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EU Parliament Overhauls Consumer Data Protection

By Angela Hunt
November 30, 2013

Everyone, especially corporate leaders, got a little paranoid last year when National Security Agency (NSA) whistleblower Edward Snowden pulled the alarm on U.S. surveillance. See, “NSA Revelations Boost Corporate Paranoia About State Surveillance,” Financial Times, (registration req'd.). That paranoia turned into palpable risk after reports emerged of the NSA tapping the phones of German Chancellor Angela Merkel and executives at Brazilian oil company. See, “United States Tracked Merkel's Phone Since 2002: Report.”'

Now, European countries have committed to overhauling their archaic data protection standards to mitigate the risks of economic espionage, and plan to include provisions to protect consumer information.

The European Parliament's civil liberties committee voted to upgrade current standards to ensure laws are “up to the challenges of the digital age,” according to Bryan Glick for Computer Weekly. See, “MEPs Vote to Tighten Data Protection Rules After Internet Surveillance Revelations.”'

Although member states could water down the measure, Glick writes, the committee said it wants to send a clear signal that major change is needed. “The ball is now in the court of member state governments to agree [on] a position and start negotiations, so we can respond to citizens' interests and deliver an urgently needed update of EU data protection rules without delay,” Jan Albrecht of the European Parliament told Glick.

The committee has said companies will be required to obtain “clear permission” from individual consumers before sending their data overseas. The regulations also provide consumers with the right to have their personal data erased by any company that holds it, according to Glick. Noncompliant businesses could face fines of up to 100 million ($160.7 million USD) or up to 5% of annual worldwide turnover, whichever is greater, the committee said in a statement.


Angela Hunt is a freelance writer based in New York City who writes for e-Commerce Law & Strategy's ALM sibling Law Technology News.

Everyone, especially corporate leaders, got a little paranoid last year when National Security Agency (NSA) whistleblower Edward Snowden pulled the alarm on U.S. surveillance. See, “NSA Revelations Boost Corporate Paranoia About State Surveillance,” Financial Times, (registration req'd.). That paranoia turned into palpable risk after reports emerged of the NSA tapping the phones of German Chancellor Angela Merkel and executives at Brazilian oil company. See, “United States Tracked Merkel's Phone Since 2002: Report.”'

Now, European countries have committed to overhauling their archaic data protection standards to mitigate the risks of economic espionage, and plan to include provisions to protect consumer information.

The European Parliament's civil liberties committee voted to upgrade current standards to ensure laws are “up to the challenges of the digital age,” according to Bryan Glick for Computer Weekly. See, “MEPs Vote to Tighten Data Protection Rules After Internet Surveillance Revelations.”'

Although member states could water down the measure, Glick writes, the committee said it wants to send a clear signal that major change is needed. “The ball is now in the court of member state governments to agree [on] a position and start negotiations, so we can respond to citizens' interests and deliver an urgently needed update of EU data protection rules without delay,” Jan Albrecht of the European Parliament told Glick.

The committee has said companies will be required to obtain “clear permission” from individual consumers before sending their data overseas. The regulations also provide consumers with the right to have their personal data erased by any company that holds it, according to Glick. Noncompliant businesses could face fines of up to 100 million ($160.7 million USD) or up to 5% of annual worldwide turnover, whichever is greater, the committee said in a statement.


Angela Hunt is a freelance writer based in New York City who writes for e-Commerce Law & Strategy's ALM sibling Law Technology News.

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