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The European Commission has prepared a set of questions and answers as well as a flowchart to help companies understand when they can and when they cannot send personal data abroad. The European Union's Data Protection Directive protects the personal data of EU citizens from abuse and misuse. Organisations have a duty to protect it, and that means ensuring that it is not sent to countries with poor data protection. The Directive says that data can be sent to another country "only if... the third country in question ensures an adequate level of protection". Only a handful of countries have been deemed acceptable destinations for data by the European Commission. Those are Switzerland, Canada, Argentina, the Bailiwick of Guernsey, the Isle of Man, the Bailiwick of Jersey and the US, when the data's treatment is in the Safe Harbor Privacy Principles of the US Department of Commerce The advice has been prepared by the Data Protection Unit of the Directorate-General for Justice, Freedom and Security at the European Commission. It is designed particularly to help small and medium sized companies to understand the law when it comes to transferring personal data outside of the European Economic Area (EEA). The guidance points out that in order for a transfer to be legal, data has to be properly handled in the first place according to the data protection laws of the country where the processing organisation is established. If the transfer is to a country not listed as having adequate data protections in place, a transfer can still take place, the guidance says, but only if "the data controller offers 'adequate safeguards with respect to the protection of the privacy and fundamental rights and freedoms of individuals and as regards the exercise of the corresponding rights'," says the guidance, quoting the Directive. "These safeguards may result from appropriate contractual clauses, and more particularly from standard contractual clauses issued by the Commission," it sai

European Union's move indicates growing government concern over how Internet companies are using individuals' private data The European Commission began legal action against the U.K. Tuesday over its failure to protect Internet users from Phorm -- a covert behavioral advertising technology tested by the U.K.'s biggest fixed line operator, BT, in 2006 and 2007. The move signals growing concern in Brussels over the way new Internet-based technologies are using people's personal data. In addition to taking legal action against the U.K., the Commission also issued a general warning to all 27 E.U. countries to uphold privacy laws, especially regarding social-networking Web sites and users of RFID (radio frequency identification) technologies. In Canada, the federal government has even proposed a legislation that will provide law enforcement agents sweeping powers to obtain user information from ISPs. The Commission, the executive body of the European Union responsible for upholding laws, said the U.K. had failed to enforce E.U. data protection and privacy rules, because broadband Internet subscribers were not informed that their browsing was being tracked.

The European Commission on Tuesday set a code of conduct for companies using RFID (radio frequency identification) tags that it hopes will safeguard citizens' privacy and allow the quick rollout of the new technology. Around 2.2 billion RFID tags were sold worldwide last year, a third of them in Europe, and were installed in a wide range of products including shipping containers and smart cards used in highway toll booths. The Commission expects the use of RFID tags to grow to five times the current level over the next decade, as tags are added to common consumer items such as bus passes, refrigerators and even clothes. There is "clear economic potential" in using RFID chips to allow communication between objects, said information society commissioner Viviane Reding in a statement. But she added that European citizens "must never be taken unawares by the new technology."

The European Commission started legal action against Britain on Tuesday for what the EU executive called a failure to keep people's online details confidential. EU Telecoms Commissioner Viviane Reding said the action related to how Internet service providers used Phorm (PHOR.L) technology to send subscribers tailor-made advertisements based on websites visited. Reding said Internet users in Britain had complained about the way the UK applied EU rules on privacy and electronic communications that were meant to prohibit interception and surveillance without the user's consent. "Technologies like Internet behavioural advertising can be useful for businesses and consumers but they must be used in a way that complies with EU rules," Reding said in a statement. "We have been following the Phorm case for some time and have concluded that there are problems in the way the UK has implemented parts of the EU rules on the confidentiality of communications," Reding said. She called on Britain to change its national laws to ensure there were proper sanctions to enforce EU confidentiality rules. Unless Britain complies, Reding has the power to issue a final warning before taking the country to the 27-nation EU's top court, the European Court of Justice. If it rules in favour of the European Commission, the court can force Britain to change its laws. (Reporting by Huw Jones, editing by Dale Hudson)

