Category Archives: EU Data News

GDPR Re-Permissioning needs careful planning

Morrisons becomes the latest high-profile company fined for breaking Privacy and Electronic Communications Regulations (PECR)

The ICO, the independent authority responsible for investigating breaches of data protection law, has fined the fourth largest supermarket chain in the UK £10,500 for sending 130,671 of their customers’ unsolicited marketing emails.

These customers had explicitly opted-out of receiving marketing emails related to their Morrisons ‘More’ loyalty card when they signed up to the scheme. In October and November 2016, Morrisons used the email addresses associated with these loyalty cards to promote various deals. This is in contravention of laws defining the misuse of personal information, which stipulate that individuals must give consent to receive personal ‘direct’ marketing via email.

‘Service emails’ versus ‘Marketing emails’

While the emails’ subject heading was ‘Your Account Details,’ the customers were told that by changing the marketing preferences on their loyalty card account, they could receive money off coupons, extra More Points and the company’s latest news.

The subject heading might suggest to the recipient that they are ‘service emails,’ which are defined under the Data Protection Act 1998 (DPA) as any email an organisation has a legal obligation to send, or an email without which an individual would be disadvantaged (for instance, a reminder for a booked train departure). But there is a fine line between a service email and a marketing email: if an email contains any brand promotion or advertising content whatsoever, it is deemed the latter under the DPA. Emails that ask for clarification on marketing preferences are still marketing emails and a misuse of personal contact data.

Morrisons explained to the ICO that the recipients of these emails had opted-in to marketing related to online groceries, but opted-out of marketing related to their loyalty cards, so emails had been sent for the ostensible purpose of qualifying marketing preferences which also included promotional content. Morrisons could not provide evidence that these customers had consented to receiving this type of email, however, and they were duly fined – although in cases such as this it is often the losses from reputational damage that businesses fear more.

Fines and reputational damage

This comes just three months after the ICO confirmed fines – for almost identical breaches of PECR – of £13,000 and £70,000 for Honda and Exeter-based airline Flybe respectively. Whereas Honda could not prove that 289,790 customers had given consent to direct e-marketing, Flybe disregarded 3.3 million addressees’ explicit wishes to not receive marketing emails.

Even a fine of £70,000 – which can currently be subject to a 20% early payment discount – for sending out emails to existing customers with some roundabout content in them for the sake of promotion, will seem charitable when the General Data Protection Regulation (GDPR) updates the PECR and DPA in 2018. Under the new regulations, misuse of data including illegal marketing risks a fine of up to €20 million or 4% of annual global turnover.

The ICO has acknowledged Honda’s belief that their emails were a means of helping their firm remain compliant with data protection law, and that the authority “recognises that companies will be reviewing how they obtain customer consent for marketing to comply with stronger data protection legislation coming into force in May 2018.”

These three cases are forewarnings of the imminent rise in stakes for not marketing in compliance with data protection law. The GDPR, an EU regulation that will demand British businesses’ compliance irrespective of Brexit, not only massively increases the monetary penalty for non-compliance, but also demands greater accountability to individuals with regard to the use and storage of their personal data.

The regulators recent actions show that companies will not be able cut legal corners under the assumption of ambiguity between general service and implicit promotional emails. And with the GDPR coming into force next year, adherence to data protection regulations is something marketing departments will need to find the time and resources to prepare for.

Harry Smithson, 22/06/17

Queen’s Speech Confirms New Bill to Replace Data Protection Act 1998

As part of several of measures aimed at “making our country safer and more united,” a new Data Protection Bill has been announced in the Queen’s Speech.

The Bill, which follows up proposals in the Conservative manifesto ahead of the election in June, is designed to make the UK’s data protection framework “suitable for our new digital age, allowing citizens to better control their data.”

The intentions behind the Bill are to:

  • Give people more rights over the use and storage of their personal information. Social media platforms will be required to delete data gathered about people prior to them turning 18. The ‘right to be forgotten’ is enshrined in the Bill’s requirement of organisations to delete an individual’s data on request or when there are “no longer legitimate grounds for retaining it.”
  • Implement the EU’s General Data Protection Regulation, and the new Directive which applies to law enforcement data processing. This meets the UK’s obligations to international law enforcement during its time as an EU member state and provides the UK with a system to share data internationally after Brexit is finalised.
  • To update the powers and sanctions available to the Information Commissioner.
  • Strengthen the UK’s competitive position in technological innovation and digital markets by providing a safe framework for data sharing and a robust personal data protection regime.
  • Ensure that police and judicial authorities can continue to exchange information “with international partners in the fight against terrorism and other serious crimes.”

