Fines are the reason a transparency notice stops being a nice to have. The AI Act uses tiered penalties depending on which obligation you breach, and Article 50 transparency sits in the middle tier. For a business of any size, the numbers are large enough to make a one snippet fix look cheap.
The penalty tiers
| Type of breach | Maximum fine |
|---|---|
| Prohibited AI practices | Up to EUR 35 million or 7 percent of worldwide annual turnover |
| Other obligations, including Article 50 transparency | Up to EUR 15 million or 3 percent of worldwide annual turnover |
| Supplying incorrect information to authorities | Up to EUR 7.5 million or 1 percent of worldwide annual turnover |
For each tier, the fine is the higher of the fixed amount or the percentage of turnover. Smaller companies and startups are subject to the lower of the two figures for their tier, which softens the blow but does not remove it.
What triggers an Article 50 penalty
Failing to disclose a chatbot, not labelling a deepfake, or not flagging synthetic content where required all fall under the transparency obligations. Enforcement runs through national market surveillance authorities, so the practical risk is a complaint or an audit that finds no notice and no evidence one ever ran.
Proportionality, not a lottery
Authorities weigh the nature and gravity of the breach, whether it was intentional, and steps taken to fix it. A business that shows a clear notice and can prove it was live is in a very different position from one with nothing to point to. The evidence log matters here as much as the notice itself.
Common questions
What is the maximum fine for an Article 50 breach?
Up to EUR 15 million or 3 percent of worldwide annual turnover, whichever is higher. That is the tier for transparency and most other obligations, below the 35 million tier reserved for prohibited practices.
Do small companies face the full amount?
The Act applies the lower of the fixed sum or the percentage for SMEs and startups, and authorities weigh proportionality, but the exposure is still significant.
Does having a notice reduce the risk?
A clear notice plus proof it was shown weighs in your favour on gravity and remediation. Having nothing is the worst position.
Turn compliance risk into a one line fix
The widget keeps the notice live and current and records that it ran, so you can show good faith if anyone asks.
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