Which of the following is a potential GDPR non-compliance consequence besides fines?

Which of the following is a potential GDPR non-compliance consequence besides fines?

• A. Loss of customer trust and reputational damage
• B. Increase in profits
• C. No impact
• D. Expanded marketing reach

Answer: (A)

Non-compliance with GDPR hits the business where it matters most: how customers perceive and trust the company. When data handling is viewed as unsafe or careless, customers worry about their privacy and are more likely to leave, shop elsewhere, or reduce engagement. This erosion of trust leads to reputational damage, media scrutiny, and lasting effects on brand value and future revenue. In the long run, the reputational harm can be more costly than fines, because it lowers customer acquisition and retention and can invite further regulatory scrutiny. The other options don’t fit because non-compliance isn’t likely to boost profits, it certainly can’t have no impact, and it wouldn’t expand marketing reach—growth would come from being trusted and compliant, not from breaking the rules.

Non-compliance with GDPR hits the business where it matters most: how customers perceive and trust the company. When data handling is viewed as unsafe or careless, customers worry about their privacy and are more likely to leave, shop elsewhere, or reduce engagement. This erosion of trust leads to reputational damage, media scrutiny, and lasting effects on brand value and future revenue. In the long run, the reputational harm can be more costly than fines, because it lowers customer acquisition and retention and can invite further regulatory scrutiny. The other options don’t fit because non-compliance isn’t likely to boost profits, it certainly can’t have no impact, and it wouldn’t expand marketing reach—growth would come from being trusted and compliant, not from breaking the rules.