection Authority (Garante) imposed two fines totaling €11.5 million on Eni Gas and Luce. GDPR fines: €114m so far, but far more expected. It also shows that nearly one year after the GDPR became the law of the land, we are still in the early days of enforcement. no fines imposed under (1) national / non-European laws, (2) non-data protection laws (e.g. The severity of the fine was compounded by the firm’s track record as Deutsche Wohnen SE had already faced compliance issues in 2017. , research data shows that over 200,000 cases of GDPR non-compliance have been lodged since this law came into effect. Lucy Ingham 20th January 2020 (Last Updated January 20th, 2020 10:56) Share Article. It's not quite clear in what circumstances maximum fines will be handed down yet, but the financial ramifications could be significant. Fines. The €3 million fine was imposed because the company activated unsolicited contracts, some of which may have included forged signatures. Prior to joining ProtonVPN, Richie spent several years working on tech solutions in the developing world. Part of this is to be expected. According to the report, the total of the fines issued under the GDPR totaled €55,955,871—but almost 90 percent of this amount is due to one fine, the €50 million fine Google received from CNIL, the French data protection agency. Wind Tre S.p.A. The European Data Protection Board (EDPB) released a preliminary report stating that of the 206,326 cases reported under the GDPR across the 31 countries in the European Economic Area (EEA), the national DPAs have only resolved only 52 percent of them. And Article 83 certainly got businesses’ attention with its two-tiered fine structure; relatively minor infringements are “subject to administrative fines up to €10 million, or in the case of an undertaking, up to 2 percent of the total worldwide annual turnover of the preceding financial year, whichever is higher” while more serious infractions are “subject to administrative fines up to €20 million, or in the case of an undertaking, up to 4 percent of the total worldwide annual turnover of the preceding financial year, whichever is higher.”. If you continue to use this site we will assume that you are happy with it. Lessons and precedents for future GDPR fines. Updated: Largest fine so far under new European privacy regulations. Given how reliant many companies are on processing their users’ personal data (and how big some of these companies are), to get these companies to comply with GDPR regulations meant the data protection agencies had to have serious teeth to punish infractions. Additionally, it should also have done more to safeguard its systems. How are GDPR fines working in practice? We use cookies to ensure that we give you the best experience on our website. © 2020 Proton Technologies AG. The europa.eu webpage concerning GDPR can be found here. 1. (The GDPR does specify 10 criteria DPAs must use to calculate GDPR fines.). GDPR.eu is co-funded by the Horizon 2020 Framework Programme of the European Union and operated by Proton Technologies AG. In July 2020, Garante fined over €16.7 million (US$ 21.8675 million) on Wind Tre, a … Google+. On their part, authorities have also shown their commitment to upholding the GDPR with some of the biggest companies receiving hefty fines for their data protection violations. Through this dubious site, data belonging to around 500,000 consumers was harvested by the hackers. GDPR has proven to be the most comprehensive and far-reaching regulatory scheme, so far, that offers the most detailed framework for ensuring that businesses act responsibly in obtaining and using personal data. these requirements were deemed insufficient for authentication and protection of consumer information as required by article 32 of the GDPR. Failing to share the contact details of the company’s Data Protection Officer (DPO) or to adequately record the responsibilities of processors or joint controllers both qualify as Category I violations. Biggest GDPR Non-Compliance Penalties (So Far) | Spirion. Knuddels immediately took steps to resolve the situation (in German), including informing its users of the breach, temporarily deactivating the affected accounts, reporting the breach to the German data protection agency (the LfDI), and taking steps to improve the security of its platform. As regulators work through this backlog, businesses can expect more fines of greater amounts. This is not an official EU Commission or Government resource. The Dutch framework (in Dutch) has four categories of violations, and each category has a defined “default” fine, along with a range of possible fines depending on the severity of the violation. Notification; Whether an infringement was proactively reported or is another core criterion used in the determination of a GDPR fine. GDPR regulators also examine