What types of penalties and fines do website operators face for violating the GDPR?

Introduction and meaning of penalties and fines:

The General Data Protection Regulation (GDPR) provides for strict penalties and fines for violations of its provisions to ensure that companies take data protection regulations seriously. These sanctions can be significant and affect both smaller and larger companies. Here are the different types of penalties and fines explained in detail:

Types of penalties and fines (Article 83 GDPR):

1. Warnings and notices (Article 58 paragraph 2 letter a GDPR):
   • Warning: The supervisory authority may issue a warning if the planned processing activity is likely to violate the GDPR.
   • Notes: The supervisory authority may provide advice and recommendations on how to improve data protection practices in order to avoid future violations.
2. Instructions and requirements (Article 58 paragraph 2 letters cf GDPR):
   • Instructions on adapting processing: The supervisory authority may order the controller or processor to adapt processing operations to the provisions of the GDPR, including the rectification, erasure or restriction of processing of personal data.
   • Information obligations: The supervisory authority may instruct the controller or processor to notify the data subjects of a data breach.
   • Data access: The supervisory authority may restrict or prohibit access to personal data.
   • Restriction or suspension of data processing: The supervisory authority may temporarily or permanently restrict or suspend the processing of personal data.
3. Fines (Article 83 GDPR):
   • Category 1: For less serious infringements, fines of up to EUR 10 million or up to 2% of the total worldwide annual turnover of the previous financial year, whichever is higher, may be imposed. Examples of such infringements include:
     • Violation of the obligations of the controller and the processor under Articles 8, 11, 25 to 39 and 42 to 43 GDPR.
     • Violation of the certification body’s obligations under Articles 42 and 43 GDPR.
     • Violation of the supervisory authority’s obligations under Article 41(4) GDPR.
   • Category 2: For more serious infringements, fines of up to EUR 20 million or up to 4% of the total worldwide annual turnover of the previous financial year, whichever is higher, may be imposed. Examples of such infringements include:
     • Violation of the principles of processing, including the conditions for consent, pursuant to Articles 5, 6, 7 and 9 of the GDPR.
     • Violation of the rights of data subjects pursuant to Articles 12 to 22 GDPR.
     • Violation of the obligations related to the transfer of personal data to third countries or international organizations pursuant to Articles 44 to 49 GDPR.
     • Failure to comply with an instruction or temporary or definitive restriction on processing or suspension of data flows by the supervisory authority pursuant to Article 58(2) GDPR.

Relevant articles of the GDPR:

• Article 58: Powers of the supervisory authority
• Article 83: General conditions for imposing fines
• Article 84: Sanctions

Real examples of fines:

1. Google LLC (50 million euros):
   • Violation: Google was fined 50 million euros by the French data protection authority CNIL. The reason was the lack of transparency and insufficient information for users about the processing of their data as well as the lack of valid consent for personalized advertising.
   • Result: The high fine shows how seriously the supervisory authorities take violations of the transparency and consent requirements of the GDPR.
2. British Airways (£22 million):
   • Breach: The UK data protection authority ICO imposed a fine of £22 million on British Airways for inadequate security measures that led to a data breach in which the personal data of around 400,000 customers was compromised.
   • Result: This example underlines the need for appropriate technical and organizational measures to protect personal data.
3. H&M (35 million euros):
   • Violation: H&M was fined 35 million euros by the Hamburg data protection authority because the company illegally collected and stored detailed information about the private lives of its employees.
   • Result: The case shows that the processing of employee data is also subject to strict data protection requirements and that violations can have serious financial consequences.
4. Marriott International (£18.4 million):
   • Breach: Marriott International was fined £18.4 million by the UK data protection authority ICO after a cyberattack resulted in a data breach that exposed the personal information of around 339 million guests worldwide.
   • Result: This case highlights the importance of data security and the need to take appropriate measures to prevent data breaches.

Summary:

The GDPR provides for strict penalties and fines for violations of its provisions to ensure compliance with data protection rules. These sanctions can be significant and affect both small and large companies. The examples given show that violations of the GDPR can have significant financial consequences and that companies must take their data protection practices seriously to avoid such sanctions. Compliance with the GDPR helps to increase user trust and ensure the security of personal data.