EU, US deal on personal data transfers goes into effect

News General Europe 12 JUL 2016
EU, US deal on personal data transfers goes into effect
The European Commission has approved the Privacy Shield agreement with the US on the transfer of personal data cross the Atlantic. The Commission said that the final agreement was amended following concerns from the EU data protection authorities (Art. 29 working party) and the European Data Protection Supervisor, as well as a resolution of the European Parliament. This resulted in a number of clarifications and improvements compared to the draft agreement presented in February, on issues such as bulk collection of data, strengthening the new ombudsperson and more explicit obligations on companies as regards limits on retention and onward transfers.

Once the Commission sends its 'adequacy decision' to the member states of the EU, and the agreement is published in the US Official Journal, the agreement will come into effect immediately. The EC said the US Department of Commerce aims to start certifying businesses for compliance with the new terms from 01 August, and the Commission will publish a guide to citizens on their data protection rights under the agreement, including to redress in the US. 

Under the new arrangement, the US Department of Commerce will conduct regular updates and reviews of participating companies, to ensure they follow the rules. If not, they face sanctions and removal from the list of organisations approved to transfer data between Europe and the US. The tightening of conditions for the onward transfer of data to third parties will guarantee the same level of protection in case of a transfer from a Privacy Shield company. In addition, the US has given the EU assurance that the access of public authorities for law enforcement and national security is subject to clear limitations, safeguards and oversight mechanisms. Everyone in the EU will, for the first time, benefit from redress mechanisms if they believe their personal has been misused in this way area. The workings of the Privacy Shield will be evaluated each year, and the Commission will issue a public report to the European Parliament and the Council. 

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