Avoiding GDPR fines in the UK: what businesses need to know

Handling personal data is part of the daily routine of many websites and online projects. From a simple contact form to an online store, all sites collect some type of user information, which is why it’s important to keep your data protection obligations and responsibilities in mind.

What happens if your website fails to protect that data properly? This is where potential fines come into play. In this article, we’ll explain the key points about data protection violations: which laws apply, what constitutes a data breach, what fines may apply, and most importantly, how to prevent problems before it’s too late.

What laws apply to data protection?

Before we dive into violations and fines, let’s review the basic regulations that must be followed regarding digital data protection.

Since 2018, the General Data Protection Regulation (GDPR) came into effect within the European Union. GDPR governs everything related to personal data and its free movement within the European Union (EU) and the European Economic Area (EEA).

The provisions within GDPR were incorporated into UK national law in 2018 under the UK GDPR, meaning that the same policies regarding processing of personal data remain in force in the UK even after its withdrawal from the EU. GDPR remains in force in the UK as part of the Data Protection Act 2018 (DPA 2018).

Broadly speaking, both the EU and UK GDPR focus on protecting individuals’ personal data and regulate key aspects such as:

• Explicit consent for data processing.
• The use of cookies on websites.
• The obligation to provide a clear and accessible privacy policy that informs users about how their data is processed.

What types of data protection violations are there?

Data protection laws classify violations into three levels: minor, severe, and very severe. Let’s briefly review each one.

Minor violations

Minor data protection violations include:

• Not informing users correctly about the use of their personal data.
• Ignoring user requests about their data.
• Failing to notify authorities of a data breach within the required timeframe.
• Not responding to user requests for data access, rectification, or deletion.
• Charging users for access to their personal data.
• Not publishing the contact details of the Data Protection Officer (DPO).

Severe violations

Severe violations have a medium level of severity and include:

• Processing minors’ data without obtaining consent from parents or legal guardians.
• Failing to implement security measures for data processing.
• Not adopting technical and organisational measures to protect data within a company.
• Not appointing a Data Protection Officer (DPO) when needed.
• Ignoring requests from data protection authorities.
• Entrusting data processing to a third party without a proper contract.
• Not reporting security breaches to the authorities.

Very severe violations

Very severe violations involve failure to follow fundamental aspects of the regulations. Examples include:

• Processing personal data without consent or not informing users about data processing.
• Processing data unlawfully.
• Using personal data for a purpose different from what the user consented to.
• Processing highly sensitive data (e.g., health, racial origin, ideology) without meeting legal requirements.
• Transferring personal data to third countries without adequate safeguards.
• Obstructing authorities’ supervisory tasks.

Fines and penalties for GDPR violations in the UK

Since data protection laws safeguard the right to privacy and personal data security, failing to comply can lead to serious consequences for individuals and businesses alike.

Both the UK GDPR and the Data Protection Act 2018 establish financial penalties that can reach up to £17.5 million or 4% of global annual turnover (whichever is highest) for the most serious breaches.

Added penalties may include the temporary suspension or prohibition of data processing, as well as the obligation to implement corrective security measures.

Fines are issued by the UK’s data protection authority, the Information Commissioner’s Office (ICO), and vary based on the severity of the violation. Factors considered include:

• The level of harm caused by the violation.
• The volume of affected data.
• The type of data involved.
• Whether minors’ data were compromised.
• Whether the offender has previous violations.
• Cooperation with authorities.
• Measures taken by the offender to mitigate damages.

Examples of fines for data protection breaches

Some major tech companies have been fined for GDPR violations. The highest fine ever imposed was against Meta, which had multiple violations across its services (Facebook, Instagram, WhatsApp). According to Statista, Facebook was fined €1.2 billion in May 2023.

On this site you can discover the fines imposed in each country bound by GDPR. Among them in the UK:

• One of the largest fines imposed by the ICO was against British Airways, which was fined £20 million in 2020 following a cyberattack that compromised the personal data of over 400.000 customers.

• Marriott International, which was fined £18.4 million after failing to protect customer data in a breach affecting millions of guests worldwide.

It’s important to note that it’s not only large corporations that can be fined. SMEs and sole traders can also be penalised for data protection violations. Many smaller organisations have received enforcement notices or financial penalties for non-compliance. Examples include:

• A recruitment agency fined £130,000 for unlawfully sharing personal data with clients.

• A small business was fined £10,000 for sending unsolicited marketing emails without proper consent.

• A motor industry company fined £40,000 for installing CCTV that captured audio recordings of staff without a lawful basis.

How to avoid data protection violations

The first thing to consider when creating a website is that you must include the necessary legal documentation for data protection compliance.

Luckily, you don’t need an expensive lawyer to draft legal documents for your website. There are user-friendly solutions like Termly, which generates and manages all the legal documentation required for a website in just minutes, including:

• Cookie consent management.
• Privacy policies.
• Terms and conditions.
• End-User License Agreements (EULA).

Once your site is live, proper data management is crucial. The Data Management Association (DAMA), a global nonprofit dedicated to data governance, offers best practices to prevent violations and penalties:

• Establish confidentiality policies to protect customer and employee data.
• Define access controls to ensure only authorised personnel handle sensitive information.
• Minimise data collection—only request essential information.
• Monitor data integrity to prevent unauthorised alterations.
• Have an incident response plan for data breaches or cyberattacks.
• Provide ongoing employee training on data protection importance.
• Conduct regular security audits within your company.

Protecting data builds trust

As we’ve seen, failing to comply with data protection regulations can lead to significant consequences. However, ensuring personal data security isn’t just a legal requirement—it’s also a chance to build trust and strengthen relationships with customers and users. Beyond avoiding fines and penalties, prioritising data security proves commitment, transparency, and respect for privacy.