Department of Commerce Requests Comment on EU Privacy Directive

Washington, DC, November 17, 1999 - Since last fall, the U.S. Department of Commerce and the European Commission have engaged in negotiations over a safe harbor for U.S. companies from the European Union data protection directive. The directive prohibits the flow of personal information from European Union member states to any recipient outside the EU that lacks adequate privacy protections. Companies complying with the terms of the safe harbor would have a presumption of adequacy in this regard, significantly reducing the potential that data flows to those companies would be challenged under the directive. (See the financial privacy section of this website for additional background information.)

On November 15, 1999, Commerce published the safe harbor documents on its website and requested comment by December 3, 1999.

There are four sets of documents that will define the terms of the safe harbor:

  1. The international safe harbor privacy principles. These include principles on notice, choice, onward transfer, security, data integrity, access, and enforcement.
  2. Frequently asked questions. There are fifteen sets of frequently asked questions that further explain the safe harbor principles.
  3. Exchange of Letters. The concept of the safe harbor will be explained in a letter from Ambassador David Aaron of the Department of Commerce to John Mogg of the EC. That letter will also request that the EC make a determination that companies complying with the safe harbor have a presumption of adequacy under the directive. The reply letter from John Mogg will explain that the EC has made that finding and provide further administrative details about the safe harbor.
  4. Article 25.6 Decision on Adequacy. Attached to Mr. Mogg's letter will be an Article 25.6 decision by the EC. Article 25.6 gives the EC the power to make decisions determining that the data protection provided by a particular non-EU country is adequate for purposes of the directive.

Ambassador Aaron's cover letter notes that the U.S. has requested that the EC provide separate adequacy determinations on the Fair Credit Reporting Act and the recently enacted Gramm-Leach-Bliley Act of 1999, and that those requests are still pending.

  

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