What is a major consequence of failing to comply with data protection regulations?

Failing to comply with data protection regulations can lead to legal penalties and fines, which is a significant consequence for organizations. Regulatory bodies impose these penalties to enforce compliance with laws designed to protect personal data and privacy. For instance, breaches of regulations such as GDPR or CCPA can result in substantial financial repercussions, including fines that can reach millions of dollars, depending on the severity of the violation.

In addition to financial repercussions, non-compliance can lead to legal action from affected individuals whose data has been mishandled, resulting in costly lawsuits. Organizations may also face increased scrutiny from regulators, which can lead to stricter monitoring and oversight.

While the other options touch on various aspects of a business's reputation and internal efficiency, they do not address the immediate and tangible consequences of non-compliance. Increased customer trust, enhanced employee productivity, and improved corporate image are generally associated with effective data protection practices, not the absence of them. Therefore, the most accurate and relevant consequence of failing to comply with data protection regulations is the risk of facing legal penalties and fines.