Data protection laws are based upon the Data Protection Directive that was introduced in 1995. Given the vast technological changes that have since taken place in the last twenty years’ the time has arrived to update these laws. The new General Data Protection Regulation (“Regulation”) is being finalised with a view to being introduced in 2016. The Regulation will come into force in early 2018 – two years from the date it is finally adopted.
We set out 10 of the key changes below:
The Regulation will harmonise DP laws in a single framework to apply across all EU member states. The uniformity in laws across Europe means more certainty for businesses.
- Expanded Territorial Scope (Article 3)
Businesses located outside of the EU offering goods/services to EU consumers or monitoring consumer behaviour will need to consider whether their businesses will be affected by the compliance obligations under the new Regulation and whether they may have to comply with the new Regulation. Final details are awaited.
Consent will be considered as given to data controllers by way of a clear affirmative action that establishes freely given, specific, informed and unambiguous indication by data subjects that permission to process personal data e.g. written or oral statement. Consent will involve all processing activities which are for the same purpose whereas as multiple purposes will require consent for each purpose.
- Increased Enforcement (Article 78)
Fines have increased significantly with maximum fines of €20 million or in case of an undertaking 4% of the businesses’ annual worldwide turnover whichever is greater. Supervisory authorities must ensure that the administrative fine imposed is effective, proportionate and dissuasive.
- Strict Data Breach Notification (Article 31 and 17b)
Strict breach notification measures will require all businesses to inform the supervisory authority of all data breaches that present risk to the rights and freedoms of data subjects. Breach notification must be without undue delay and, where feasible, within 72 hours.
The new Regulation proposes that data subjects affected by the breach must be notified by data controllers, unless impossible or disproportionate in effort, in circumstances where the breach could inflict serious harm.
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