Financial risks and remedies

Type Maximum Imposed by
Administrative monetary penalty (s. 90.1 and seq.) $10M or 2 % of worldwide turnover of the previous fiscal year (whichever is higher) CAI
Penal fine (s. 91) $25M or 4 % of worldwide turnover (whichever is higher) Court
Civil remedy (s. 93.1) Punitive damages of at least $1,000 for intentional breach or gross fault Court

A decision-maker's reading

  • These are ceilings: the actual penalty depends on severity, duration, cooperation and measures taken.
  • The civil remedy applies per affected person: an incident affecting thousands may multiply exposure.
  • On top of penalties come real costs: investigation, notification, lost customers, reputational damage, litigation.

Example (SaaS). A cross-customer leak in a multi-tenant product affects employees of dozens of companies: regulatory, contractual (DPA clauses) and reputational exposure at once.

Example (SMB). A 12-person SMB faces the same obligations as a large company; only the scale of penalties (calculated on turnover) differs.

Detailed legal framework: see the reference guide — Myths and financial penalties.