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The European Commission threatened Britain with sanctions on Tuesday for allowing an Internet service provider to use a new advertising technology to track the Web movements of customers. The European telecommunications commissioner, Viviane Reding, said that use of a tracking tool created by Phorm violated European privacy laws. The country's largest service provider, BT, acknowledged last April that it used the tool without customers' consent in 2006 and 2007, Ms. Reding said. "European privacy rules are crystal clear: a person's information can only be used with their prior consent," Ms. Reding said. The case could become a test for the limits of ads that aim at online behavior. Supporters of the practice say it has the potential to transform advertising by allowing marketers to show Internet users only ads that are considered relevant to them, based on their surfing habits.

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The use of data in the online world is being governed by the rules of the "Wild West," the European Commission will argue this week, in the clearest warning yet to Internet companies to curb how they use the information they collect on users. With concern growing over the amount of data gathered by the biggest players on the Internet, the comments will challenge the industry to agree on new principles for its use - or face a clampdown. Meglena Kuneva, the European consumer affairs commissioner, will argue that basic consumer rights are being violated by companies that profile and target consumers, according to a draft of a speech seen by the International Herald Tribune. "From the point of view of commercial communications," the draft speech reads, "the World Wide Web is turning out to be the world 'Wild West."' Kuneva is to deliver the speech to a meeting of around 200 industry and consumer representatives on Wednesday. Her comments reflect the anxiety of regulators on both sides of the Atlantic about the commercial use of information garnered through online tracking made possible via "cookies" - small files dropped into users' computers by the Web sites they visit. These cookies help companies take note of users' habits and can be sold to advertisers to help them target their marketing efforts. But their use raises serious questions about who knows which sites we visit and what they do with that information. In the United States, the chairman of the Federal Trade Commission, Jon Leibowitz, warned recently that, if the industry does not show it can protect users' privacy, it will invite legislation from Congress and a more regulatory approach from the F.T.C.

"Recently, the Federal Trade Commission (FTC) has gotten tough with US companies that have not lived up to their own privacy promises to European consumers. In particular, it has filed complaints against seven US companies that claimed that they were adhering to the European Union's Safe Harbor Program, but allegedly were not. (The FTC issues or files a complaint when it has "reason to believe" that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaints themselves are not a finding or ruling that the named parties have violated the law.) By taking action, the FTC has shown that the Safe Harbor program, as applied to US companies, is not a set of empty promises. Rather, the FTC is keeping watch over businesses and will sanction those that misrepresent their own policies. In this column, I will explain how the Safe Harbor program works, and also discuss the recent FTC enforcement actions."

Privacy rights are accepted and, generally, honored in Europe. The wealth - literally and figuratively - of personal information made available through the internet staggers the imagination. Staggering, too, is the prospect of privacy rights being trampled. EC Consumer Protection Commissioner Meglena Kuneva has a bone to pick with internet snooping. And she's launching an investigation into deep data mining. In an official statement (to be released March 31) she will outline concerns of vague and misleading 'term of use' for access to Web sites that can breach EC privacy rules. Commissioner Kuneva was born and raised in Bulgaria during a time when snooping on people was common, legal and nasty. The European Parliament (EuroParl) voted (March 27) overwhelmingly for recommendations in a report linking data surveillance, advertising and cybercrime. The report recommends safeguards for the privacy rights of internet users. The EuroParl called for "making use of existing national, regional, and international law." The MEPs raised the "imbalance of negotiating power between (internet) users and institutions." Internet users, said the MEPs, have the right to "permanently delete" personal details. Facebook's recent change in 'terms of use' allowing it to retain personal information brought a firestorm of criticism and the social networking portal backtracked. And the EC was watching. "It wasn't regulators who spotted the proposed change of terms at Facebook, it was one of the 175 million users," said Commissioner Kuneva's spokesperson Helen Kearns. Collecting and analyzing profile data is big business. It is "the new petroleum of the Internet world," said Ms Kearns, quoted in PC World (March 30). "If you are happy trading your data that's fine, but you should at least know how valuable it is." As Google and Microsoft have learned European Commission rules, unlike American rules, tend to set a low bar for compliance. The former pr

