On 19 May 2017, the Cyberspace Administration of China released a revised draft of its Security Assessment for Personal Information and Important Data Transmitted Outside of the People’s Republic of China Measures. The draft emerged just over a week after public comments closed on the first draft of the measures. the Second Draft Export Review Measures do, to an extent, relax some of the more stringent requirements stated in the First Draft Export Review Measures and originally due to become law on 1 June, 2017 when China’s Cyber Security Law takes effect. However, the revised draft measures as set out in the Second Draft Export Review Measures still leave a significant compliance challenge for multi-national businesses operating in China . We explore the Second Draft Export Review Measures below.
The Hong Kong Securities and Futures Commission has issued a paper containing proposals to introduce cyber security guidelines under the Securities and Futures Ordinance applicable to internet brokers. Comments are open through 7 July 2017.
The Digital Economy Bill passed into UK law last Thursday 27 April 2017 amidst the flurry of activity known as the ‘wash up’ period before the dissolution of Parliament and ahead of the early general election in the UK to be held on 8 June. The Digital Economy Act introduces measures to “modernise the UK for enterprise,” and includes plans for public sector data sharing, direct marketing and age verification for online pornography, amongst other measures. An overview of these measures is set forth in this post.
The steady trickle of GDPR guidance from the Article 29 Working Party continues. Fresh from finalising its guidance on data portability, lead supervisory authorities and data protection officers, the Working Party has published draft guidance on data protection impact assessments, the full text of which is available on the Working Party website. Comments can be submitted to the Working Party by 23 May 2017, after which the guidance will be finalised.
On 19 April 2017, the UK Government’s Department for Culture, Media and Sport (DCMS) published a report on cyber security breaches and how they affected UK companies in the last year. The report indicates that a number of UK companies have not implemented comprehensive cybersecurity policies or implemented strong safeguards to protect against cyber attacks. The General Data Protection Regulation — in particular the requirement to ensure all personal data is protected by appropriate technical and organisational measures — provides a real opportunity for any organisation to build a new cyber security strategy. Documenting the decisions taken on these measures will be useful for showing compliance with the new requirements for data protection by design and by default.
A close observer of the GDPR will have noticed that, in several places, individual EU Member States can implement derogations from the GDPR requirements. Of course, as a regulation under EU law there is less scope for local flexibility under the GDPR than under the current EU Data Protection Directive 95/46. Yet the GDPR does, in a number of key areas, allow an EU Member State to set down local laws that could allow a more locally relevant flavour to a particular aspect of compliance. The closing date for submitting views is Wednesday, 10 May 2017.
On 11 April 2017 the Cyberspace Administration of China published a circular calling for comments on its draft Security Assessment for Personal Information and Important Data Transmitted Outside of the People’s Republic of China Measures. Public comments are open through 11 May 2017.
The Article 29 Working Party held its April plenary meeting last week, where it continued its work preparing for the GDPR, adopted an opinion on the draft e-Privacy Regulation, and discussed the annual review of Privacy Shield.
The UK ICO has published what it describes as a feedback request on profiling and automated decision-making, with the intention that responses will “help inform the UK’s contribution to the WP29 guidelines due to be published later this year.” The deadline for responses is 28 April.
If you care enough about privacy issues to be a regular reader of this blog, you probably know that one of the Big Changes under GDPR will be the introduction of “accountability” as a legal obligation, i.e. it will now be a requirement that a data controller is able to demonstrate its compliance with the principles relating to processing of personal data set out in Article 5 of the GDPR. You may even have started thinking about what this means for your organisation: how are you going to get your development teams to adopt privacy by design and default? What are you doing about data minimisation? Do you apply appropriate levels of encryption to your personal data? In our ever-more digitally driven world, it’s easy to get caught up in the sophisticated stuff, but a recent UK ICO decision reminds us that accountability is about the simple stuff as well. Which brings us to filing cabinets.
The Information Commissioner’s Office has issued a £70,000 fine against Flybe and a £13,000 fine against Honda Motor Europe Ltd for breaching Regulation 22 of the Privacy and Electronic Communications Regulations by sending emails requesting individuals to update their marketing preferences.
The UK Information Commissioner’s Office has just published draft guidance on consent under GDPR. This is an interesting move given that the Article 29 Working Party has promised guidance on the same topic later this year, but reading the guidance makes it clear why the ICO decided to prioritise it: many of the practices which it identifies as unacceptable are fairly common in the UK, meaning many companies are going to have to re-think their approach to legitimising their data processing.
Last week, the UK’s Information Commissioner’s Office published a monetary penalty notice, which fined a private healthcare company, HCA International, £200,000 for its failure to keep sensitive data secure.
