Overview

This article requires Member States to establish rules for penalties applicable to GDPR infringements not subject to administrative fines, ensuring that penalties are effective, proportionate, and dissuasive. Member States must notify the European Commission of these rules and any subsequent amendments.


Key Principles

  • Effectiveness: Penalties must meaningfully enforce GDPR compliance.

  • Proportionality: Penalties are scaled according to the severity and nature of the infringement.

  • Deterrence: Penalties must discourage violations and promote adherence to GDPR.

  • Transparency: Rules and amendments are communicated to the European Commission.

  • Consistency: Align national penalties with GDPR objectives and enforcement practices.

Organizational Applicability

This article applies to:

  • Member State authorities responsible for implementing national penalty rules.

  • Controllers and processors subject to penalties for GDPR infringements not covered by administrative fines.

  • Legal and compliance teams monitoring national enforcement obligations.

  • Public and private sector organizations processing personal data in the EU/EEA.

Implementation Requirements

  • Establish national rules for penalties addressing GDPR violations outside administrative fines.

  • Ensure penalties are effective, proportionate, and dissuasive.

  • Notify the European Commission of established rules and any subsequent amendments.

  • Maintain documentation to demonstrate the applicability and enforcement of penalties.

Implementation Guidance

  • Develop internal procedures to assess, impose, and monitor penalties for GDPR violations.

  • Train staff and enforcement teams on national penalty rules and reporting obligations.

  • Establish communication channels with the Commission for notifications and updates.

  • Periodically review penalty rules to ensure consistency with GDPR objectives and effectiveness.

Periodic Review

  • Frequency: Annually or upon amendments to national penalty rules.

  • Responsible Role: Member State authorities, Compliance Team, or Legal.

  • Outcome: Ensure penalties are applied effectively, proportionately, and in alignment with GDPR enforcement objectives.

Non-Compliance Risks

  • Fines and Legal Exposure: Failure to implement effective penalties may result in enforcement actions or legal challenges.

  • Reputational Damage: Loss of public and stakeholder trust in national enforcement.

  • Operational Risk: Ineffective or inconsistent penalties may reduce compliance and deterrence.