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U.S. Based Businesses Could Face $24M (USD) Fine Under European Union’s General Data Protection Regulation (GDPR)

“…the GDPR increases administrative penalties up to a maximum of EUR 20 million or 4 percent of the annual revenue of the organization, depending on the facts and circumstances of the case, according to the International Association of Privacy Professionals.”

By Jennifer Kiesewetter, Forbes, 11/28/2017

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The European General Data Protection Regulation (EU GDPR), the most significant change to data protection in three decades, becomes effective on May 25, 2018. The regulation intends to strengthen individual data and privacy protection for individuals residing within the EU. Additionally, it intends to simplify the regulatory framework for international business by unifying data and privacy regulations. It will replace the Data Protection Directive from 1995.

Regulation vs. Directive

One key feature of this sweeping change is that the EU GDPR is a regulation replacing a directive. Regulations apply directly to each member state in the EU, whereas with a directive, each member state has discretion as to implementation of data protection regulation. Thus, with the regulation implementation, which itself offers stringent data and privacy protection, it can also offer a simplification of regulatory framework across the EU through unification of data and privacy regulations. This will eliminate inconsistencies among local laws and reduce administrative costs and burdens for international businesses when interacting with multiple data and privacy protection authorities.

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