TCS: Protecting your company from risks and costs associated with GDPR and anti-spam laws

Exposure to Risk

You are potentially at risk if you or any individual employee and/or any system within your company sends commercial email and/or retains E.U. customers' personal data.

Complying with email regulations and GDPR is extremely challenging given all the variables your company needs to account for. Consider all of the various sources and uses of email in your company as well as all the places your customers' personal data can reside:

  • Every single employee's email database;
  • CRM and/or operational management system(s);
  • Bulk mail provider(s);
  • Electronic billing system;
  • Newsletters;
  • Promotional database, etc.
  • Multiple geographic locations
  • Non-integrated divisions/ operations/ facilities
  • Dispensed salesforce
  • Mobile devices
  • Changes to email contact information

Costs of Non-Compliance

Anti-spam regulations create significant regulatory and legal risks for small businesses, large corporations and individuals sending emails anywhere in North America and the European Union. Your officers and directors are also at risk.

Regulatory and Legal Costs:

  • CASL: fines up to $1 million for individuals and $10 million for companies
  • GDPR: depending on the infringement, fines up to €10 million or 2% of global revenues, whichever is greater; and fines up to €20 million or 4% of global revenues, whichever is greater
  • CAN-SPAM: fines as well as civil and criminal legal enforcement.

The fines and legal implications, which clearly can be very significant, are the literal tip of the iceberg in comparison to the costs of going through the process of being investigated and fined which can be far greater than the cost of the fine itself. The process spans months and sometimes more than a year and includes costs for:

  • External and internal legal fees;
  • Management and eDiscovery costs associated with responding;
  • Costs of corrective action, follow-up, reporting, monitoring and audit;

Reputational risk, "shame game." Equifax's share price dropped 40% in the two weeks following their 2017 breach.

Total Compliance Solutions gives you the tools
to manage and mitigate these risks.

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