Ultimately, the Bill seeks to modernise the UK’s data protection regime and to secure British citizens’ ability to control the processing and application of their personal information. The Queen’s Speech expressed the Government’s concern not only over law enforcement, but also the digital economy: over 70% of all trade in services are enabled by data flows, making data protection critical to international trade, and in 2015, the digital sector contributed £118 billion to the economy and employed over 1.4 million people across the UK.

Written by Harry Smithson, 22nd June 2017

Insider Threats – Charlotte’s View

Insider Threats – Charlotte’s View

Something that is being spoken about more and more (due to the unfortunate higher frequency) is insider threat. It’s in the news an awful lot more than it ever used to be.

Do you remember the auditor of Morrisons who released a spreadsheet detailing just shy of 100,000 members of staff’s (very) personal details? He did end up getting jailed for 8 years but I heard a saying recently, it’s not a digital footprint you leave it’s more of a digital tattoo. Even two years after the incident Morrisons is still suffering the effects.

Now obviously that was what you would call a malicious breach. It does unfortunately happen, but there are ways for you to protect your company against this. Firstly we here at Data Compliant believe that if you have detailed joiner processes in place (i.e. thorough screening and references and criminal checks where appropriate), ongoing appraisals with staff and good leaver processes you can minimise your risk.

Other ways of insider breaches occurring, and much more likely in my opinion, are negligence, carelessness and genuine accidents. Did you know that over 50% of data breaches are cause by staff error? This may be because staff do not follow company procedures correctly and open up pathways for hackers. Or it could be that your staff are tricked into handing over information that they shouldn’t.

Your staff could be your company’s weakest point in relation to protecting it’s personal and confidential data. But you can take simple steps to minimise this risk by training your staff in data protection.

Online training has some big advantages for businesses, it’s a quick, efficient and relatively inexpensive way of training large numbers of employees while “taking them out of the business” for the least possible time.

The risk of breaches isn’t just your business’ reputation, or even a hefty fine from the ICO but as mentioned before, also a criminal conviction. Now that is a lot to risk.

If you’re interested in online training have a look at this video.

 

charlotte

Written by Charlotte Seymour, November 2016

 

EU – US Privacy Shield has been adopted

Privacy ShieldAt last agreement has been reached on the EU – US Privacy Shield agreement which now replaces the Safe Harbor agreement.  Safe Harbor was ruled invalid in 2015 by the EU Court of Justice, because they said there were not sufficient safeguards for personal data under the voluntary scheme.

The new agreement is intended to protect the privacy of EU citizens when their personal information is processed in the US.

Companies will be able to sign up to the EU – US Privacy Shield from August 1st once they have implemented any necessary changes to comply with the strict compliance obligations.

The EU – US Privacy Shield is based on a system of self-certification by which US organisations commit to a set of privacy principles entitled the EU – US  Privacy Shield Framework Principles.

The new framework was unveiled in February and has been under review since then.  Back in June the European Data Protection Supervisor, Giovanni Buttarelli advised that it ‘needed significant improvements’ because it was not ‘robust enough’ and that the Commission should negotiate improvements to the Privacy Shield in three main areas:

  • limiting exemptions to its provisions;
  • improving its redress and oversight mechanisms,
  • integrating all the main EU data protection principles.

For the Privacy Shield to be an effective improvement on Safe Harbour it must provide adequate protection against indiscriminate surveillance as well as obligations on transparency, and data protection rights for people in the EU.

In Brussels on July 12th Věra Jourová, Commissioner for Justice, Consumers and Gender Equality said: “The EU – US  Privacy Shield is a robust new system to protect the personal data of Europeans and ensure legal certainty for businesses. It brings stronger data protection standards that are better enforced, safeguards on government access, and easier redress for individuals in case of complaints”

In summary the EU-US Privacy Shield is based on the following principles:

  • Strong obligations on Companies handling data and robust enforcement
  • Clear safeguards and transparency obligations on US government access
  • Effective protection of individual rights
  • Annual joint review mechanism
  • Easier and cheaper redress possibilities in case of complaints —directly or with the help of the local Data Protection Authority

The Privacy Shield agreement applies to both data controllers and processors (agents), and specifies that processors must be contractually bound to act only on instructions from the EU controller and assist the latter in responding to individuals exercising their rights under the Principles.

Whilst the UK remains a member of the EU (which it will be for least the next 2 years) UK based companies that process data in the US will be able to use the Privacy Shield where appropriate.

