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<b><i>Online Extra:</b></i> New German Privacy Law Targets U.S. Companies
U.S. companies need to be aware of a new German data protection measure that came into effect in late February. The law, aimed directly at companies based outside Germany, allows German consumers and business associations to enforce the country's data protection laws.
The legislation expands the enforcement abilities of private citizens. Before its enactment, German consumers and business protection associations could only allege violations of the country's consumer protection and unfair competition laws. But now they can also enforce data protection laws directly.
'The new powers include issuing cease-and-desist letters (which is a recommended step prior to initiating litigation) and seeking interim injunctions for alleged data protection violations,' according to Christoph Ritzer and Sven Jacobs of Norton Rose Fulbright, who blogged about the ruling'here.
If your company handles data in Europe, now is a good time to beef up compliance efforts. 'In the past, data protect authorizes [in Germany] often lacked the resources to enforce data protection laws against a large number of companies,' Ritzer and Jacobs write. 'With the new law, we expect consumer organizations to take an active role in privacy enforcement.'
Marlisse Silver Sweeney'writes for'Corporate Counsel, an ALM sibling of'e-Commerce Law & Strategy. Follow her on Twitter'@MarlisseSS.
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