Earlier quoted context omitted.
Because the goal is compliance, not to put companies out of business. When the laws were first enacted everybody was screaming that it was just to put companies out of business. Now they are wondering why the small initial fines. It's simple: change your ways and use the initial fines as a wake up call. If you then do not wake up and persist the fines will get heavier and heavier until you will pay attention. A Dutch…
Imagine if we lived in a society where you were given a small fine for the first time you commit murder and then life imprisonment for the second offence. This may lead people to believe that murder is a serious but forgivable offence when it is not. That’s my first argument: small fines play down the seriousness of the “crime”. My second argument is the efficiency of using capitalism to fight capitalism. Take money…
(2) small fines do not play down the seriousness of the transgression (which is the word I think you should be using for instances like this). They merely indicate that you should clean up your act assuming no real harm has been done. In some cases the regulators have immediately resorted to fines, and quite large ones as well if they felt that the case warranted it. They do have that option.
But putting companies out of business was never the goal, contrary to what a lot of alarmist people were screaming when the law went into force. Also, over time as more and more companies have been fined I would expect that the initial fines will go up because claiming ignorance really isn't an option any more. Some comments in this thread are particularly worrisome in that light, it appears that some people still don't get it and they are in positions where they really should know better.
Turning data into a liability rather than an asset is the long term outcome. This will take time, and when it happens I'll be that much happier. Every company will have to seriously weigh the price of holding on to some datum vs the price of losing it.