Transborder Data Flow EU Directive and Implications for

Transborder Data Flow: EU Directive and Implications for International Business Elizabeth Longworth Privacy Consultant and Lawyer New Zealand "E-Privacy in the New Economy Conference" Hong Kong, 26 - 27 March 2001 1

What is “transborder data flow”? • outsourced data processing • human resources records • banking, insurance, credit • marketing to prospects and customers • travel reservations • law enforcement, customs, tax "E-Privacy in the New Economy Conference" Hong Kong, 26 - 27 March 2001 2

The knowledge economy leverages off the use of information "E-Privacy in the New Economy Conference" Hong Kong, 26 - 27 March 2001 3

The use of information • ICT capacity and sophistication • globalisation • high volume, widespread data transfer "E-Privacy in the New Economy Conference" Hong Kong, 26 - 27 March 2001 4

EU Privacy Directive (1995) • sets privacy standards • mandatory export restriction • implemented in EU Members’ laws • adequacy requirement (Articles 25 & 26) "E-Privacy in the New Economy Conference" Hong Kong, 26 - 27 March 2001 5

EU “adequacy” requirement • no data transfer to third country unless adequate privacy protection • Depends on substantive rules and procedures in third country • can be ad hoc and contractual mechanisms "E-Privacy in the New Economy Conference" Hong Kong, 26 - 27 March 2001 6

“Adequacy” means • compliance with the privacy rules • support and help for data subjects • appropriate reddress "E-Privacy in the New Economy Conference" Hong Kong, 26 - 27 March 2001 7

Tbdf contracts • need for EC approval • model or standard contract clauses • provisions must satisfy criteria "E-Privacy in the New Economy Conference" Hong Kong, 26 - 27 March 2001 8

On-line tbdf • C 2 B interactions • problems with contractual analysis • significance of privacy policies "E-Privacy in the New Economy Conference" Hong Kong, 26 - 27 March 2001 9

Jurisdictional issues • choice of law • interim relief • enforcement • the law of the supplier (e-com) versus the domicile of the consumer "E-Privacy in the New Economy Conference" Hong Kong, 26 - 27 March 2001 10

Business implications • information as the key resource of the knowledge economy • reliance on continued access to categories of personal data • costs and complexity of satisfying adequacy tests (if no privacy laws) • economies, efficiency, confidence and trust "E-Privacy in the New Economy Conference" Hong Kong, 26 - 27 March 2001 11

Transborder Data Flow: EU Directive and Implications for International Business Elizabeth Longworth longworth@attglobal. net "E-Privacy in the New Economy Conference" Hong Kong, 26 - 27 March 2001 12