EU privacy plan talks continue to end of year
"We have gotten a political commitment from the EU and its member nations not to disrupt data flow between Europe and the U.S." while talks continue, most likely until the year's end, on how to implement the directive, said Barbara Wellbery, counselor to the Commerce Department undersecretary, in an interview. The directive prohibits the buying and selling of personal data about European citizens, mandates that Web sites tell users when data about them is being collected, and calls on sites to let users refuse the disclosure. It is aimed at restricting the flow of information about Europeans to companies based in countries with more lax data privacy standards, including the U.S.
EU officials said last week the directive is officially in force, and that they plan to investigate consumer allegations of misuse of private information even during the talks. But Wellbery said the Commerce Department is confident that the EU's assurance of cooperation means that American e-commerce vendors won't see business disrupted by the directive.
At issue are the steps American companies must take to be in compliance with the directive, she said.
'Safe harbor'
The Europeans are pushing to make it tougher for companies to collect consumers' private data, while the Commerce Department hopes for an agreement on a "safe harbor" plan, with which companies would be in compliance -- and immune from prosecution -- as long as they agree to specific data privacy guidelines.
"Both sides are interested in protecting consumers' privacy while allowing the free flow of information," Wellbery added.
The two sides are negotiating about what U.S. companies would need to do to fall under the safe harbor. The final plan could call for them to give notice of data collection and provide an opportunity for consumers to refuse to submit certain data, she said.
Neither side has yet proposed issuing a privacy seal for Web sites, but the idea has not been ruled out, she said.
"If the EU decided to develop its own seal, we wouldn't have a problem with that," Wellbery said. "One of our goals is to make it as flexible as possible for U.S. companies."
Talks are cordial
Guidelines for U.S. companies to follow in order to be in compliance with the directive are expected to be issued by the Commerce Department in draft form by year's end, she said.
The talks so far have been cordial in tone in spite of the disagreements on policies, Wellbery added.
"I think we agree on more points than we disagree on," she said.