Tomorrow is Data Protection and Privacy Day. Events around the world will mark the occasion. In Brussels, the European Parliament, European Commission and EDPS will host a variety of workshops and the winners of the "Think Privacy," competition will be unveiled. In Canada, events will be held in Newfoundland and Labrador, Ontario, Alberta and elsewhere, with regulators and companies hosting various forums. For a comprehensive list of global events, visit the Data Privacy Day Web site. After hours, privacy pros will gather in cities across the world for IAPP Privacy After Hours events. Click here to find an event near you.

Data Protection & Privacy Day Tomorrow

Protecting National Security and Privacy: Approaches of New Administrations in the U.S. and Europe. In celebration of Data Privacy Day 2009, The Triangle Center on Terrorism and Homeland Security, along with Intel Corporation, hosted a Panel Discussion on The Future of Privacy and National Security. Participants included leading experts from the United States Departments of Homeland Security, Justice and State, the European Commission, the Council of European Union, and privacy experts from the private sector and academia. A PODCAST of this event is now available on iTunes U.

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The Office of the Privacy Commissioner of Canada (OPC) has developed these guidelines to explain how the Personal Information Protection and Electronic Documents Act (PIPEDA) applies to transfers of personal information to a third party, including a third party operating outside of Canada, for processing. As the legislation itself states, PIPEDA is intended to "support and promote electronic commerce by protecting personal information that is collected, used or disclosed in certain circumstances…" This acknowledges that proper protection of personal information both facilitates and promotes commerce by building consumer confidence. Today's globally interdependent economy relies on international flows of information. These cross-border transfers do raise some legitimate concerns about where personal information is going as well as what happens to it while in transit and after it arrives at some foreign destination. Consumer confidence will be enhanced, and trust will be fostered, if consumers know that transfers of their personal information are governed by clear and transparent rules. There are different approaches to protecting personal information that is being transferred for processing. European Union member states have passed laws prohibiting the transfer of personal information to another jurisdiction unless the European Commission has determined that the other jurisdiction offers "adequate" protection for personal information.

"On October 6, 2009, the Federal Trade Commission ("FTC") announced proposed settlement agreements with six companies over charges that they falsely claimed membership in the U.S. Department of Commerce Safe Harbor program. In six separate complaints, the FTC alleged that ExpatEdge Partners LLC, Onyx Graphics, Inc., Directors Desk LLC, Collectify LLC, and Progressive Gaitways LLC deceived consumers by representing that they maintained current certifications to the Safe Harbor program when such certifications had previously lapsed. The terms of the proposed settlement agreements prohibit the companies from misrepresenting their membership in any privacy, security or other compliance program. The six enforcement actions are significant as they mark a considerable uptick in the FTC's enforcement related to the Safe Harbor program. The FTC recently brought its first enforcement action relevant to the program, which is detailed in our post titled FTC's First Safe Harbor Enforcement Action. The European Union Data Protection Directive requires EU Member States to implement legislation that prohibits the transfer of personal data outside the EU unless the EU has made a determination that the laws of the recipient jurisdiction are substantially equivalent to those of the EU, and thus provide "adequate" protection for personal data. Because the EU has determined that laws of the United States do not meet its adequacy standard, the U.S. Department of Commerce and the EU developed the Safe Harbor Framework, which went into effect in November 2000. The Safe Harbor Program allows participating U.S. companies under the jurisdiction of the FTC or the U.S. Department of Transportation to transfer personal data lawfully from the EU. To join the Safe Harbor, a company must self-certify to the U.S. Department of Commerce that it complies with seven principles that have been deemed to meet the EU's adequacy standard. To maintain its certification to the Safe Harbor

