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BizReport : Law & Regulation : July 18, 2016

Report reveals the financial risk of GDPR non-compliance

If the EU General Data Protection Regulations were to be introduced today, the global consumer products industry would be liable for hundreds of billions of dollars in fines according to new research from Capgemini Consulting.

by Helen Leggatt

For their latest study, 'Consumer Insights: Finding and Guarding the Treasure Trove', Capgemini Consulting surveyed more than 300 executives from 86 large global consumer product firms. Their combined revenue is more than $756 billion.

The findings suggest an industry walking a tightrope between customer worries surrounding privacy and security and driving increased value through consumer data analysis.

However, the way in which global consumer products companies are collecting consumer data could pose a large financial problem if the EU General Data Protection Regulations (GDPR) were introduced today, found Capgemini's research. Not only had 90% of the companies suffered a data breach, but almost half are not in compliance with industry standards. Such issues under the GDPR could incur fines of up to 4% of a company's annual revenue, totaling an industry bill of anywhere up to $323 billion.

The GDPR comes into effect in two years time, but the time to start planning is now, according to Capgemini.

"Two years sounds like a long time, but businesses big and small need to get their house in order before it's too late," says Mark Lomas, a senior consultant at Capgemini. "Any business that gathers personal information regarding EU residents will be subject to the compliance rules, regardless of whether that business is in the EU or not."

Tags: data protection, EU, law, regulation

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