Ministry of Digital Development Proposes New Mechanism for Personal Data Leaks Compensation
The Ministry of Digital Development has put forward a new proposal to use the Public Service portal as a third party in the process of paying compensation for the leakage of personal data. The proposal was announced by the head of the department, Maksut Shadaev, on April 26, 2023, at the Telecom conference.
Under this new mechanism, if an operator confirms a data leak, they will post relevant information and provide a window of time for victims to apply through the State Services with a statement of compensation. The operator can determine the amount of compensation and offer it to affected users. If two-thirds of users contacting the State Services through the portal confirm the offer, then the operator will be subject to a softening factor.
This proposal was discussed with all market participants, including communication operators and Internet companies. The Fund for Assistance to the Blows is unlikely to be created following the introduction of the new mechanism, according to the minister.
Shadaev also noted that compensation may not necessarily be in monetary form but could be in the form of discounts on services or bonuses. The important factor is that two-thirds of users accept the proposed conditions. If the conditions are not accepted, then the company responsible for the leak will receive a reduction coefficient in determining the value of a working fine.
The proposal aims to provide quicker and more efficient compensation for victims in the event of a data leak. It is expected to come into effect in the near future pending approval.