Businesses Confronting Payment Demands for GDPR Data Breaches

The main objective of the launch of the General Data Protection Regulation (GDPR), in May 2018, is to make sure that the freedoms and rights of people residing in EU countries are safeguarded when it comes to the processing of private data.

With this in mind, Article 82 of the General Data Protection Regulation deals with situations where the laws have not been complied with. This leads to the data business being able to demand payment in the law courts.

The probability of having to pay out compensation must imply that businesses check all of their processes and data, in order to make sure that they are complying, and that they restrict the danger of data breaches happening. Until the first payment claim is made, it’s difficult to guess how much compensation will be outstanding, however, sums might possibly be considerable.

Data businesses are already capable to make demands versus data managers if there’s a problem with the handling of their private data which endangers their freedoms or rights. GDPR increases this capability by enabling measure to be taken versus data processors and data managers. This might imply that the number of compensation claims made rises, in proportion to the rise in the number of people to take action against.

General Data Protection Regulation also emphasizes that recompense can be demanded for both non-material and material damage. This implies that a data business can make a demand with regard to harm to status in the same manner that they can make a demand with regard to fiscal losses. This isn’t really much of a variation to the capabilities which presently exist, however, it does further emphasize the situation.

One main fact to be conscious of is that data processors and controllers will not be held accountable if they were in no way made mistake regarding the incident which caused the non-material or material harm. Interestingly, it’s yet unclear what other measures can be taken in situations like this. Similar to other features of recompense, like the amounts outstanding, it appears that we will have to wait until the first action is undertaken, to see what occurs.