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Legislative Update: EU Issues New Data Protection Proposals
Much as was anticipated, the European Commission (the Commission) announced its long-awaited proposals on Jan. 25, 2012, on what are likely to be viewed as drastic changes to data protection law in Europe. The aim of the proposals is to make EU privacy laws fit for the 21st century, and they seek to both change the system and increase penalties for breach, with fines of up to 2% of a corporation's annual global turnover. They also seek to introduce data breach laws similar to those that exist in most U.S. states, but possibly with a requirement to report a breach within 24 hours.
The European Union (EU) introduced the initial Data Privacy Directive (the Directive) in 1995, although a number of European countries had their own data protection laws that pre-dated the Directive. The Directive sought to give each country in the EU a template to follow for its own data protection laws. Theoretically, the law in each country must include the provisions mandated by the Directive, although additional measures are also permitted over and above its requirements. Implementation and enforcement is left to each country in the EU, which has led in some instances to conflicts, complexity and inconsistencies.
The European Commission proposed a comprehensive reform of the 1995 rules to try and bring in more uniformity. The Regulation does not appear to be written in the most helpful language. The Commission's undated draft stretches to 119 pages. In addition to greater penalties and the new security breach laws, the new proposals have a number of interesting elements.
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