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Draft data protection regn 2012
Draft data protection regn 2012
Draft data protection regn 2012
Draft data protection regn 2012
Draft data protection regn 2012
Draft data protection regn 2012
Draft data protection regn 2012
Draft data protection regn 2012
Draft data protection regn 2012
Draft data protection regn 2012
Draft data protection regn 2012
Draft data protection regn 2012
Draft data protection regn 2012
Draft data protection regn 2012
Draft data protection regn 2012
Draft data protection regn 2012
Draft data protection regn 2012
Draft data protection regn 2012
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Draft data protection regn 2012

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Discussion of the main elements of the draft Data Protection Regulation: what difference will it make to industry practice and user rights to control their data?

Discussion of the main elements of the draft Data Protection Regulation: what difference will it make to industry practice and user rights to control their data?

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  • 1. First they came for cookies, then theycame for Facebook? Potential Pitfalls ofUpcoming EU Data Protection Reform Lilian Edwards Professor of E-Governance, Strathclyde Law School SSCL, MARCH 2012 Lilian.edwards@strath.ac.uk Pangloss: http://blogscript.blogspot.com @lilianedwards
  • 2. Hard times for the dataindustries?• Revision of art 5(3) of the Privacy and Electronic Communications Directive 2002 to require “informed opt- in”?• “Please kill this cookie monster to save EU’s websites”• UK ICO “year of grace” since May 2011 – or of confusion?• US: FTC settlement with Google, Oct 2011 (Google Buzz); FB over “deceptive practices”, November 2011.
  • 3. Why? .. Breaking news!!.. C4, May 2010
  • 4. 22 May2011
  • 5. Difficult priorities & conflictsfor DP regulation..• “..Thats why I say that data is the new oil for the digital age. How many other ways could stimulate a market worth 70 billion euros a year, without spending big budgets? Not many, Id say.” N Kroes, March 2012• “Isn’t it sexy to be a data protection officer now? The staggering revelations at HMRC have propelled DP out of the shadowy domain of geeks and anoraks and into the bright sunlight of public debate.” OUT-Law, 2007• “Rapid technological developments have brought new challenges for the protection of personal data. The scale of data sharing and collecting has increased dramatically. Technology allows both private companies and public authorities to make use of personal data on an unprecedented scale in order to pursue their activities…Building trust in the online environment is key to economic development. Personal data protection therefore plays a central role in the Digital Agenda for Europe..” Draft DPR introduction, Jan 2012
  • 6. EC citizen attitudes towards dataprivacy – EuroBarometer 2011Attitudes towards data protection• 60% of Europeans who use the internet (40% of allEU citizens) shop or sell things online and use socialnetworking sites.• People disclose personal data, including biographicalinformation (almost 90%), social information(almost 50%) and sensitive information (almost10%) on these sites.• 70% said they were concerned about how companiesuse this data and they think that they have onlypartial, if any, control of their own data.• 74% want to give their specific consent before theirdata is collected and processed on the Internet.
  • 7. Reform of the DPD? Nov 2010 consultation -> Jan 2012 draft Regulation• Main issues • Combine rules on DP police & LEAs sector with existing rules for “civilian” data controllers? (in fact kept separate) • Address globalisation better – data flows out of EU • Improve harmonisation within EU (binding interpretation by Art 29 WP?) • Strengthen Data Subject’s rights/ enhancing control over PD eg, online subject access, clarifying definitions of consent • Reduce red tape for Data Controllers – multinationals only to be regulated by 1 EC DPA - saving 2.3 billion Euros for EU industry - quid pro quo? • -> Make DCs more accountable, eg, must have a CPO; audit trails of processing; “privacy by design” (?) • Clarify rules on jurisdiction, applicable law and DP (eg Facebook? Google?)
  • 8. New Regulation? – 1-definitions – personal data• New Art 2:• data subject means an identified natural person or a natural person who can be identified, directly or indirectly, by means reasonably likely to be used by the controller or by any other natural or legal person, in particular by reference to an identification number, location data, online identifier or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that person;• personal data means any information relating to a data subject;• Will the UK definition remain compatible? “)• cf “Personal Data” is data which relates to a living individual who can be identified from that data, or with other data likely to be held by data controller• Cf Durant• FTC/Danish idea of “singling out” – widening existing EU definition?• Will anonymised profiles become “personal data”? User rights of access, rectification, deletion? Security, retention?
  • 9. New Regulation – 2; definitions- data processors• Considerable redistribution of responsibilities between data controllers and data processors. Why? the cloud.• Art 29 WP on SWIFT case – Opinion 10/2006• Held : SWIFT not just agent of Belgian banks (processor) but itself controller• Art 29 WP Report 169, Feb 2010, definition of processor vs controller – distinction based on “the possibility of pluralistic control (“which alone or jointly with others”), and.. the essential elements to distinguish the controller from other actors (“determines the purposes and the means of the processing of personal data”). Factual, not a legal choice made by DC etc.
