What are the potential consequences of non-compliance with GDPR?

• A. Fines up to 4% of yearly turnover, loss of customer trust, increased regulatory oversight, and reputational damage
• B. Only financial penalties
• C. No penalties
• D. Increased government subsidies

Answer: (A)

Non-compliance with GDPR carries both financial and non-financial consequences that reflect the regulation’s aim to protect personal data. The penalties are substantial and are designed to be proportionate to the business, with the potential fine reaching the greater of 4% of annual global turnover or €20 million. But fines aren’t the only impact: authorities can impose corrective measures, such as orders to halt processing, required changes to data practices, and ongoing supervisory oversight or audits. Beyond the formal penalties, there’s a real risk to reputation and customer trust—people care about how their data is handled, and a breach or misuse can damage trust and harm the business’s image long after any fine is paid. The combination of potential large fines, regulatory scrutiny, and reputational damage makes non-compliance a serious, multi-faceted risk. Other options miss this broader reality, either focusing only on money, claiming there are no penalties, or bringing in subsidies that aren’t related to GDPR enforcement.