Category: General Data Protection Regulation

Which European DPA is in charge of supervising Amazon?

28. July 2016

In the case Verein für Konsumenteninformation v. Amazon, the Court of Justice of the European Union has to decide which Member State’s data protection law should apply in case goods are sold across national borders but within the EU. In the respective case goods are sold from a German or Luxembourgish website to an Austrian consumer.

This can be seen as one of the more significant data protection cases of 2016. The judgement will be significant due to the fact that the EU is in the process of implementing the new General Data Protection Regulation. As a consequence an European Data Protection Board (EDPB) will be established, which will represent Data Protection Authorities of different Member States. The EDPB will also be responsible for conflicts of jurisdiction. However, this process has been described as a “ (…) hyper bureaucratic procedure that will lead to more complexity and longer procedures.”

In case the Court of Justice of the European Union clarifies the jurisdiction of Data Protection Authorities, there may be less need to utilise these hyper-bureaucratic procedures. This could make the EU’s single market more efficient.

The Court of Justice of the European Union will probably rule on this matter today.

In order to prepare for the GDPR the ICO advises companies to establish internal data breach procedures

22. July 2016

The ICO has advised organisations to implement internal data breach procedures, which should be encouraged by employee trainings, in order to be prepared as soon as the General Data Protection Directive (GDPR) comes into effect in 2018.

Therefore, the recommendation made by the ICO in terms of its breach notification recommendation instruct companies to be compliant from the first day the GDPR is implemented. Furthermore, the recommendation states that “You should make sure that your staff understands what constitutes a data breach, and that this is more than a loss of personal data” and goes on by saying that “You should ensure that you have an internal breach reporting procedure in place. This will facilitate decision making about whether you need to notify the relevant supervisory authority or the public. In light of the tight timescales for reporting a breach, it is important to have robust breach detection, investigation and internal reporting procedures in place.” On top of this, the ICO points out that companies will not have much time to notify the authorities of any data breach due to the fact that article 33 of the GDPR requires notification to take place “without undue delay and, where feasible, not later than 72 hours after having become aware of it (…) unless the personal data breach is unlikely to result in a risk to the rights and freedoms of natural persons”.

A personal data breach is defined as “a breach of security leading to the accidental or unlawful destruction, loss, alteration, unauthorised disclosure of, or access to, personal data transmitted, stored or otherwise processed”.

 

75.4% of Cloud Apps are not compliant with GDPR

18. July 2016

According to the Netskope Cloud Report from June 2016, almost 75.4% of the cloud apps are not compliant with the GDPR. The main reason for this incompliance is the lack of awareness that most organizations have about the amount of cloud apps being used at the company.

The compliance evaluation was based on eight aspects of the GDPR: geographic requirements, data retention, data privacy, terms of data ownership, data protection, data processing agreement, auditing and certifications.

Compliance with the GDPR involves not only that customers as data controllers implement the provisions of the GDPR accordingly, but also that cloud apps vendors (as data controllers) are also compliant. This compliance requirement of the data processor is one of the new requirements that the GDPR imposes. Data processors are also subject to strict data processing requirements and are liable for breach of their obligations. This way, customers are liable for the use they make of the cloud apps and cloud vendors are liable for inherent security and enterprise-readiness.

The report reveals that the main incompliances relate to the data export requirements after termination of service, to excessively long retention periods and to data ownership terms. Moreover, malware also represents an increasing problem regarding cloud apps.

Upon the entry into force of the GDPR, companies shall be able to

  • Identify existing cloud apps in their organization and analyze the risks involved
  • Identify cloud apps storing sensitive data
  • Adopt measures in order to be compliant according to the eight main aspects mentioned above
  • Identify cyber threats and implement adequate measures to safeguard personal data

The future of privacy rules after UK´s referendum to leave the EU

27. June 2016

On the 23rd June, UK celebrated a referendum to vote about UK´s EU membership. About 52% of the participants, voted for leaving the EU. The process of withdrawal from the EU will have to be done according to Art. 50 of the Treaty on the European Union and will take about two years until the process is completed.