whether the affected company adhered to the statutory codes of conduct or is qualified under appropriate certifications, In some instances, authorities may apply relevant criteria apart from the ones listed above such as the financial impact the company experienced as a result of the violation, Be proactive and avoid GDPR fines by booking a, Get your Frequently Asked Questions (FAQ) about GDPR answered with our detailed, Download your GDPR and ePrivacy Regulation, Secure Privacy: GDPR, CCPA & Privacy Compliance for websites. By Alex Guillen 05 June 2019 Even with regulators prepared to fine, there are still plenty of lessons to be learnt. Violators of GDPR may be fined up to €20 million, or up to 4% of the annual worldwide … Please note that we only list GDPR fines, i.e. The first year: What can organisations learn from GDPR fines so far? Furthermore, the EU’s Advocate General has now linked the GDPR’s definition of consent, which requires an unambiguous affirmative action, to the ePrivacy Directive. After a Slow Start, GDPR Non-Compliance Penalties are Now “On Fire” Part 2 in a 3-part series on preparing for data privacy breaches. While the EDPB report does not specify how many fines have been issued, by using the 91 fines described in the DLA Piper survey released in February and removing the Google outlier, we can calculate that the average GDPR fine a company faced was approximately €66,000. An EDBP report covering the first nine months after the GDPR took effect reveals that regulators in 11 European countries imposed more than 56 million euros in fines. They apply to the unlawful processing of special categories of data (such as the national identification number), illegal profiling, or refusing to comply with specific directives from the Dutch DPA. Look for more countries to follow the Netherlands’ lead. https://www.dandodiary.com/.../guest-post-can-first-gdpr-fines-tell-us https://www.cmswire.com/.../what-we-can-learn-from-the-gdprs-first-fines Most of this amount comes from a single sanction — the massive €50 million fine imposed on Google by the French data protection authority. €50 million fine Google received from CNIL, said they are coordinating with both the Dutch and Norwegian DPAs, the penalties for violating the ePrivacy Directive at £500,000, Art. GDPR: Google hit with €50 million fine by French data protection watchdog. At the beginning of December 2019, 1&1 Telecommunications was fined 9.5 million Euros by Germany’s Federal Commissioner for Data Protection and Freedom of Information (BfDI). The ICO now has the power to impose a fine of up to €20million or four percent of global turnover, whichever is greater. No company wants to pay a GDPR fine. Category IV violations are the most severe. In another GDPR penalty involving a British firm, the Information Commissioner’s Office (ICO) fined Marriot after the international hotel chain after a hack dating back to 2014 was discovered at the tail end of 2018. However, according to the EDPB’s opinion, certain data processing activities, like using cookies for behavioral advertising, fall under the material scope of both the GDPR and the ePrivacy Directive. According to the ICO, the incident is believed to have started in June 2018 and different categories of personal information were compromised as a result of negligent arrangements at the company. After investigations were concluded, the ICO found that Marriott failed to perform adequate due diligence when it bought Starwood. Such infringements can cost up to 20 million Euros or 4% of the company’s global revenue, whichever is higher. To avoid this type of fine, companies are required to institute an enhanced level of security, show cooperation with authorities, carry out a DPIA, and possibly recruit a Data Protection Officer (DPO). While Article 83 was effective at grabbing headlines (a fine of 2 percent or 4 percent of global annual revenue will get any business’s attention) it gave very little concrete guidance as to how a data protection agency should calculate the amount of a fine. Penalties under the GDPR fall into two broad categories: companies can incur fines of up to 10 million Euros or 2% of the previous year’s global revenue, whichever value is greater, for such violations. The biggest data breach fines, penalties and settlements so far Hacks and data thefts, enabled by weak security, cover-ups or avoidable mistakes have cost these companies a … 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: © Secure Privacy 2020. Your email address will not be published. European data regulators have now issued fines totalling €114m (£97m) under GDPR, but there are far more to come, according to a report published today. Certification; GDPR regulators also examine whether the affected company adhered to the statutory codes of conduct or is qualified under appropriate