  • 10. The cloud, accountability andcontroller/processor• New art 26 Article 26 expands on old art 17(2) adding new elements, including that a processor who processes data beyond the controllers instructions is to be considered as a joint controller• Industry fearful of need to renegotiate all delegation contracts to cloud providers.• New art 28 introduces obligation for controllers and processors to maintain documentation of the processing operations under their responsibility, replacing general notification duty (see later)
  • 11. New Regulation? – 3- DSRights + the Right to Forget• Right to forget – new art 17, rec 45-46• Right to “obtain from the DC the erasure of *their+ personal data” but also to have no further “dissemination” of it - especially re data exposed when a child• Would a host have to go track down everywhere on the web the data was held or linked to and delete it? Responsibilities of search engines? Google cache? See new art 17(2)• Balance with freedom of expression? With proof?• Can you be a “data controller” for these purposes and yet not a “publisher” (Tamiz v Google Inc [2012] EWHC 449 (QB)) re Google Blogger)• What about exemptions from liability for hosting providers and mere conduits under EC E-Commerce Directive 2000? Currently DP not included.• Balance with “historical, statistical and scientific research”? (cf Wikipedia on criminal convictions)• Restricting access to data rather than deleting may be interim solution if dispute
  • 12. “Foggy thinking about the rightto oblivion”• Peter Fleischer, Google, March 9 2011• “More and more, privacy is being used to justify censorship. In a sense, privacy depends on keeping some things private, in other words, hidden, restricted, or deleted. And in a world where ever more content is coming online, and where ever more content is find- able and share-able, its also natural that the privacy counter- movement is gathering strength. Privacy is the new black in censorship fashions. It used to be that people would invoke libel or defamation to justify censorship about things that hurt their reputations. But invoking libel or defamation requires that the speech not be true. Privacy is far more elastic, because privacy claims can be made on speech that is true.”• OTOH - The “PR” society and super injunctions..• OTOtherH - Cf to Rehabilitation of Offenders? In practice how French/Spanish laws have been used• Should main concern not be mundane profile data – not big historical issues?
  • 13. More new DS rights..• Right to access your data electronically if it is held electronically – ie “online subject access” (new art 10)• Right to data portability, ie, get a copy of the data to take elsewhere (new art 16) - “in an electronic format which is commonly used” ?• Right to object not just to use of data for direct marketing but to decision solely based on automated profiling (new art 20)• Insurance? Employment? Working with kids? “Location, health, personal preferences, reliability or behaviour”. The new “credit checking”.• Note this right does NOT apply to police/LEA profiling – separate Directive re LEA use of data/profiles – may not pass.• However (both art 20, Draft Reg; 9, Draft Dir) - DS cannot be automatically evaluated by profile (with or without consent) by police solely on basis of sensitive personal data – expanded to include genetic and biometric data
  • 14. New Regulation? – 4-enforcement• Big headline figures - Penalties of up to €1 million or up to 2% of the global annual turnover of a company.• Why not disqualification of directors, as per company fraud? Jail?• Cf UK - DPA s55A (but not negligent breaches) – now max £500,000 fine, jail sentences still not implemented. In 2011, 7 cos fined – average £77K.• Cf USA – no immediate fine but FTC would fine FB/Google $16,000/day per violation of agreed privacy settlements• Will EC DPAs have the resources to go after these big enforcement actions?• Will multinationals arrange to have a “compliant” DPA as their sole regulator – UK/Ireland – race to the bottom or “corporation tax” opportunity?• Absence of technological knowledge by regulators?
  • 15. Security breach notification• Mandatory security breach notification proposed (new arts 30-32).• Already introduced for telcos/ISPs in PEC Dir art 17(1)• Aim is naming and shaming; also notice to public enables them to get remedies, take protective steps• Details are controversial: what triggers; how long to fix before notifying; how long to advise (24 hours?!) ; to whom? – police/Inf Commr; data subjects affected.• No notification if data was encrypted (?)• Not to “public as whole”• Breach ennui? US experience not that helpful• But Sony didn’t notify breach of 10 m people for a week..• What of collective action rights by hacked DS victims? Depends on other EU initiatives currently mired in doubt.
  • 16. Conclusion?• “We have a tough regulation here – because there ARE big problems.• How do you comply with regulation?• This is where the real problem seemed to come for me. All the businesses want to know how to comply with regulations – but they don’t seem to understand the real point. These kinds of regulations aren’t really supposed to be about ticking boxes, or finding the right words to describe your activities in order to comply with the technical details of the relevant laws. Nigel Parker from Allen and Overy gave a very revealing and detailed picture of how he had to navigate some of his multi-national clients through the complexities of the different international regulations concerning data protection – but he seemed not to want to offer one particular piece of advice. He didn’t seem to want to tell his clients that they might well have to change what they do – or perhaps even decide not to do it. The purpose of the very existence of these regulations are to makebusinesses (and governments) change what they do, or at least how they do it.”• Paul Bernal’s blog, March 8 2012. (paulbernal.wordpress.com)• ?

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