Michelle Evans, Data Compliance Director

14th July 2016

What does Brexit Mean for GDPR?

brexit eggBritain has voted to leave the EU, and at this stage it seems that Parliament is going to honour the results and take us out of the EU. So what does this mean for data protection?

I don’t think there has ever been such uncertainty, confusion, difficulty and high risk over data compliance.  So I thought this might help clarify what Brexit is likely to mean in relation to the UK’s data protection legislation.

  1. If Article 50 is invoked in or after October 2016 (as suggested by David Cameron this morning) it will take at least two years and four months for the UK to leave the EU. And, given the complexities of the exit negotiations involved, it may well take longer than that.
  2. EU law will continue to apply until the moment the UK actually leaves the EU, which means that, for a minimum of 5 months, UK organisations – even those which do not process data in Europe – will be required to comply with GDPR. 
  3. If Britain leaves the EU and remains a part of the EEA (like countries such as Switzerland, Norway, Iceland and Lichtenstein), it will be required to comply with GDPR.     
  4. If Britain does not want to be part of the EEA, once it has left the EU it will NOT be required to comply with GDPR.
  5. However, if the UK wants to trade equally with the EU (to quote the Information Commissioner’s Office)UK data protection standards would have to be equivalent to the EU’s General Data Protection Regulation framework starting in 2018.”  To achieve this end, the ICO has already stated its intention to speak to the UK government to explain that reform of the UK law remains necessary Having clear laws with safeguards in place is more important than ever given the growing digital economy”

Although it’s too early to know exactly what will happen to UK Data Protection law, what is quite clear is that all UK businesses need to continue making preparations for GDPR compliance.  An excellent starting place is to ensure that you understand and comply with current legislation right now.  I’d suggest the following process:

brexit compliance process

If you have any questions about data protection governance, compliance or security and would like a no-strings chat, please don’t hesitate to call on 0203 815 8003 or email dc@datacompliant.co.uk.

GDPR is here – Data Protection is Changing

shutterstock_128215814The General Data Protection Regulation (GDPR) will become law on 25th May 2018.  This is the biggest data protection shake-up for twenty years and impacts every organisation in the world that processes the personal data of UK and European citizens.

GDPR is designed to strengthen individuals’ rights and give them greater control over their data.  Data breaches and data theft … and the catastrophic publicity that goes with them … are now everyday events.  Just ask Morrisons, Talk Talk, eBay, Altzheimers Society and VTech. Under GDPR, these, and all other organisations will face fines of up to 4% of worldwide turnover or 20 million euros (whichever is higher).

The onus is on Boards, individual directors and management to understand and comply with the Regulation, and to make the critical changes required to the way in which organisations handle personal data.  And the clock is already ticking – there are only 24 months available to make the vital procedural, technical and resource changes required for compliance.

shutterstock_14154718The first issue is to understand exactly what personal data you hold.  This is not always simple. Data’s a bit like a river, and sometimes the flow can just be too fast to control. It may flow down the main stream, pause in a deep pool, join another river at a junction,  then wander off down tributaries, streams and burns, and disappear – only to bubble up unexpectedly in the middle of an isolated moor.  Like a river, data can be full of good and exciting things, or stagnant and disgusting.

 

It is essential to know what personal data you hold, where it is held, where it came from, how it was collected, what evidence you have that it has been collected and processed legally, with whom it has been shared (internally and externally), on what terms it has been bought or licensed, whether and where it has been archived or deleted, and who is responsible for its safekeeping.

Until all that information is in place, there is no chance that you can keep it clean, up-to-date and protect it from external or internal threats.  And there’s absolutely no chance you can comply with the Data Protection Act as it stands now – let alone GDPR.

Data Compliant has developed a quick GDPR Compliance Checker – if you’d like to know more about where you are compared to where you need to be for GDPR compliance, just click here, answer the questions, and we’ll send you a free report, including:

–  your topline level of compliance by category
–  a benchline summary of how you compare with other UK organisations
–  a summary of the key steps you need to take to become compliant
Remember, enforcement begins on May 25th, 2018 – now’s the time to start to get ready.

GDPR and Data Processors – a New World

data processors

Now that GDPR has been approved, companies need to start work on preparing their governance, employees and technology for the new legislation.

Among those organisations most affected by GDPR are Data Processors.    Data processors process data on behalf of, and under the instruction of their data controller.  Now data processors must comply with the statutory requirements of GDPR and, for the first time, can be held accountable.