certifications, Other; In some instances, authorities may apply relevant criteria apart from the ones listed above such as the financial impact the company experienced as a result of the violation. Privacy Policy. While the amount of an ePrivacy fine can vary from nation to nation, they are almost always less than the maximum allowed GDPR fine. Whether an infringement was proactively reported or is another core criterion used in the determination of a GDPR fine. The purpose of the EU’s General Data Protection Regulation was to give everyday EU citizens greater control over how their personal data is collected and used. The following statistics show how many fines and what sum of fines have been imposed per month so far. Where there have been other fines (in Germany and Portugal), the amount of those fines has been considerably lower. According to the BfDI, the fine was enforced after it was discovered that callers to the firm’s call center could retrieve consumer data by simply providing their name and date of birth. Category II refers to when a company does not fulfill specific GDPR requirements regarding data processing. The EDPB, which is made up of regulators from across the EEA, released its preliminary report examining the first nine months of the implementation of the GDPR. LinkedIn . The Biggest GDPR Fines So Far British Airways (204.6M Euros) The UK’s Information Commissioner’s Office (ICO) announced its plan to fine the Airline after users of British Airways’ website were diverted to a fraudulent site. Instead, Google was fined by the French regulator for failing to make their consumer data processing statements easily accessible to users and employing obscure language. GDPR fines: €114m so far, but far more expected. The Dutch data protection agency, the Autoriteit Persoonsgegevens, released the framework it will use to determine how severe a fine will be. GDPR: 160,000 breaches Reported & €114m Fines Applied so far. All Rights Reserved. This ruling provides an important precedent on how the data processing industry scrapes and uses public data. 83 GDPR - General conditions for imposing administrative fines, 59,000 breaches reported in first eight months of new GPDR requirements. ALL POSTS. In response, the LfDI issued a fine of €20,000, saying it was a proportionate punishment and citing the company’s “exemplary cooperation” and transparency as the reason it did not deliver a more severe punishment. Furthermore, research data shows that over 200,000 cases of GDPR non-compliance have been lodged since this law came into effect. For example, Google's parent company Alphabet posted its first $100 billion (£79 billion) year in 2017. Lesson 1: Expect more GDPR fines in 2019 The Polish data protection agency, known as the UODO, only issued its first GDPR fine on March 26, a €220,000 fine to an unnamed firm. Twitter. The German court’s decision to drastically reduce the GDPR fine is noteworthy from a legal and compliance standpoint as it … Both represented 1.5% of the companies’ global annual turnover, but the ICO could have opted to issue a fine of up to 4% of the same. GDPR compliance is easier with encrypted email. Get your Frequently Asked Questions (FAQ) about GDPR answered with our detailed summary, Download your GDPR and ePrivacy Regulation e-book directly into your inbox now, On September 13, 2019, California’s legislature ratified Assembly Bill 25 (AB-25), which is expected to…, The final version of the General Data Protection Law (LGPD), was ratified by the Brazilian…. H&M also issued a press statement on their official website expressing their cooperation with the Data Protection Authority so far and stated: “H&M Group wants to emphasize its commitment to GDPR compliance and reassure its customers and employees that the company takes privacy and the protection of all personal data as top priority. At the beginning of 2019, the Austrian Data Protection Authority announced that it had enforced a fine on the country’s Post for illegally selling consumer data in violation of GDPR requirements. GDPR scholars will note that the Category I and II violations do not correspond with those that are punishable by the lower tier GDPR fines (€10 million or 2 percent of global annual turnover), nor do Category III and IV violations only correspond with those that are punishable by the upper tier of GDPR fines (€20 million or 4 percent of global annual turnover). The company was fined for violating Article 25 and Article 5 of the GDPR whereby the company lacked legitimate reasons to hold sensitive consumer data longer than necessary. The following statistics show how many fines and what sum of fines have been imposed per type of GDPR violation to date. competition laws / electronic communication laws) and (3) "old" pre-GDPR-laws.. This fine is unique in the sense that it does not involve