Company: KWIK
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002055
Chunk: 197

Company: KwikClick, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 197
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 the United States, rules and regulations governing
data privacy and security include those promulgated under the authority of the Federal Trade Commission Act, the Electronic Communications
Privacy Act, the Computer Fraud and Abuse Act, California’s CCPA (effective January 1, 2020) and CPRA (effective January 1, 2023),
and other state and federal laws relating to privacy, consumer protection, and data security. The CCPA and CPRA introduce new requirements
regarding the handling of personal information of California consumers and households, including compliance and record keeping obligations,
the right to request access to and deletion of their personal information, and the right to opt out of the sale of their personal information
and provides a private right of action and statutory damages for data breaches.

Other jurisdictions in the United States are beginning
to expand existing regulations or propose laws similar to the CCPA. If more stringent privacy legislation arises in the United States,
it could increase our potential liability and adversely affect our business, results of operations, and financial condition. Additionally,
other countries outside of Europe have enacted or are considering enacting similar cross-border data transfer restrictions and laws requiring
local data residency, and strict limitations to the processing of personal information, which could increase the cost and complexity of
delivering our services and operating our business. In the past year, for example, Brazil recently enacted the General Data Protection
Law, New Zealand recently enacted the New Zealand Privacy Act, China released its draft Personal Information Protection Law, and Canada
introduced the Digital Charter Implementation Act.

GDPR, CCPA, and similar laws coming into effect in
other jurisdictions may continue to change the data protection landscape globally, may be potentially inconsistent or incompatible, and
could result in potentially significant operational costs for internal compliance and risk to our business. Some of these requirements
may introduce friction into the buying and selling experience on our platform and may impact the scope and effectiveness of our marketing
efforts, which could negatively impact our business and outlook. Beyond GDPR and CCPA/CPRA, individual jurisdictions continue to pass
laws related to data protection, such as data privacy and data breach notification, resulting in a diverse set of requirements across
states, countries, and regions. Non-compliance with these laws could result in proceedings against us by one or more data protection authorities,
other public authorities, third parties, or individuals. Under GDPR alone, noncompliance could result in fines of up to 20 million Euros
or up to 4% of the annual global revenue of