Table of Contents
In Short
- The Information Commissioner’s Office (ICO) can impose fines for breaches of data protection laws, including GDPR.
- Maximum fines can reach up to £17.5 million or 4% of annual global turnover, whichever is higher.
- Ensuring compliance with data protection standards is crucial to avoid severe financial penalties.
Tips for Businesses
Prioritise compliance with data protection regulations to minimise the risk of hefty fines from the ICO. Implement robust data security measures and regularly audit your practices. Engage legal experts to help understand your obligations and respond effectively to any data protection issues that may arise.
Since the implementation of the UK General Data Protection Regulation (UK GDPR), many businesses have been worried about getting data protection laws wrong and facing heavy fines. The Information Commissioner’s Office (ICO) can enforce data protection law breaches with fines, making examples of failing companies by issuing substantial penalties. Although high-profile fines capture considerable media attention, smaller businesses are also at risk of being fined. This article explores the ICO’s approach to fining and its fining guidance, the maximum penalties a company could face and practical steps towards compliance to help mitigate risks.
Which Breaches Could Lead to ICO Fines?
The ICO can issue fines when businesses fail to meet legal obligations. These breaches may include instances where a company does not process personal data lawfully, securely, or transparently or neglects individuals’ rights. The ICO may penalise a company if it fails to report personal data breaches, uses inadequate security measures, or neglects accurate record-keeping.
Additionally, the ICO can fine a business if it transfers personal data outside the UK without appropriate safeguards. The ICO may also issue a fine if a company does not comply with enforcement, assessment, or information notices.
It may also issue monetary penalties for failing to pay the data protection fee—an obligation many businesses have. As such, fines can arise under several types of circumstances.
What are the Maximum Penalties, and How Does the ICO Decide on Fines?
The ICO imposes two tiers of maximum fines. For less serious breaches, a business could face fines of up to £8.7 million or 2% of global annual turnover, whichever is higher. For serious violations, such as unlawfully processing personal data or breaching data transfer rules, the ICO can fine up to £17.5 million or 4% of global annual turnover, whichever is higher. Your business can understand more about the maximum fines by reading the ICO’s guidance.
While larger businesses are more likely to face maximum fines, this does not mean small businesses should be complacent about their obligations.

This factsheet sets out how your business can become GDPR compliant.
The ICO considers multiple factors when deciding on fines. The actual fine imposed is determined through a structured process as per the ICO’s Data Protection Fining Guidance, which considers various factors such as the seriousness of the infringement, the categories of personal data affected, the nature, gravity, and duration of the infringement, and any aggravating or mitigating circumstances to ensure that the penalty is effective, proportionate, and dissuasive.
The ICO has broad discretion in deciding whether and how much to fine businesses. This discretion means that even smaller businesses that commit unintentional breaches of data protection laws may face financial penalties.
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Can Processors Be Fined?
Data controllers have a range of legal obligations and could, therefore, face penalties for various breaches. However, data processors also have direct legal responsibilities under UK GDPR (such as entering data processing agreements and maintaining data security measures to safeguard data). They could also be subject to regulatory action, including fines. As such, all businesses subject to data protection law rules should understand their obligations and follow them to avoid regulatory action.
The ICO has demonstrated its willingness to take monetary enforcement actions against processors for failing to meet their legal obligations. In fact, there has been groundbreaking news about notable potential monetary enforcement action against a processor.
Which ICO Resources Can Guide Businesses Understand More About Fines?
The ICO focuses on helping businesses comply with data protection laws rather than penalising them. The regulator has published guidance to help worried businesses. It encourages businesses to view compliance as an ongoing responsibility. Waiting until something goes wrong is strongly discouraged.
Instead, the ICO recommends that businesses demonstrate accountability and proactive compliance. Businesses can also use the ICO’s Accountability Framework to assess and improve compliance measures.
The ICO publishes details of various enforcement actions, which help pinpoint its compliance expectations and highlight common mistakes. Your business can review these actions and the ICO’s fining guidance to identify where other companies have gone, understand the regulator’s approach to fining, and take active steps to avoid the same mistakes.
What Can Your Business Do to Avoid ICO Fines?
While fines can be a significant concern, your business should prioritise proactive steps to meet its data protection obligations and reduce the risk of fines.
A comprehensive data audit is a strong way to help your business understand how you use personal data in practice. You can then use this audit to assess your compliance with data protection law rules. Performing a gap analysis can help you identify weaknesses and areas your business needs to improve to comply with data protection law rules. From this, you can build a robust compliance plan and implement a range of compliance measures as required by your specific business.
It may not be easy for a business to gauge whether it is processing personal data in a compliant way, particularly considering the extremely broad range of legal rules businesses must navigate. If your company is concerned about potential enforcement action, seeking legal advice is highly recommended.
A data protection solicitor can work with you to guide you on whether your data protection measures meet the UK GDPR requirements or if any fall short. They can also work with you to build policies and procedures to comply with your obligations under the UK GDPR rules and reduce the risk of penalties.
Key Takeaways
The ICO can enforce compliance with UK GDPR and DPA 2018 through fines for various infringements. Maximum fines range from £8.7 million or 2% of global annual turnover for less serious breaches to £17.5 million or 4% for serious violations. By maintaining a proactive compliance programme, your business can minimise risks and demonstrate accountability, which could help reduce the likelihood of you facing heavy fines. While fines are a big concern, you should focus on proactive compliance steps to demonstrate your accountability and minimise risk.
If you need help with data protection law and guidance on how to avoid fines, our experienced data, privacy and IT lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
Legal advice can help you identify risks and implement data protection law compliance measures (such as key data protection policies and procedures) to support your compliance efforts.
The ICO can issue fines of up to £8.7 million or 2% of global annual turnover for less serious breaches and up to £17.5 million or 4% of global annual turnover for more serious breaches.
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