DOJ Enforces Data Security Rule: Companies Face October 6 Deadline or Heavy Fines
The Department of Justice (DOJ) has started enforcing its Data Security Program rule, which targets transactions involving government-related data and bulk sensitive personal data. Companies must comply by October 6, or face significant penalties.
The DOJ began full enforcement on July 1, following a 90-day grace period. The Rule applies to a wide range of transactions, including those involving anonymized, aggregated, or encrypted bulk data that meet specific volume thresholds. Companies must establish data compliance programs and report restricted transactions to ensure justice.
Penalties for noncompliance are severe. Civil penalties can reach the greater of $368,136 or twice the value of the transaction. Willful criminal violations may result in up to 20 years in prison and fines of up to $1,000,000. Failure to comply may lead to enforcement action by the DOJ.
The Data Security Program aims to control the flow of sensitive data to 'countries of concern'. Companies involved in covered data transactions must act promptly to ensure full compliance by the October 6 deadline and avoid potential penalties.
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