Commerce Department Releases Additional Data Privacy Documents

Washington, DC, May 3, 1999 - The Department of Commerce has made available for comment several additional sets of "frequently asked questions" relating to the proposed safe harbor that would protect U.S. businesses from enforcement actions under the European Union's Data Protection Directive. As a result of the newly released FAQs, the comment period for all documents relating to the safe harbor has been extended to May 15, 1999. The European Commission is concurrently seeking comments on the materials from EU member states.

The Directive, which went into effect on October 25, 1998, governs the processing of personal data in the EU and the transfer of that data to countries outside the EU. By its terms, the Directive prohibits the transfer of data to countries outside the EU that lack adequate privacy protections. The safe harbor would create a presumption that, for purposes of the Directive, companies complying with the safe harbor terms adequately protect privacy. This presumption would substantially reduce the possibility of disruptions to data flows to and from European sources.