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International Corporate Practice and Data Privacy Law
Penalties for violating data laws can be significant,
especially in Europe and Canada. By law, European “data subjects”
have a private right of action for data law violations. Separately,
every European country has a dedicated data agency to enforce
data laws. These agencies are getting vigilant. For example, Spain’s
data agency—said to be self-funded from the fines it collects—can
impose fines up to €600,000, and in recent years has imposed a
number of €300,506 fines for illegal data transfers. France’s cap on
fines is €150,000 for a first offense, plus five years in prison. German
data fines can reach €250,000. In the United Kingdom, fines are
unlimited. Further, in 2007, the United Kingdom took steps to amend
its data law to add a penalty of two years in prison for unauthorized
data disclosures. 4. Publicity.Violating data privacy law imposes costs beyond the penalties. In Europe especially, citizens jealously guard their privacy,
and so any multinational caught flouting privacy rights can suffer a
significant public relations hit. In Europe, news of a data privacy law
violation can have an effect similar to news stateside of a breach of
sex harassment laws