Regulatory Bodies That Enforce Data Breach Fines

When a data breach occurs, regulatory bodies consider several factors when determining the fine. These factors include the severity of the breach, the number of individuals affected by the breach, the response and remediation efforts by the company, the company’s compliance history, and other factors such as intentional misconduct or negligence.

Have you ever wondered who issues fines for the various compliances and jurisdictions? 

Personal Information Protection and Electronic Documents Act (PIPEDA):

• • Jurisdiction: Canada
  • Applies to most organizations doing business in Canada
  • Compliance is crucial for establishing trust with consumers
  • At this time, businesses and organizations can be fined up to $100,000 CAD for each violation.

1. General Data Protection Regulation (GDPR):
   • Jurisdiction: European Union
   • Applies to organizations processing personal data of EU residents
   • Fines for non-compliance with GDPR provisions, including data breach notifications
   • Imposes fines of up to 4% of a company’s global annual revenue or €20 million, whichever is greater.
2. California Consumer Privacy Act (CCPA):
   • Jurisdiction: California, USA
   • Applies to businesses collecting personal information of California residents
   • Provides specific rights to residents and imposes fines for non-compliance, including data breaches
   • Fines of up to $7,500 per violation.
3. Health Insurance Portability and Accountability Act (HIPAA):
   • Jurisdiction: United States
   • Applies to entities handling protected health information (PHI)
   • Imposes fines for non-compliance with HIPAA provisions, including data breach notifications
   • Fines of up to $1.5 million per year for violations.
4. Federal Trade Commission (FTC):
   • Jurisdiction: United States
   • Imposes fines under Section 5 of the FTC Act for unfair or deceptive acts related to data breaches
   • Legal actions taken against organizations violating privacy rights or failing to maintain security
   • The FTC may bring civil actions for civil monetary penalties of up to USD 40,000 per violation of the FTC Act or COPPA. Each day that non-compliance continues is considered a separate “violation” for purposes of the law. In 2019, for example, the FTC fined Facebook $5 billion for its role in the Cambridge Analytica scandal.
5. Payment Card Industry Data Security Standard (PCI DSS):

• • Developed by major credit card companies
  • Designed to protect credit and debit card transactions from data theft and fraud
  • Compliance is expected for companies handling card transactions, though PCI SSC itself lacks legal authority
  • $5,000 to $100,000 per month for PCI compliance violations.

ISO 27001 vs SOC 2:

1. • Compliance with ISO 27001 and SOC 2 is not legally mandated in the United States
   • No direct penalties for non-compliance
   • Compliance may help reduce fines and penalties in the event of a data breach

It’s essential for organizations to be aware of and comply with these regulations to protect sensitive data and avoid potential fines.