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July 8, 2019
The UK’s Information Commissioner Officer has swung the sharp stick of GDPR at British Airways and it looks like the damage might be a £183.39 million fine.
With GDPR inked into the rule book in May last year, the first investigations under the new guidelines will be coming to a conclusion in the near future. There have been several judgments passed in the last couple of months, but this is one of the most significant in the UK to date.
What is worth noting is this is not the final decision; this is an intention to fine £183.39 million. We do not imagine the final figure will differ too much, the ICO will want to show it is serious, but BA will be giving the opportunity to have its voice heard with regard to the amount.
“People’s personal data is just that – personal,” said Information Commissioner Elizabeth Denham.
“When an organisation fails to protect it from loss, damage or theft it is more than an inconvenience. That’s why the law is clear – when you are entrusted with personal data you must look after it. Those that don’t will face scrutiny from my office to check they have taken appropriate steps to protect fundamental privacy rights.”
The EU’s GDPR, General Data Protection Regulation, offers regulators the opportunity to fine guilty parties €20 million or as much as 3% of total revenues for the year the incident occurred. In this case, BA will be fined 1.5% of its total revenues for 2018, with the fine being reduced for several reasons.
In September 2018, user traffic was directed towards a fake British Airways site, with the nefarious actors harvesting the data of more than 500,000 customers. In this instance, BA informed the authorities of the breach the defined window, co-operated during the investigation and made improvements to its security systems.
While many might have suggested the UK watchdog, or many regulators around the world for that matter, lack teeth when it comes to dealing with privacy violations, this ruling should put that preconception to rest. This is a weighty fine, which should force the BA management team to take security and privacy seriously; if there is one way to make executives listen, its hit them in the pocket.
This should also be seen as a lesson for other businesses in the UK. Not only is the ICO brave enough to hand out fines for non-compliance, it is mature enough to reduce the fine should the effected organization play nice. £183.39 million is half of what was theoretically possible and should be seen as a win for BA.
Although this is a good start, we would like to see the ICO, and other regulatory bodies, set their sight on the worst offenders when it comes to data privacy. Companies like BA should be punished when they end up on the wrong side of right, but the likes of Facebook, Google and Amazon have gotten an easy ride so far. These are the companies who have the greatest influence when it comes to personal information, and the ones which need to be shown the rod.
This is one of the first heavy fines implemented in the era of GDPR and the difference is clear. Last November, Uber was fined £385,000 for a data breach which impacted 2.7 million customers and drivers in the UK. The incident occurred prior to the introduction of GDPR, the reason the punishment looks so measly compared to the BA fine here.
The next couple of months might be a busy time in the office of the ICO as more investigations conclude. We expect some heavy fines as the watchdog bears its teeth and forces companies back onto the straight and narrow when it comes to privacy and data protection.
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