Civil Penalty

A monetary fine imposed by regulators or courts for privacy law violations, distinct from criminal penalties. Civil penalties serve as enforcement mechanisms to punish non-compliance and deter future violations. Under GDPR, civil penalties (administrative fines) can reach up to €20 million or 4% of annual global turnover, whichever is higher, for serious violations. CCPA authorizes civil penalties of up to $2,500 per violation or $7,500 per intentional violation, assessed by the California Attorney General. Many state data breach notification laws impose civil penalties for non-compliance. Penalty calculations typically consider factors like violation severity, duration, number of affected individuals, degree of negligence or intent, cooperation with authorities, previous violations, and remedial actions taken. Organizations should understand potential civil penalties under applicable laws, implement compliance programs to minimize risk, and maintain adequate cyber liability insurance coverage.