Preparing for Privacy Compliance: A Five-Step Guide for IT Departments rid of Safe Harbour Protections
The European Court of Justice (ECJ) has delivered a landmark ruling, declaring the EU-US Safe Harbour clause invalid. This ruling sends a strong message that user privacy rights need to be enshrined by law, not left to self-certification.
The decision affects a wide range of entities, including US social media and internet companies, US cloud file share sites like Dropbox, cloud service providers, global retailers with buyers in the EU, and any US business that manages personal data of EU citizens. Organisations should not underestimate the burden this kind of legislation can represent, as it could require deep-rooted changes and involve many departments within the organisation.
In the wake of the ECJ's ruling, national data protection authorities in EU nation states are hurrying to review, digest, and provide guidance on how companies should proceed day-to-day. In the meantime, companies should start working immediately to audit their data sharing practices, including the use of US cloud sharing services like Dropbox, to understand exactly where they stand and be ready to act when further guidance is issued.
The EU's general approach to proposed data protection plans (General Data Protection Regulation) has been agreed, but the actual regulation is still in consultation. The GDPR could impact the target adoption date, which is currently the end of the year. Businesses that rely on the free transfer of data between the EU and US will need to review the way they collect, store, process, and move personal data relating to EU citizens.
Before the adoption of new EU data protection laws, companies implemented measures such as using unified compliance platforms integrating GDPR tools, conducting automated gap assessments with intelligent questionnaires, creating and updating documentation templates, providing employee training on data protection, and establishing risk analyses and monitoring systems to prepare and align with the new regulatory framework.
The ruling was a direct result of a legal challenge brought by Austrian law student Max Schrems. The ICO (Information Commissioner's Office) has clarified that the use of model clauses in contracts is a hotly debated issue, with some experts advocating their use as a 'band aid' in the absence of further guidance, while others argue that these are no substitute for Safe Harbour.
In the absence of new guidance to replace the Safe Harbour system, it's reasonable to assume whatever comes next will be more rigorous and require an evidence trail. It makes good business sense to plan beyond the current compliance challenge and consider what processes, policies, or technologies can be put in place now to serve future needs.
The compliance process will require C-level buy-in, inter-departmental collaboration, resourcing, budget sign-off, and technological investment. Appointing a data protection officer can be a good first step for many companies, as it is likely that upcoming GDPR regulations will require many more companies to do so.
Moving data securely and reliably has come under the spotlight, and it's never been more important to be sure of file transfer policies. The compliance process is a significant undertaking, but with careful planning and preparation, businesses can ensure they are well-positioned to meet the challenges ahead.
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