The withdrawal of the UK´s membership will also have an impact on data protection rules. First of all, the GDPR will enter into force on the 25th May 2018, so that by this time, the UK will still be in process to leave the EU. This means that UK businesses will have to prepare and be compliant with the GDPR.

Additionally, if UK businesses trade in the EU, a similar framework to that of the GDPR will be required in order to carry out data transfers within the EU member states. The British DPA, ICO, published a statement regarding the existing data protection framework in the UK. According to ICO, “if the UK wants to trade with the Single Market on equal terms we would have to prove adequacy – in other words UK data protection standards would have to be equivalent to the EU´s General Data Protection Regulation framework starting in 2018”.

Currently, the GDPR is the reference in terms of data protection and organizations will have to prepare to be compliant and, even if the GDPR is not applicable to UK, a similar framework should be in place by the time the GDPR enters into force.

French DPA launches public consultation on GDPR

21. June 2016

In June 2016, a public consultation process about the GDPR was opened by the French DPA (CNIL). The consultation is based on the topics that the WP 29 identified as having priority in its action plan for the implementation of the GDPR, published beginning 2016.

The consultation aims at encouraging stakeholders to formulate questions regarding the GDPR in order to identify potential interpretation difficulties. Once the main questions and difficulties have been addressed, the WP 29 will issue guidelines regarding the relevant topics. The CNIL also offers the possibility to formulate questions about other topics, which are not directly mentioned in the consultation.

The main topics that are object of the current consultation are the institution of the DPO, Privacy Impact Assessments (PIA), data protection certifications and the right to data portability.

The consultation is opened until the 15th July 2016 and stakeholders can participate through the CNIL´s website. After that, the French DPA will publish a summary with the contributions.

Accountability initiative by the EDPS: achieving compliance with the GDPR

8. June 2016

The EDPS announced yesterday the launch of a new initiative that may help EU institutions, public bodies and private organizations to be compliant and prepare for the GDPR. This initiative relates to the accountability principle, which is explicitly mentioned in the GDPR. Accountability regarding the processing of personal data means:

  • Implementing policies within the organization in order to achieve transparency
  • Training employees and persons within the organization with regard to the implementation of the policies
  • Monitoring the implementation of the policies
  • Establishing procedures in order to identify incompliances and act against data breaches

The EDPS states that the accountability principle involves a culture change within organizations and means the promotion of sustainable data processing. This means that organizations should assess the fairness and legality of complex data processing operations. This involve that both, public bodies and private organizations, should develop a risk management strategy that addresses their specific needs, so that they are compliant with the GDPR upon its entry into force in May 2018.

This initiative has been firstly implemented at the EDPS institution itself by using questionnaires addressed to the Supervisors, the Director, the staff responsible for processing operations and the DPO. The implemented actions were also documented and followed up on a regular basis. The questions aimed at ensuring a control over the processing of personal data and the lawfulness of the processing.

The role of the DPOs under the new GDPR: the German reference

7. June 2016

The new GDPR, which will enter into force in May 2018, updates the current European Data Protection legislation. One of the key aspects of the Regulation is the obligation to appoint a Data Protection Officer (DPO) in the following cases:

  • If the processing is carried out by a public authority, except court acting in their judicial capacity
  • If the core activities of the controller or the processor consist of processing operations which according to their nature or scope require regular and systematic monitoring of data subjects on a large scale or
  • If the core activities of the controller or the processor consist of processing on a large scale of sensitive data

Currently, several jurisdictions mention the possibility to appoint a DPO, but Germany is the only EU member State that imposes the obligation to appoint a DPO if more than nine people within an organization handle with personal data. The DPO can be a member of the organization or an external expert.

According to German Data Protection law, DPOs are appointed by the management of the organization but fulfill their duties without being subject to any instructions of the data controller. Moreover, they have the obligation to report the management regarding the compliance status of the organization and, even if they recommendations are not followed, the DPO has fulfilled his/her duty. This DPO culture in Germany means also that not only people with legal backgrounds are DPO; furthermore, the role of the DPO is assumed by persons with different backgrounds, for example by engineers or HR employees that have been given this responsibility.

