FTC Safeguards Rule Compliance 2023 (2024)

FAQs

What is the penalty for violating the FTC Safeguards Rule 2023? ›

The revised FTC Safeguards Rule took effect on June 9, 2023. CPA firms are covered under this Rule, and the penalties are serious—$100,000 per violation, $43,000 per day for each consent violation, and other fines.

Revised FTC Safeguards Rule deadline was June 9, 2023

The updated rule requirements include: Planning and action to address “reasonably foreseeable internal and external risks” – including: data breaches, data leakage, and ransomware.

What are the Penalties of Non-Compliance? Failure to comply with the FTC Safeguards Rule can result in significant fines and damage to your business's reputation. The updated guidelines that go into effect June, 2023 dictate the FTC can impose penalties of up to $100,000 per violation.

That means that, while we can't put people in jail, many of our partners can and do, including the U.S. Department of Justice, U.S. Attorneys, and other federal, state, and local criminal law enforcers. When FTC cases include behavior that also violates criminal laws, we let criminal prosecutors know.

Companies that receive this Notice and nevertheless engage in prohibited practices can face civil penalties of up to $50,120 per violation.

Small Business Exemption

Specifically, small businesses are exempt from the following requirements: written risk assessments; a written incident response plan; an annual written report by the qualified individual; and continuous monitoring or annual penetration testing and biannual vulnerability assessment.

Safeguards Rule | Federal Trade Commission.

Under GLBA, penalties for non-compliance can include fines of up to $100,000 per violation, with fines for officers and directors of up to $10,000 per violation. And if that wasn't enough, the provisions include criminal penalties of up to five years in prison, and the revocation of licenses.

Under the law, claims in advertisem*nts must be truthful, cannot be deceptive or unfair, and must be evidence-based. For some specialized products or services, additional rules may apply.

The HSR size-of-transaction threshold for U.S. HSR filings will increase to US$119.5 million in 2024, up from US$111.4 million in 2023.

What is the new FTC rule? ›

Today, the Federal Trade Commission issued a final rule to promote competition by banning noncompetes nationwide, protecting the fundamental freedom of workers to change jobs, increasing innovation, and fostering new business formation.

Overview of Final Rule. The Final Rule requires financial institutions to report notification events, defined as the unauthorized acquisition of unencrypted customer information, involving at least 500 customers to the Commission.

A store's security system is a safeguard against theft, and a secret password is a safeguard against your sister reading your email. You can use it as a verb too: "We clearly need to safeguard our Halloween candy so Mom and Dad don't steal it after we go to bed."

It has increased from $612 to $659 for violations of Section 10 of the FTC Act. The maximum civil penalty amount has increased from $1,323,791 to $1,426,319 for violations of Section 814(a) of the Energy Independence and Security Act of 2007.

The GLBA Safeguards Rule is a regulatory framework that mandates financial institutions to implement comprehensive security measures for protecting customer data.

The Commission enforces both consumer protection and antitrust laws. Violations of some laws may result in civil penalties, which are adjusted annually for inflation.

The HBN Rule requires vendors of personal health records (“PHRs”) and related entities that are not covered by the Health Insurance Portability and Accountability Act (“HIPAA”) to notify individuals, the FTC, and, in some cases, the media of a breach of unsecured personally identifiable health data.