a data breach as is the case with both Marriott Hotels and British Airways. This article will examine the fines that have been assessed so far to see what lessons can be learned. Spanish data protection agency, AEPD, fined the country's top football division, La Liga, €250,000 (£215,000) for spying on people who had downloaded its app. January 20 10:29 2020 by Lucy Ingham Print This Article. Google holds the unwanted tag of being the first victim of the first biggest GDPR fine. The UK’s Information Commissioner’s Office (ICO) announced its plan to fine the Airline after users of British Airways’ website were diverted to a fraudulent site. The scope also extends to compliance with the eight data subject privileges that consumers enjoy under the GDPR. Close Submit. In October 2019, the largest GDPR fine was issued against a real estate company, Deutsche Wohnen SE by the Berlin Commissioner for Data Protection and Freedom of information. This is an important distinction, because the ePrivacy Directive is implemented through national legislation. So far there have been no fines under GDPR made by the ICO, apart from the punitive fines under the Data Protection Act 2018 for failure to pay the data protection fee. The three most notable GDPR fines so far have been: the ICO fining British Airways £183.39m; the ICO fining Marriott International £99m; and the French data protection authority (DPA), CNIL, fining Google €50 million. Your email address will not be published. GDPR fines in other parts of Europe Germany’s regulator has been the most active since GDPR was introduced, issuing over 60 fines. British Airways – €22 million ($26 million) In October, the ICO hit British Airways with a $26 million … Before examining the fines in detail, it is important to provide context on how GDPR penalties work. The GDPR was passed on May 25, 2018, but it was not until recently that companies had a clear picture of how GDPR fines would be applied. These kinds of fines encompass consent to process personal information, inclusive of consent to handle special categories of data. Required fields are marked *. By using our GDPR checklist and keeping up to date on the latest developments and interpretations of the different regulations, you can avoid costly GDPR violations. We will also look at two important documents from the EU and the Dutch DPA that contain clues about what GDPR fines will look like in the future. It establishes that these companies must at least make an effort to contact the data subjects to get their consent to use their data. The Dutch DPA also reserves the right to levy the maximum fine allowable under the GDPR if it finds this framework not proportionate to the offense. 1&1 Telecom GmbH welcomed the GDPR fine reduction in a public statement, but also said that it thought the new amount might also be too high and that it would be undergoing a detailed review of the decision. Although it is not illegal under the GDPR, the Austrian Post was also found to have processed information on package frequency and the rate of relocations for direct marketing objectives. Furthermore, this regulation has a wide reach, even outside of the European union. In fact, annual sales reached $110 billion for the company. The hack exposed sensitive personal information including credit card details, passport numbers, as well as dates of birth belonging to over 300 million clients of which 30 million were EU residents. On March 21 in the Planet49 case, the AG’s office ruled that pre-ticked boxes do not qualify as a user’s express consent for cookies, clarifying that GDPR’s strict conditions for valid consent, described in Article 4, are applicable when judging the validity of consent under the ePrivacy Directive, notably under Recital 25. GDPR's weirdest fine so far. Furthermore, when you consider that the report says that DPAs have already handled roughly 100,000 self-reported breaches and user complaints under the GDPR, it becomes clear that most DPAs are being conservative when assessing GDPR fines. However, about 30% of companies in the EU are yet to comply with GDPR, more than a year after this law came into effect. The penalty was handed out as a result of the company failing to establish adequate technical and organizational measures to safeguard consumer information in its call center environments. The headline GDPR fine so far has been the ... High fines under the GDPR have been few and far between. For example, the UK’s ICO capped the penalties for violating the ePrivacy Directive at £500,000. Moreover, it was always assumed that there would be a glut of cases at the introduction of the GDPR as businesses adapted to the new regulations. Category I applies to relatively simple or clerical violations. Together, these rulings make underline the proper way to receive a user’s consent and why their