Thomas Spaeing, CEO of the German Association of Data Protection Officers, remarks the importance that the appointed person knows the processes and organization of the company and that he/her can integrate the legislation with the organizational data processing activities. The DPO should be seen as a person who helps businesses implementing data protection processes in interest of both, the data subjects and the company itself.

The GDPR mentions the possibility to appoint either an external or an internal DPO and describes their position in similar terms to those existing under German Data Protection law. In Germany, this will not mean a greater change in the local legislation, but other countries who do not even currently regulate the institution of the DPO, will have to make any necessary changes to be compliant with the requirements of the GDPR until May 2018.

GDPR published in the Official Journal of the EU

9. May 2016

After the EU Parliament voted the final draft of the GDPR on April 14th and the EU Commission signed it, the GDPR was finally published in the Official Journal of the EU on May 4th. The GDPR will harmonize several aspects of data protection in order to achieve a higher data protection level within the EU.

The Regulation will enter into force 20 days after publication in the Official Journal of the EU but will be directly applicable two years after its entry into force, this is ending May 2018. This means that organizations have two years to implement the provisions of the GDPR and be compliant.

About 28,000 data protection officers are requiered to be appointed under the GDPR

20. April 2016

Article 37 of the GDPR states that data controllers and processors of personal information are required to appoint a data protection officer in cace:

(a)  The processing is carried out by a public authority or body (except courts); or

(b)  The controller’s or processor’s “core activities” require “regular and systematic monitoring of data subjects on a large scale” or consist of “processing on a large scale of special categories of data.”

A data protection officer is able to be appointed by a group, public authorities or individual legal entity. Article 39 of the GDPR requires that a data protection officer is “designated on the basis of professional qualities and, in particular, expert knowledge of data protection law and practices”. Compliance, trainings on how to process data according to the law and the communication with the national authorities are part of the task area of a data protection officer.

Therefore, due to the GDPR organizations worldwide have to prepare for a number of new requirements in terms of data collection and processing. One particular requirement is that certain organizations will now have to appoint a data protection officer according to Arcticle 37 of the GDPR, as mentioned above. Research indicates the number of data protection officers required to be appointed under the GDPR will be about 28,000. This is an estimate based on official statistics regarding both public and private sector data controllers in the EU and taking further assumptions into account such assuming that US companies obliged to comply with the GDPR would also require a data protection officer, and of those companies who self-certified under Safe Harbor are likely included in that number.

Parliament finally approves of GDPR

15. April 2016

The European Union will have a new data protection regulation. After four years of ups and downs, the European Parliament came to an agreement on thursday in a plenary vote of support for the GDPR and the companion Data Protection Directive for policing and the judiciary.

The German MEP Jan Philipp Albrecht commented that “the General Data Protection Regulation makes a high, uniform level of data protection throughout the EU a reality,” and added that, “the regulation will also create clarity for businesses by establishing a single law across the EU. The new law creates confidence, legal certainty, and fairer competition.”

In order to give businesses and organizations time to adjust their compliance and data protection issues, the new GDPR will officially become effective in two years. The GDPR includes provisions such as the impositions of a clear and affirmative consent for processing personal data and a clear privacy notice. Further, there will be obligations concerning the breach of notification and the implementation of potential fines up to 4 percent of a company’s global annual turnover.

European Commission First Vice-President Frans Timmermans, Vice-President of the Digital Single Market Andrus Ansip, and Commissioner for Justice, Consumers and Gender Equality Vera Jourova welcomed the new regulation as it will “help stimulate the Digital Single Market in the EU by fostering trust in online services by consumers and legal certainty for businesses based on clear and uniform rules.” They went on commenting the Data Protection Directive for police and the judiciary, saying that it “ensures a high level of data protection while improving cooperation in the fight against terrorism and other serious crime across Europe.”

Therefore, in order to build public awareness of the reforms “the EU will launch public awareness-raising campaigns about the new data protection rules” Albrecht and Jourova, along with MEP Marju Lauristin commented and added that “the European Commission will work closely with member states, the national data protection authorities, and stakeholders to ensure the rules will be applied uniformly across the EU.”

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