Update: On 3 December 2019 the law imposing multi-million Ruble fines for infringing Russian data localization and information security laws has come into force. Since the law has already come into force, new fines may be imposed on companies based on results of Roskomnadzor’s inspections in 2020. Roskomnadzor has already identified the entities it plans to inspect in 2020 but may initiate unplanned inspections as well based, for example, on data subject complaints or its online monitoring of company activity.
On 8 July 2019, the UK data protection authority issued a notice of its intention to fine British Airways GBP 183.39 million (approx. USD 229.46 million) for infringements of the General Data Protection Regulation. The proposed fine relates to a data breach in which personal data of approximately 500,000 customers were compromised.
On June 20, 2019, Hogan Lovells partners Mark Brennan and Bret Cohen discussed in great detail the impact of the law, explained key definitions, and offered practical guidance on how to navigate it during the webinar, “Operationalizing the California Consumer Privacy Act.” More than 600 live attendees participated and were able to hear Mark and Bret cover how to determine whether businesses are covered, how to account for opt-outs from sales to third parties, the content and timing of CCPA notices, how to apply the CCPA’s exceptions, and more.
On June 13, 2019, a new draft bill imposing multi-million ruble fines for infringing Russian data localization and information security laws—multiplying the maximum penalty under current law by a magnitude of 240—was submitted to the State Duma (the lower chamber of Russian Parliament). This would supplement existing fines, which we reported were previously increased in 2017.
The President of the Personal Data Protection Office in Poland imposed a fine amounting to PLN 943,470 for failing to fulfil the company’s transparency obligations towards over six million data subjects under Article 14 of Europe’s General Data Protection Regulation. This is the first fine imposed by the Polish DPA under the GDPR and Poland’s Act on Personal Data Protection of 10 May 2018 implementing the GDPR. The decision provides some limited insights into the interpretation of the term “disproportionate effort” within the meaning of Article 14(5)(b) of the GDPR.
On 14 March 2019, the Dutch data protection authority announced its fining structure for violations of the European General Data Protection Regulation and the Dutch law implementing the GDPR.
On February 27, 2019, the Federal Trade Commission (“FTC”) announced that it settled with the operators of a video social networking app for a record civil penalty of $5.7 million under the Children’s Online Privacy Protection Act (“COPPA”). This FTC COPPA action was notable not just for the size of the penalty, but also because of the joint statement by the two Democratic Commissioners, Rebecca Slaughter and Rohit Chopra, that future FTC enforcement should seek to hold corporate officers and directors accountable for violations of consumer protection law.
Many companies have been struggling with GDPR implementation over the past two years, putting much effort into new roles, privacy concepts, and workflows. Now that the dust of the immediate GDPR compliance rush is settling, the first details of fines imposed under the GDPR and the number of cases pending with Data Protection Authorities (DPAs) in Europe are being made public. In Germany, DPAs are investigating a broad range of non-compliance issues and showing a tendency toward increasing their enforcement activities, to the point that we expect an announcement of increasing GDPR sanctions and fines in Germany in the near future.
Article 83 of the GDPR provides for two levels of administrative fines: a lower level – maximum of €10 million or 2% of the global turnover – for violations relating to record-keeping, data security, data protection impact assessments, data protection by design and default, and data processing agreements; and a higher level – maximum of €20 million or 4% of the global turnover – for violations relating to data protection principles, the legal basis for processing, information to data subjects, the prohibition of processing sensitive data, denial of data subjects’ rights, and data transfers to non-EU countries.
In the first fine issued by a German data protection authority under the GDPR, on 21 November 2018 the authority of the German state of Baden-Württemberg (“LfDI”) imposed a fine of Euro 20,000 on a social media provider for a violation of its data security obligations under Art. 32 of the GDPR. The company’s very good cooperation with the LfDI was key to avoiding a higher level of fines.
At the Privacy Laws and Business’ International Conference, Eduardo Ustaran evaluated the sorts of activities likely to prompt regulators into exercising their increased fining powers under the GDPR. In this post, we provide links to both a video of his presentation at the conference as well as a detailed report about his presentation.
It has finally happened. Like that train you are waiting for that keeps getting delayed but eventually arrives. The all-powerful trio comprising the European Parliament, the Council of the EU and the European Commission arrived at their destination after a journey of four years, and on December 15th, 2015, agreed the final text of the EU General Data Protection Regulation. Once formally adopted in the coming weeks, the GDPR will create a completely new legal framework for the collection, use and sharing of personal information that will apply well beyond Europe.
Recently, new rules on cookies came into force in the Netherlands. In addition, the Dutch Second Chamber approved a draft bill to introduce a mandatory data breach notification requirement and to strengthen the Dutch Data Protection Authority’s investigative and fining powers. The new rules apply to all companies acting as a “data controller” within the meaning of the Dutch Data Protection Act. The Dutch First Chamber has announced that it plans to review this draft bill as soon as possible.
Today’s Guest Blog is from Peter Fleischer, who writes: “Since 2012 has now begun, here’s a prediction about the future: there’s going to be a lot more privacy enforcement actions. By a lot of different government authorities, not just DPAs. And the sanctions/damages are going to go through the roof. Indeed, it’s not easy to keep track of which government officials are in charge of data protection enforcement actions. There are a lot of them.” Read more in this entry.
Spain has a new penalty regime for violations of privacy, with many minimum and maximum fines lowered. This is viewed as a business-friendly development at a time when the Spanish Data Protection Agency (“SPDA” or “Agency”) has earned a reputation as one of the more enforcement-oriented DPAs in the EU, and when one of its high-visibility enforcement efforts is under scrutiny.