consent is so critical. Administrative fines and other penalties for non-compliance with the EU General Data Protection Regulation and Data Protection Act 2018 GDPR penalties and fines The EU GDPR (General Data Protection Regulation) sets a maximum fine of €20 million (about £18 million) or 4% of annual global turnover – whichever is greater – for infringements. The GDPR has empowered Data Subjects and DPAs to police the collection and use of personal data of EU residents more effectively. Many of these regulatory bodies spent most of 2018 staffing up, finalizing their internal procedures, and finishing up last pre-GDPR investigations. GDPR.EU is a website operated by Proton Technologies AG, which is co-funded by Project REP-791727-1 of the Horizon 2020 Framework Programme of the European Union. Be proactive and avoid GDPR fines by booking a call with us today for a complete demo of our compliance solution that will be customized to your unique business needs. According to a report by the Handelsblatt published on 18 January 2019, German DPAs had until then issued 41 fines under the GDPR. Nothing found in this portal constitutes legal advice. Regulators consider ten crucial factors to determine the severity of a GDPR fine. Furthermore. These cases have sent a strong message to companies about the importance of protecting personal data from breaches (British Airways and Marriott International), and … Lower level GDPR fines are enforced as a result of either a data breach or the failure to implement a Data Protection Impact Assessment (DPIA). On March 12, the EDPB issued an opinion that went a long way toward clarifying the interplay between the ePrivacy Directive and the GDPR. One of the first fines levied under the GDPR was against an unnamed German social media provider (later confirmed to be Knuddels.de) for a data breach that exposed 330,000 users’ email addresses in September 2018. He joined ProtonVPN to advance the rights of online privacy and freedom. All Rights Reserved. Germany – Hospital in Rheinland-Pfalz – €105,000 Facebook. The Polish data protection agency, known as the UODO, only issued its first GDPR fine on March 26, a €220,000 fine to an unnamed firm. This firm was found to have intentionally violated the GDPR when it scraped public data on some six million Polish citizens, including their names, email addresses, telephone numbers, and addresses, but only attempted to contact 90,000 data subjects to obtain their explicit consent to use their data. Additionally, Google was found guilty of not seeking consent from consumers to use their data for its ad targeting campaigns, which is illegal under the GDPR. After the General Data Protection Regulation (GDPR) came into effect in May 2018, companies operating in the EU were required to change their data processing practices or face the possibility of heavy fines for non-compliance. Marriot International Hotels – 110.3m Euros, ; authorities examine aspects such as the number of affected parties, the level of damage, and the duration of the infringement, ; in this case, investigators assess whether the violation was purposeful or an outcome of unpreparedness, ; this aspect focuses on the measures adopted to minimize the damage caused to data subjects, this context involves an evaluation of the preparedness of the affected organization to avoid GDPR violations, ; A company’s history when it comes to both the EU Directive and the GDPR is examined, ; Authorities consider the degree of cooperation exhibited by the affected company in remediating the infringement, ; Another crucial consideration in the determination of a GDPR fine is the kind of personal information involved during a violation. Investigators established that the Austrian Post had reviewed consumer information to determine whom would vote for which political party they may support and traded that data. Only thirteen fines have been issued in excess of one million euros so far, with Eni Gas e Luce* accounting for two of these. January 21, 2020 HIPAA News GDPR News Comments Off on GDPR: 160,000 breaches Reported & €114m Fines Applied so far. Category III violations refer to a company’s refusal to be transparent, such as failing to notify users and the Dutch data protection agency of breaches or refusing to cooperate with the Dutch DPA. Consent is so critical belonging to around 500,000 consumers was harvested by the Horizon 2020 framework Programme of the.. Wide reach, Even outside of the fine and on the amount of the GDPR the proper way to a. Has the power to impose a fine of up to €20million or four percent of global turnover whichever... And protection of consumer information as required by Article 32 of the fine and on amount... Of being the first year: what can organisations learn from GDPR fines, i.e implemented. 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