Failure to meet the requirements of GDPR carries significant sanctions, up to 4% of global turnover OR 20 million euros – whichever is the greater.   In addition, processors still run the risk that, in the event of non-compliance or breach, their data controller can sue for breach of contract – all eye-wateringly expensive to the point of breaking the business.

So it’s a new world for data processors, who need to take steps immediately to protect themselves against compliance and security risk. For example:

  • They must have appropriate technical and organisational measures to ensure security of the data they are processing.
  • They must maintain written records relating to all personal data processing carried out for each of its data controllers
  • They may no longer appoint new or alternate sub-processors without the authorisation of the data controller
  • They must cooperate with the relevant supervisory authority
  • They must notify the data controller without undue delay in the event of a data breach
  • They must comply with GDPR in relation to cross-border data transfers

So what kind of organisation does this affect? Data processors include a multitude of businesses from call centres, to data providers, to data service providers – cleansing, hygiene, analysis – to cloud providers and technology vendors.

Mandated contract clauses have been specified in detail under GDPR, so all existing and future contracts will need review and are likely to need revision as negotiations between controllers and processors become ever tougher as each party tries to tie down the areas of liability and responsibility.

There is an argument that the costs of processing may increase, which will have a negative impact for data controllers.  But there’s no doubt – data processors are now firmly in a new world of liability and penalty.

Safe Harbour out .. EU-US Privacy Shield in

eu us privacy seal

EU Commission and United States agree on new framework for transatlantic data flows: EU-US Privacy Shield

On Tuesday 2nd February an agreement was reached after several months of negotiations between Europe and the USA. This has come about following the Schrems case and the European Court of Justice ruling on 6th of October 2015 which declared the old so called ‘Safe Harbour’ framework invalid.  The Safe Harbour expiry deadline was 31st January.

The EU-US Privacy Shield

Some of the key elements of the new framework are listed below:

  • Strong obligations on companies handling Europeans’ personal data and robust enforcement: U.S. companies wishing to import personal data from Europe will need to commit to robust obligations on how personal data is processed and individual rights are guaranteed. The Department of Commerce will monitor that companies publish their commitments, which makes them enforceable under U.S. law by the US. Federal Trade Commission. In addition, any company handling human resources data from Europe has to commit to comply with decisions by European DPAs.
  • Clear safeguards and transparency obligations on U.S. government access: For the first time, the US has given the EU written assurances that the access of public authorities for law enforcement and national security will be subject to clear limitations, safeguards and oversight mechanisms. The U.S. has ruled out indiscriminate mass surveillance on the personal data transferred to the US under the new arrangement. To regularly monitor the functioning of the arrangement there will be an annual joint review. The European Commission and the U.S. Department of Commerce will conduct the review and invite national intelligence experts from the U.S. and European Data Protection Authorities to it.
  • Effective protection of EU individuals’ rights with several redress possibilities: Any individual who considers that their data has been misused under the new arrangement will have several redress possibilities. Companies have deadlines to reply to complaints. European DPAs can refer complaints to the Department of Commerce and the Federal Trade Commission. In addition, Alternative Dispute resolution will be free of charge. For complaints on possible access by national intelligence authorities, a new Ombudsperson will be created.

EU-US Privacy Shield Next Steps

 Vice-President Ansip and Commissioner Jourová   have been mandated to prepare a draft “adequacy decision” in the coming weeks, which could then be adopted by the College of Commissioners after obtaining the advice of the Article 29 Working Party and after consulting a committee composed of representatives of the EU Member States. In the meantime, the U.S. side will make the necessary preparations to put in place the new framework, monitoring mechanisms and new Ombudsperson.

EU DPA Regulation – 7 Key Changes

EU balance

A good balance between business needs and individual rights

Talks on ensuring a high level of data protection across the EU Marketers are now complete and draft text was agreed on Wednesday 16th December 2015.  Marketers are delighted with the “strong compromise” agreed by Parliament and Council negotiators in their last round of talks.

The draft regulation aims to give individuals control over their private data, while also creating clarity and legal certainty for businesses to spur competition in the digital market.  Back in September Angela Merkel appealed to the European parliament to take a business view rather than simply look at the Regulation from a data protection perspective  lest the legislation hold back economic growth in Europe.  At the same time she described data as the “raw material” of the future and expressed her belief that it is fundamental to the digital single market.

The regulation returns control over citizens’ personal data to citizens. Companies will not be allowed to divulge information that they have received for a particular purpose without the permission of the person concerned.

