A technology firm recently underwent a compliance audit and was found to be in non-compliance with several data protection regulations regarding the handling of customer personally identifiable information (PII). Of the following, what is the MOST likely direct penalty the firm will receive from the regulatory body?
Public notification of all affected customers detailing the compliance failure
Revocation of the company's business license to operate
Mandatory, independent audits for a period of five years
Monetary fines are a common and direct penalty for non-compliance with data protection regulations such as GDPR and CCPA. Regulatory bodies are empowered to levy substantial fines to penalize organizations and deter future violations. While reputational damage is a significant indirect consequence, and actions like mandated audits or loss of a business license are possible, fines are the most common and direct punitive measure for such violations. The complete revocation of a business license is typically reserved for the most extreme or repeated offenses.
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