On 13 September, EU cybersecurity leaders will present the Cyber Resilience Act, which will set common cybersecurity standards for connected devices and services such as refrigerators and televisions.
Failure to comply with these rules could result in fines of 15 million euros ($14.9 million) or 2.5% of a company’s annual worldwide turnover or being barred entirely. There is also the possibility of prohibiting or restricting the availability of the product on the national market.
This is a consequence of recent fears about cybersecurity attacks, including hackers harming companies and demanding ransoms. It is also an attempt to reduce the cost of cyber threats to businesses by up to 290 billion euros ($289.8 billion) per year, compared to compliance costs of about 29 billion euros.
The proposed legislation will allow manufacturers to assess the cybersecurity risks of their products and take appropriate corrective action.
Furthermore, companies will have to inform the EU cybersecurity agency ENISA of attacks and take corrective action within 24 hours of becoming aware of them. Importers and distributors will also be obliged to ensure that their products comply with EU rules.
The sources for this piece include an article in Reuters.