ISBA criticises “scaremonger” tactics around latest push for EU Data Protection reforms
ISBA has criticised EU justice commissioner Viviane Reding’s calls to reinstate consumer trust in the data-driven economy by accelerating the EU data protection reforms.
Reding, who made her speech at the fourth annual European Data Protection conference in Brussels last week (17 September), said: “The headlines over the past months have been dominated by stories about surveillance. Claims and counter-claims have been made at a dizzying speed.
“In my dialogues with citizens across the union, the sense of shock is palpable and the reaction is clear. The revelations over the past months have acted as a wake-up call. People have been reminded of why data protection is important; of why a strong framework for the protection of personal data is a necessity, not a luxury.
“Trust in the data-driven economy, already in need of a boost, has been damaged. This is a source of concern because of the potential impact on growth. Collected, analysed and moved, personal data has acquired enormous economic significance. According to the Boston Consulting Group, the value of EU citizens' data was €315 billion in 2011. It has the potential to grow to nearly €1 trillion annually in 2020.”
She said restoring trust and boosting growth can both be delivered through the EU’s data protection reforms, which will restore people’s trust by putting them “back in control” of their data.
It will also boost growth by opening the EU’s market in data, becoming a “key building block of the “Digital Single Market”, according to Reding.
However, ISBA has challenged her comments, adding that they are “scaremonger tactics”.
ISBA’s director of public affairs Ian Twinn said: “Reding is conflating fear of surveillance with the need to bring data protection legislation up to date.
“The proposals Reding is trying to push through on this wave of fear go too far and, aside from being largely unworkable, will only serve to disrupt the consumer experience and punish business.
“Let’s not forget one of the key things here: businesses don’t want to identify individuals, they are looking to better use anonymous data.”
Twinn said a strong data protection framework is a “necessity” but that it is not acceptable to “play on” public reaction to high-profile surveillance stories to push through the legislation.
He said: "It is not ok to play on what Reding describes as the EU citizens’ palpable sense of shock over recent high-profile surveillance stories to pass through what is simply put very bad legislation.
“If Reding gets her way she will damage the digital-economy, which is a strong driving force for growth, at a time when Europe really needs it."
Evidence submitted by ISBA members to the Ministry of Justice warned that current proposals will:
* Remove the ability for business to track user behaviour, leading to lost online sales
* Potentially put pressure on large parts of the display media ecosystem
* Interrupt the customer’s online journey
* Users would be served a less personalised experience, online shopping being badly affected
* Mean potential loss of free media content
* Render targeted marketing impossible, leading to a ‘scatter gun’ approach.