Representatives of large companies criticized the bill on penalties for turnover due to personal data leaks, adopted by the State Duma in the first reading. This is reported by RBC.
The investigations became known after a thematic meeting held at the Ministry of Economic Development on July 16.
In the current version, the bill introduces amendments to the criminal and administrative codes, which include a significant increase in penalties for personal data leakage – from the current 100 thousand rubles to 15 million rubles if the leak concerns more than 100 thousand citizens.
In case of repeated violations, the bill provides for the possibility of imposing turnover fines in the amount of 0.1 to 3% of revenue, but not less than 15 million rubles and not more than 500 million rubles.
Representatives of large companies criticized these proposals for various reasons. They mentioned hacker attacks from Ukraine, very large-scale investments in personal data protection tools, which will lead to higher prices for services for consumers and even a return to the flow of paper documents.
And “since investments in information security will not be seen as mitigating circumstances, some companies will find it easier to give money to extortionists rather than pay the fines for repayment.” And small businesses facing multimillion-dollar fines following a leak will also be forced to close.
All meeting participants declined to comment at RBC’s request.
State Duma of January 23, 2024 accepted on first reading draft law on fines for leaking personal data. The date of the second reading is not yet known.
Previously in Russia appreciated plans to impose turnover penalties on companies for data breaches.
What are you thinking?
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.