1. Negative media coverage and loss of customer trust
The Data Protection Officer supports management in implementing internal data protection compliance and thus protects the company from data protection scandals—including the negative press coverage that often accompanies them. As numerous examples have shown, this is particularly relevant for companies whose offerings are aimed at private end customers (consumers).
2. Trouble with the supervisory authority
Competitors, disgruntled employees, or customers repeatedly contact the data protection supervisory authorities. If at all possible, you should avoid being unable to present a Data Protection Officer in response to an initial inquiry from the supervisory authorities.
3. Fines against management and the company
An administrative fine under the GDPR may be imposed if a company fails to appoint a Data Protection Officer in good time. The fine can be imposed both on management itself and on the company.
4. Maintaining ISO certification
If your company undergoes regular ISO certification for quality assurance, it is often checked—when maintaining this certification—whether you have fulfilled your obligation to appoint a Data Protection Officer.
5. The Data Protection Officer must often be named in contracts
When you enter into contracts with partner companies, suppliers, or service providers and transfer personal data in this context, these contracts must also include numerous data protection clauses. These often require naming the Data Protection Officer.
6. An external Data Protection Officer has no special protection against dismissal
If you appoint an internal employee as the Data Protection Officer, that person receives special protection against dismissal. While the GDPR does not provide for this, such protection is laid down in the German Federal Data Protection Act (BDSG). As a result, terminating your Data Protection Officer’s employment relationship is generally impermissible. By contrast, you can terminate an external Data Protection Officer in accordance with the contract and applicable notice periods.
7. Liability in the event of breaches
An internal Data Protection Officer benefits, in their role as an employee, from internal compensation rules for damages. This eases employees’ liability in the event of a breach of duty. Your external Data Protection Officer, on the other hand, is liable to a greater extent—even in cases of simple negligence.
Request a consultation appointment