Facebook Scandal: How Facebook's Fine Signals GDPR Warning
We have all signed up for newsletter, apps and websites in the hope of money off or the chance to win that perfect holiday. But what does this mean for businesses?
In the wake of the Facebook scandal, the Information Commissioner’s inquiry was set up to look into the misuse of Facebook data. This has now expanded to take in the vast work of online data selling and brokering by companies.
Described as “new oil”, data has become a hot commodity with companies set up just to broker the sale of consumers details. The industry, however, remains largely unregulated, even with the introduction of the GPDR in the EU, this only requires users to be informed of how their data is being used.
But while some companies were unsure how, and if they would be penalised for non-compliance of the new GDPR rules, last weeks' fining of Facebook should come as a warning. Pledging to fine the social media company £500,000 for their Cambridge Analytica scandal (the maximum amount under the Data Protection Act 1998 as the event occurred before the new GDPR rules). Companies can now, however, be fined up to 4% of global annual turnover.
Adrian Newby, chief technology officer at Crownpeak, parent company to privacy vendor Evidon said “For anybody wondering whether GDPR would have more enforcement teeth, …the ICO’s comments on the Facebook/Cambridge Analytica case should leave them in no doubt”
Facebook are not the only ones who are being penalised. Other companies are facing hefty fines for their inability to comply with GDPR and the secure handling of customers data.
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