Data privacy proposals could affect online retail operations

Employment Law & HR update 27/01/2012

Retail businesses with online operation are likely to be affected by proposed new EU data laws aimed at enhancing people’s online “right to be forgotten”.

The proposals for the new directive and regulations, put forward by the European Commission, make key changes to the 1995 data protection rules, to bring them more in line with people’s increasing online activity.

The European Justice Commissioner, Viviane Reding, said that it was more important than ever for people to know about their online rights and be in control of their online activity.

She explained, “My proposals will help build trust in online services because people will be better informed about their rights and more in control of their information.”

The new regulations would have a significant effect on information stored on retail sites when people have made purchases online. Users will have the right to demand that data about them be deleted if there are no "legitimate grounds" for it to be kept and companies will have to explicitly ask users for permission to process their data, instead of just assuming it.

Reding said that penalties could include fining companies up to 0.5 per cent of their global turnover if they charges a user for a data request, rising to 2 per cent of their turnover for more serious violations.

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