consumer who would no doubt prefer the tailored communication approach many brands have adopted since data sharing and customer segmenting became feasible in helping to develop robust CRM strategies. “Furthermore, the consequences for small businesses are likely to be dire as the costs of compliance will be substantial. In a climate where we are turning to small to medium sized enterprises to reinvigorate a stagnate economy, this move could worryingly bring about the opposite effect.”
CHRISTOPHER GRAHAM, INFORMATION COMMISSIONER “There is no doubt the EU’s legal framework for data protection needs modernising in the face of increasingly sophisticated information systems, global information networks, mass information sharing, the ever growing online collection of personal data and the increasing feeling of individuals that they have lost control of their personal information. The proposal seeks to address these needs. The ICO has called for an effective new Data Protection framework that
is overarching, clear in scope and easy to understand and apply. The Commission’s proposal goes a long way towards satisfying many of these requirements. While recognising that there is inevitably some tension between the drive for harmonisation of data protection standards across the EU and the desire for flexibility, however, in a number of areas the proposal is unnecessarily and unhelpfully over prescriptive. This poses challenges for its practical application and risks developing a “tick box” approach to data protection compliance. The proposal also fails to properly recognise the reality of international transfers of personal data in today’s globalised world and misses the chance to adjust the EU regulatory approach accordingly.”
CHRIS COMBEMALE, EXECUTIVE DIRECTOR, DMA “UK businesses need to be worried about the potential impact of the Data Protection Regulation on their ability to market their goods and services to consumers. Severe restrictions on the way in which they can use personal data for marketing purposes will be hugely damaging to sales. “Since 2009 [when the Data Protection Directive came up for review], we’ve been leading the industry’s efforts to ensure that the EU’s policymakers take the industry’s interests into full consideration. We’ve achieved some success because the move toward an opt-in only regime for offline direct marketing hinted at in early leaked drafts wasn’t in the official draft text. However, we mustn’t be complacent because there remains every possibility this could be reinstated at a later stage. “There are a number of other points in the Regulation that we are also
concerned about. This is just the start of a long process before the Regulation comes into law. We’ll be conducting research to assess the economic impact of the Regulation on the multi-billion pound direct marketing industry so we can put a strong case to the lawmakers at every stage to ensure that there are no detrimental consequences for the industry. “We appreciate the need for data protection rules to be in place to build consumer trust in sharing their information with companies, but getting this balance wrong will have terrible financial consequences to UK plc.”
STEVE SHELTON, HEAD OF DATA, BAE SYSTEMS DETICA “The proposed laws may have been designed in response to high profile data privacy concerns but if ratified, twill affect all businesses, forcing many to change the siloed, ad hoc manner in which they store customer data. “Too many businesses lack a coordinated approach to managing their data. They don’t know which customer data they’re storing, where it is being stored or who else in the business may be using it. In the future, this could mean they risk substantial fines for non-compliance with customers’ ‘right to be forgotten’.
“While it may be several years before the EU proposals are ratified, businesses are already operating in a world of ‘Big Data’. Companies need to act now to overhaul their internal processes and look at new techniques and technologies for coping with the data deluge.” n
www.dmarket.co.uk February 2012 11
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