On 13 February 2017, the Australian Senate passed into law the Privacy Amendment Bill 2016. This law amends the primary privacy and data protection legislation in Australia, Privacy Act 1988, to introduce the long-anticipated mandatory data breach notification scheme. Under this scheme, all agencies and businesses that are regulated by the Privacy Act are required to provide notice to the Australian Information Commissioner and affected individuals of certain data breaches that are likely to result in “serious harm.”
The Polish Data Protection Authority has just released its inspection plans for 2017. This year, the GIODO has decided to target its review of compliance with data protection laws on the health services sector, as well as on the consumer sector, with particular attention to certain profiling activities taking place in stores and shopping malls.
Data brokers are organisations that obtain data from a variety of sources and then sell or license it to third parties. Many trade in personal data, which is purchased by their customers for several purposes, most commonly to support marketing campaigns. The UK data protection regulator has for some time been actively enforcing against organisations who buy individuals’ personal data for direct marketing purposes without first conducting appropriate due diligence to ensure that those individuals have adequately consented to receiving marketing communications. However, in a recently issued monetary penalty notice, the ICO indicated that it may be shifting its enforcement strategy. This post discusses the latest developments.
On 4 February 2017, the Cyberspace Administration of China issued a draft of the Network Products and Services Security Review Measures for public comment: the Draft Measures remain open for comments until 4 March 2017. The Draft Measures are follow-on legislation to China’s Cyber Security Law adopted on 7 November 2016, which will take effect from 1 June 2017.
On 7 February 2017, the Russian President signed into law a bill introducing amendments to the Russian Code on Administrative Offences that increases the amount of the fines imposed for violating Russian data protection laws and differentiates the relevant offences’ types. The greatest increase raises maximum fines for certain violations from RUB 10,000 to 75,000 (approx. USD 170 to 1,260).The law will come into force on 1 July 2017.
On 1 February 2017, the German federal cabinet adopted a draft data protection bill. The planned implementation statute aims to supplement and further define the EU General Data Protection Regulation, which will come into force in 2018. The Chronicle of Data Protection’s summary of the most relevant aspects of the draft bill can be found here. We turn now to a preliminary assessment and explanation of proposed bill, provided by German Data Protection and Freedom of Information Officer Dr. Stefan Brink, European Parliament member Jan Albrecht, and Hogan Lovells partner Tim Wybitul.
Recent changes to Japan’s Act on the Protection of Personal Information and the establishment of a new Personal Information Protection Commission have raised questions about how the world’s third-largest economy plans to implement new domestic requirements and engage internationally on cross-border data transfers, APEC, new technologies, and more. Hogan Lovells recently hosted some of Japan’s senior data privacy regulators and advisors for a special briefing in our Washington, D.C. offices.
The EU’s General Data Protection Regulation, which comes into force in May 2018, is generally designed to align data protection requirements across the EU. However, its opening clauses offer countries some freedom in their implementation of the Regulation and, thus, room to differ. In August 2016, the German Ministry of the Interior released its first GDPR implementation proposal to widespread criticism from both experts and data protection authorities. Recently, the BMI published a revised proposal, a new Federal Data Protection Act. The draft provides further details regarding the scope and implementation of existing GDPR provisions and also contains additional data protection requirements beyond those provided for in the Regulation. We explore notable specifications to and deviations from the GDPR.
Last Wednesday, President Trump signed an immigration-related Executive Order titled “Enhancing Public Safety in the Interior of the United States” that, among other things, removed the ability of federal agencies to extend protections under the Privacy Act to anyone other than U.S. citizens or legal permanent residents. Some initial observers have suggested that this means that the U.S. government is pulling back from its commitments to provide privacy protections to EU citizens, thus putting in peril the EU-U.S. Privacy Shield Framework. Upon closer examination, however, the Executive Order does not impact any of the U.S. commitments under the Privacy Shield, nor does it revoke protections for EU citizens under the Privacy Act provided pursuant to the Judicial Redress Act.
On January 10, 2017, the European Commission released a Communication, a fact sheet, a working document and a public consultation relating to Europe’s “data economy”. The fact sheet states that “data is a new type of economic asset”, which is essential for innovation and growth. The Commission’s objective is to remove “unjustified restrictions” and “legal uncertainties” in order to facilitate data sharing and innovation.
After all of the 2016 drama, the start of a brand new year is a welcome development in itself – a clean sheet for a script yet to be written. However, 2017 will not be without challenges and the same applies to the world of privacy and data protection. Many of the big issues that arose during 2016 will need to be addressed in 2017. In addition, new questions will no doubt emerge. Here is an overview of the privacy challenges that lie ahead and what can be done about them.