Amazon has opted out of Phorm's controversial targeted advertising technology, delivering a serious blow to the UK-listed company which has already prompted a European commission legal action against the British government. Phorm's technology, which is yet to be launched in the UK, allows ISPs to track their customers' activity on the internet in order to target adverts on pages they subsequently visit. Amazon's absence from Phorm's Webwise system deprives the company of the second most visited destination, after eBay.co.uk, among shopping and classified websites in the UK, according to data from Hitwise. It means Phorm will not have access to crucial information about what Amazon users are interested in. Last month the Open Rights Group, privacy campaigners, sent a letter to nine of the internet's biggest names, including Amazon, Google, Bebo, Facebook and Yahoo, asking them to opt out of Phorm's technology "to protect your users' privacy". Google and Bebo are actively considering whether to opt out and a spokesman for Amazon said the company has now removed all its domain names - including Amazon.com - from Webwise. A spokesman for Phorm said the company does not comment on individual cases but the it is understood to be planning a meeting with Amazon's management to explain the benefits of the Webwise system.

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Broadband is cheaper in many other countries than in the United States. "You have a pretty uncompetitive market by European standards," said Tim Johnson, the chief analyst at Point-Topic, a London consulting firm. Other countries have lower costs for the same reasons their DSL service is faster. Dense urban areas reduce some of the cost of building networks. In addition, governments in some countries subsidized fiber networks. But the big difference between the United States and most other countries is competition. "Now hold on there," you might say to me. Since I wrote that many countries don't have cable systems and the bulk of broadband is run by way of DSL through existing phone wires, how can there be competition? Aren't those owned by monopoly phone companies? True enough. But most big countries have devised a system to create competition by forcing the phone companies to share their lines and facilities with rival Internet providers. Not surprisingly, the phone companies hate this idea, often called unbundling, and tend to drag their feet when it is introduced. So it requires rather diligent regulators to force the telcos to play fair. And the effect of this scheme depends a lot on details of what equipment is shared and at what prices. Britain has gone the furthest, forcing BT Group to split off a unit that operates the actual network and sells to various voice and Internet providers, including its own telephone service, on an equal basis. The United States was early with this sort of approach, requiring telephone companies to allow rival Internet service providers to sell DSL service using their networks. The way these rules were written, however, meant the wholesale cost was so high that providers like AOL and Earthlink couldn't offer a better deal than the telcos themselves. And the plan was largely abandoned in 2003 by the Federal Communications Commission on the theory that the country is better served by encouraging competition

The Data Protection Directive is old-fashioned and out of date, a report published by the UK's privacy regulator the Information Commissioner's Office (ICO) has said. Commissioner Richard Thomas said that the European Union must change its legislation. The ICO commissioned RAND Europe to investigate whether or not 1995's EU Data Protection Directive was a good basis for Europe-wide data protection law. The research concluded that the law was flawed and needed to be updated. It found that the law must be clearer about what it seeks to achieve, that it should be better at forcing organisations to protect personal data in their charge, that it should encourage a more strategic approach to enforcement and that it does not deal well enough with the export of personal data outside the EU. Thomas said that the Directive, on which the UK's Data Protection Act is based, is outmoded. "The Directive is showing its age. Modern approaches to regulation mean that laws must concentrate on the real risks that people face in the modern world, must avoid unnecessary burdens, and must work well in practice," he said. "Organisations must embed privacy by design and data protection must become a top level corporate governance issue." RAND said that the Directive would be improved by its fundamental approach to ensuring data privacy being changed. It said that the law should focus on the protection of individuals and the security of their data, and not on the processes that lead to that. "The stronger, results oriented approach described in this report aims to protect data subjects against personal harm resulting from the unlawful processing of any data, rather than making personal data the building block of data protection regulations," said the report. "It would move away from a regulatory framework that measures the adequacy of data processing by measuring compliance with certain formalities, towards a framework that instead requires certain fundamental principles to be respected

The European Commission has moved to sue Sweden after the Nordic state failed to implement the EU's Data Retention Directive in a timely fashion. The Directive was passed back in 2006 and requires all EU member states to implement some form of data retention legislation, with terms of six month to two years. National laws were to be in place by March of this year, but Sweden still has yet to introduce a bill of its own.