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The Ministry of Digital Development will not penalize for the loss of data for the first time

14.07.2022

Mintsifra will not penalize for the loss of data for the first time.

The agency is developing a bill to tighten liability for the leakage of personal data, the introduction of turnover fines (the amount of which is tied to the company's turnover, profit). At the same time, meetings are held with business representatives who propose to postpone the establishment of solid penalties.

It is believed that against the backdrop of recent serious cyber attacks that ended in data leaks of Delivery Club and Yandex.Food customers into the network, there is a demand in society for the protection of personal data and personal information (which has always been taken formally). On the other hand, data operators claim that, given the economic situation, the timing for tightening the regulation of the treatment of personal information is not very well chosen.

A law has already been adopted imposing an obligation for all operators to report cyberattacks to government agencies as quickly as possible (within 24 hours) and the actions taken to investigate them (72 hours are given for this).

Now it is the turn for the development of appropriate amendments to the Code of Administrative Offenses of the Russian Federation and the definition of liability for data leakage. Back in May, it was proposed to set a fine of 1% for a leak and 3% for the fact of concealing data about a cyber attack from government agencies, where annual revenue is taken as the basis for the calculation.

However, at a recent meeting, business expressed concern about such serious fines in the face of sanctions and the consequences they caused: disruption of supply chains, inflation, and reduced demand.

Operating companies propose to introduce three types of penalties: a warning for the first case of leakage, a large fine for the second, and negotiable only for the third. The Ministry of Digital Development agreed in principle to a partial mitigation of liability measures and even to consideration of the issue of the absence of a fine when committing an offense for the first time. Moreover, the operating companies also insist on mitigating liability for the leak and concealing the fact of the leak. This issue is still being discussed and no decision has been made on it. Businesses are asked to submit detailed developments in two weeks.

Turnover fines are especially unpleasant for companies, since the entire revenue of the company will be taken as the basis. Usually, only the turnover in a certain market is taken into account, but in this case this method is not suitable. The calculation of the total revenue threatens the business with very impressive penalties.

When determining the fine, the circumstances, the scale of the cyber attack and damage, and the measures taken to prevent the leak are not taken into account.

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