The EU will be proposing a Cyber Resilience Act in September 2022 that will ensure that smart devices connected to the internet, or better known as IoT, such as fridges, TVs will have to comply with tough European Union cyber security rules or face fines and banning.
The European Commission document showcases concerns over cybersecurity attacks in the recent years. Â The rules could cut the cost of cyber incidents to companies by as much as 290 billion euros ($289.8 billion) annually versus compliance costs of about 29 billion euros as per the document.
Manufacturers will have to assess the cybersecurity risks of their products and take appropriate procedures to fix problems. The companies will have to notify EU cybersecurity agency ENISA of incidents within 24 hours once they are aware of issues, and take measures to tackle the problems.
Importers and distributors will be required to verify that products conform to EU rules. If companies do not comply, national surveillance authorities can “prohibit or restrict that product being made available on its national market, to withdraw it from that market or recall it”, the paper said.
The cost of fines can reach 15 million Euros or 2.5 percent of their global turnover.