EU DPA Regulation – 7 Key Changes

  1. 4% Fines:  The Council had called for fines of up to two percent of global turnover, while the Parliament’s version would have increased that to five percent.  In apparent compromise, the figure has been set at four percent, which for global companies could amount to millions.
  2. Data Protection Officers (DPOs):  Companies will have to appoint a data protection officer if they process sensitive data on a large scale or collect information on many consumers.  These do not have to be internal or full-time.
  3. Consent:  to marketers’ relief, consent will now have to be ‘unambiguous’ rather than the originally proposed ‘explicit’ which provides a more business-friendly approach to the legislation. In essence this means that direct mail and telephone marketing can still be conducted on an opt-out basis.  Nonetheless, businesses will be obliged to ensure that consumers will have to give their consent by a clear and affirmative action to the use of their data for a specific purpose.
  4. Definition of Personal Data – the definition has been  expanded in particular by reference to an identification number, location data, online identifier or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that person.
  5. Online identifiers -whether cookies and ISPs are personal data has been the subject of discussion for some months.  James Milligan of the DMA has expressed the view that a compromise has been reached “Whether or not online identifiers such as cookies fall into the definition of ‘personal data’ will depend on where they are placed in the online ecosystem. For example, a cookie placed by my internet service provider will be classified as personal data as it could identify me, whereas a cookie placed by an advertiser lower down the online ecosystem and cannot be linked to my email address or anything else which could identify me, is unlikely to be considered as personal data.  This represents a sensible compromise as it was feared that all online identifiers would be considered as personal data. This separation means non-identifiable, ‘blind’ data can be more widely used than identifiable personal data.”
  6. Profiling – Profiling has now been included under the term ‘automated decision making’.  Individuals have the right not to be subject to the results of automated decision making, so they can opt out of profiling. It will be necessary to implement tick-boxes or similar mechanisms to secure the data subject’s positive indication of consent to specific processing activities related to Profiling.
  7. Parental consent – Member states could not agree to set a 13-year age limit for parental consent for children to use social media such as Facebook or Instagram. Instead, member states will now be free to set their own limits between 13 and 16 years.

 

Next Steps

The provisional agreements on the package will be put to a confirmation vote in the Civil Liberties Committee today (Thursday 17 December) at 9.30 in Strasbourg.

If the deal is approved in committee it will then be put to a vote by Parliament as whole in the new year, after which member states will have two years to transpose the provisions of the directive into their national laws. The regulation, which will apply directly in all member states, will also take effect after two years.

Written by Michelle Evans, Compliance Director at Data Compliant Ltd.

If you would like further advice on how the EU Regulation will affect your business, just call Michelle or Victoria on 01787 277742 or email dc@datacompliant.co.uk

 

 

EU Data Protection Laws – why it’s time to get ready

EU dpaEU Data Protection – Change is Coming

The  new EU data protection law is getting ever closer.  The clock is ticking, with major changes on the horizon relating to the way businesses will be allowed to collect, hold, store and use personal data.

New EU Regulation – what will change?

The changes to the law fall into two main areas

  • Responsibility and Accountability …

    … which will require organisations to demonstrate stringent data governance and robust data protection policies, procedures, processes and training, starting with the Board.

  • Marketing …

    … which will  impact consent (which must be obtained fairly, and be unambiguous and explicit), and will impose restrictions around tracking and profiling.

You’ll find more information about the upcoming DPA changes in relation to marketing and accountability in the guest blog I wrote for All Response Media.

When will the new EU Regulation become Law?

This has been the subject of much discussion. Justice and Home Affairs Ministers agreed amendments to the Commission Text in June, and three-way negotiations are now taking place between the EC, Parliament and Justice and Home Affairs Ministers.

It is expected that this process will be completed by December 2015, in which case the Regulation will be passed in Brussels in early 2016, and become UK law in late 2017 / early 2018.

So why do I need to start now?

While it may seem that a couple of years is plenty of time to get ready, failing to react until the big shake-up actually arrives is likely to cause chaos and confusion throughout all areas of your business.

Responsibility and accountability for the new legal requirements around data protection must lie with the Board in order to be embedded throughout all areas of the business – from sales and marketing to IT, HR to Customer Services. With that in mind, and given the huge emphasis on accountability and governance, preparation and planning are essential, and businesses need to start looking at their data governance, compliance and security measures right now.

How can Data Compliant help?

The protection of the personal data your company holds needs to be of paramount importance – it will no longer be acceptable to fall short in terms of accountability, or responsibility, or to rely on loopholes in the current legislation. So please get in touch if you you would like to discuss the implications of the new legislation, and to understand your obligations around data governance, security and compliance. Have a look at our website, call 01787 277742, or email victoria@datacompliant.co.uk