Antitrust Law Daily Wrap Up, PRIVACY NEWS: EC adopts EU-U.S. Privacy Shield, (Jul 12, 2016)

By Greg Hammond, J.D.

The European Commission (EC) approved today the EU-U.S. Privacy Shield. The move comes just days after European Union (EU) Member States representatives voted to approve the final version of the framework.

The EU-U.S. Privacy Shield imposes "stronger obligations on U.S. companies" to protect Europeans’ personal data, reflecting the requirements of the European Court of Justice, which previously ruled that the former Safe Harbor framework was invalid. The new framework calls for greater transparency, oversight mechanisms to ensure companies abide by the rules, sanctions or exclusion of companies if they do not comply, and tightened conditions for onward transfers.

This new framework "brings stronger data protection standards that are better enforced, safeguards on government access, and easier redress for individuals in case of complaints," stated Věra Jourová, Commissioner for Justice, Consumers and Gender Equality.

Redress mechanisms include: (1) companies must reply to complaints from individuals within 45 days; (2) alternative dispute resolution, provided free of charge; (3) companies will work with the U.S. Department of Commerce and FTC to ensure unresolved complaints by EU citizens are investigated and swiftly resolved; and (4) an arbitration mechanism to ensure an enforceable decision.

"I welcome the European Commission’s approval of the EU-U.S. Privacy Shield Framework," commented FTC Chairwoman Edith Ramirez. "The FTC has a strong track record of protecting consumer privacy, and we will remain vigilant as we enforce the new framework. We will also continue to work closely with our European counterparts to provide robust privacy and data security protections for consumers in the United States and Europe."

EU Member States will be notified of the EC’s "adequacy decision," which will enter into force immediately, according to the Commission. The Privacy Shield framework will be published in the Federal Register in the United States, and the U.S. Department of Commerce will start operating the Privacy Shield. Companies will be provided with time to review the framework, update their compliance, and will be able to certify with the Commerce Department beginning August 1.

News: Privacy FederalTradeCommissionNews