Europe Slow To Adopt Data Protection ActApril 4, 2001 — (WEB HOST INDUSTRY REVIEW) — E-commerce has long been heralded in Europe as an excellent way to promote cross-border trade. Many business owners have cited the Internet as an excellent avenue to increase product exposure and attract new customers. But a new report from the London Chamber of Commerce says there is also a new, darker side to e-commerce emerging in Europe: specifically, most companies are completely disregarding Europe’s privacy laws.According to the report, which was conducted in conjunction with technology law firm Manches, only 44 percent of Europe’s e-businesses are complying with 1998′s Data Protection Act, a statute which designates how personal information gathered online can be used. The Act states, among other things, that e-businesses collecting personal information must take significant measures to protect the information they collect. It also says Web sites that collect personal information must reveal to users how the information will be used, and whether or not it will be disseminated to third parties. Companies who do not comply with the Act face hefty fines, and even closure. But a survey of 300 e-businesses in Europe revealed that not only did more than 40 percent not know if they were complying with regulations, but that close to half did not have any policy in place to deal with corporate e-mail. This could leave companies vulnerable if staff members were to conduct themselves improperly with staff e-mail accounts.Europe has always been particularly adamant when it comes to privacy both online and offline. Last year, for example, the European Parliament rejected a proposed data privacy deal between the United States and the European Commission. The proposal had been designed to protect American companies from Europe’s strict regulations when it came to privacy. But European Parliament used its veto power to nix the deal, saying the agreement did not do enough to protect Europeans. According to the LLC’s report, part of the problem is that user privacy seems to be of little concern to most companies when it comes to building a Web site. Only 27 percent of firms who participated in the survey expressed concern regarding regulatory involved in cross-border trading (e-commerce companies must still comply with foreign trade regulations). And with a mere 4% of companies surveyed consulting legal counsel when developing their e-business, it is doubtful that many companies are even aware that the Data Protection Act exists. So what can hosting companies take away from this? The big lesson is a principle that applies not only to the Data Protection Act, but for all legal issues: mistake of fact won’t protect a company in court. It is a company’s responsibility to know what the law is. And while not all hosting companies offer e-commerce functionality on their Web sites, most companies need to collect at least a minimal amount of personal information when setting up accounts for new customers. Whether located in Europe, North America or elsewhere, treat your data with care. Your users deserve it.Consumers can also walk away with a lesson from this survey: you are now in the driver’s seat. A few years ago, online privacy was a non-issue. Companies had free reign when it came to personal information, and it was often mishandled. As the Internet grows, however, the consumers is quickly gaining new rights; the right to privacy is just one of them. So the next time you shop for a host, look in to their privacy policy, and see if it’s agreeable to you. If it’s not, let the company know why. In the Internet age, e-commerce sites have been known to change their tune very quickly if consumers speak out.
About theWHIR.com
Since 2000, The Web Host Industry Review has made a name for itself as the foremost authority of the Web hosting industry providing reliable, insightful and comprehensive news, interviews and resources to the hosting community. TheWHIR is an iNET Interactive property. For more information on iNET Interactive, visit http://www.inetinteractive.com
No related posts.
