Germany Starts Fining Companies for Not Following New Safe Harbor Rules

[featured-text]It was recently announced in Germany that 3 companies were fined for not updating their Safe Harbor policies.[/featured-text]

The Hamburg Data Protection Agency (DPA) recently cited Adobe Systems, fruit juice maker Punica (a subsidiary of PepsiCo), and Anglo-Dutch consumer goods giant Unilever a total of 28,000 euros ($32,000) for failing to set up alternative legal channels for cross-border data transfers quickly enough. None of the companies had the required replacements for the Safe Harbor rules in place before the expiration of the permitted grace period.

While the amounts of these fines are not enormous to the companies involved, they are significant because of the precedent they set for potentially larger penalties in the future, and they send a clear message that implementation of appropriate policies and processes will be closely watched and companies aggressively penalized for non-compliance.

It is crucial for companies today with international locations to make sure they have all the new rules set up country by country to avoid potential fines.