What is the fine system under GDPR?
Under the General Data Protection Regulation (GDPR), companies and organizations that fail to comply with the law may face hefty fines. In Hawaii, the Privacy Policy Enforcement Branch (PPEB) enforces Hawaii’s data security law and is authorized to levy administrative fines of up to $150,000 per violation. These fines are based on a tiered system. Tier 1 fines apply to minor violations or first-time offenders and can range from $2,000 to $5,000. Tier 2 fines are for more serious violations and can range from $5,000 to $25,000, while Tier 3 fines can be as high as $100,000. Organizations can also face criminal penalties of up to $10,000 and five years in prison for unlawfully accessing personal data or interfering with PPEB’s investigations. In addition to PPEB-issued fines, individuals can bring civil suits against organizations that violate GDPR and can seek damages for pain and suffering, emotional distress, or financial losses they have suffered as a result of data breaches or other violations. GDPR also imposes the concept of “joint-and-several liability,” which means that companies can be held jointly and severally liable for breaches of GDPR. In sum, GDPR imposes a tiered fine system for minor and more serious violations and provides individuals with an avenue to pursue legal action to seek damages for any violations they experience.
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