Privacy Shield is Here: What You Need to Know July 21, 2016
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Today’s Speakers Caitlin Fennessy Senior Policy Advisor Data Flows and Privacy Team International Trade Administration U.S. Department of Commerce
Chris Babel, CEO TRUSTe
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Today’s Agenda • Welcome & Introductions • Understanding the Differences between Safe Harbor & Privacy Shield • How the Department of Commerce will Operate the Program
• Working with Third Party Verification & Dispute Resolution Providers • Looking Forward • Q&A
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Understanding the Differences between Safe Harbor & Privacy Shield Caitlin Fennessy, Senior Policy Advisor, Privacy & Data Flows Team, U.S. Department of Commerce
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Understanding the Privacy Shield Framework What does the Privacy Shield contain? Privacy Shield Principles –Requirements to which U.S.-based organizations can make an enforceable commitment to receive data in compliance with EU data protection laws
Letters Describing Oversight and Enforcement from: –Secretary of Commerce and Under Secretary for International Trade –Chairwoman of the Federal Trade Commission –Secretary of Transportation
Government Access to Data −Letter from the Secretary of State on the new Privacy Shield Ombudsperson
−Letter concerning safeguards and limitations from the Office of the Director of National Intelligence −Letter concerning safeguards and limitations from the Department of Justice Privacy Insight Series - truste.com/insightseries v
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Understanding the Privacy Shield Framework
What should your company focus on to come into compliance? What’s new compared to Safe Harbor
1. New Privacy Protections Notice requirements Accountability for onward transfer
Purpose limitation and data retention Note: Companies should review the Framework in its entirety. These slides are only meant to highlight certain aspects. Privacy Insight Series - truste.com/insightseries v
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Understanding the Privacy Shield Framework
What should your company focus on to come into compliance? What’s new compared to Safe Harbor 2. Enhanced Complaint Resolution
Response time to EU individuals Free dispute resolution Binding arbitration as last-resort option
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Understanding the Privacy Shield Framework
What should your company focus on to come into compliance? What’s new compared to Safe Harbor
3. Improved Cooperation and Transparency Monitoring and dispute resolution requires cooperation with ITA Privacy Shield Team Ongoing requirements (if withdraw and maintain data) Publication of FTC compliance reports (if subject to enforcement action) Privacy Insight Series - truste.com/insightseries v
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How the Department of Commerce will Operate the Program Caitlin Fennessy, Senior Policy Advisor, Privacy & Data Flows Team, Department of Commerce
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Joining the Privacy Shield Program How will a company join Privacy Shield? 1. Confirm Your Organization’s Eligibility to Participate 2. Develop a Compliant Privacy Policy 3. Establish an Independent Recourse Mechanism (IRM) 4. Ensure a Verification Mechanism is in place 5. Identify your Privacy Shield Point of Contact 6. Self-certify Using the Privacy Shield Website 7. Reaffirm Self-certification Annually 8. Reply to Inquiries from EU citizens, IRM, Commerce, and/or DPAs as Required Privacy Insight Series - truste.com/insightseries v
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Joining the Privacy Shield Program ITA Administration: What’s new that matters to you?
Maintenance of the Privacy Shield Website
Verification of Self-Certification Requirements Monitoring of Compliance Facilitating Resolution of Complaints Referred by EU DPAs
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Joining the Privacy Shield Program FTC Enforcement: What has changed (and what hasn’t)? Prioritization of DPA Referrals Enforcement Cooperation
Investigatory Assistance Publication of FTC Compliance Reports
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Third Party Verification & Dispute Resolution Providers Chris Babel, CEO, TRUSTe
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Privacy Practices Verification •Companies must take steps to verify assertions made around Privacy Shield compliance are true •Third party compliance reviews can be used to satisfy this requirement
•Third party reviews must: –Verify privacy policies are being complied with –Consumers are informed of how they can file a compliant
• Companies must be able to demonstrate an external review has been successfully completed annually –This can be provided by the external compliance review provider
•Companies must retain records of their implementation of the Privacy Shield Principles and privacy policies –Records must be provided upon request in context of a Privacy Shield related investigation
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Dispute Resolution •Companies must respond to initial complaint within 45-days •Alternative mechanism must be in place to address Privacy Shield related complaints –Independent Dispute Resolution Provider (IDR) can be used for consumer data –DPAs must be used for employee data
• Must be provided free of charge to individuals • Companies must provide information regarding their IDR Provider in their privacy notice – Name of the designated provider and how to contact them –Whether the provider is EU or U.S. based
–That it is available free of charge
•Binding arbitration is available after other mechanisms have been exhausted Privacy Insight Series - truste.com/insightseries v
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New requirements for IDR Providers • Make information available to consumers about Privacy Shield and the IDR Provider’s role under Privacy Shield –Needs to be accessible from IDR Provider’s website –Link to the DOC’s Privacy Shield site –Explanation of how to file a complaint, dispute resolution process and timeframes, and potential remedies
•Report annually to the DOC regarding number, types, and outcomes of complaints received, and length of time to resolve. –Reporting in the aggregate
• IDR Providers must notify DOC of companies that fail to resolve Privacy Shield related complaints.
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Impacts on Business • Companies face stronger obligations for data transfers • Increased risk stemming from 3rd party processors, partners, and vendors • Privacy Shield language needs to be added to contracts, and be provided to the DOC upon request • Companies must respond to disputes faster through additional channels • Increased regulatory focus • Companies must document, maintain records and deliver reports on their compliance efforts
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Levels of Third Party Assistance
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Verification
Assessment
Dispute Resolution
Dispute Resolution mechanism (non HR)
✔
✔
✔
Dispute Resolution Seal/Button (non HR)
✔
✔
✔
Comprehensive Assessment – Customer and / or HR Data
✔
✔
Online Asset Review and Scanning
✔
✔
Findings Report
✔
✔
Searchable Audit Trail
✔
✔
DOC Registration Assistance
✔
✔
Ongoing Guidance
✔
✔
Remediation Assistance
✔
Verification Seal
✔
Verification Letter of Attestation
✔
Verification Listing for DOC
✔
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Looking Forward Caitlin Fennessy, Senior Policy Advisor, Privacy & Data Flows Team, Department of Commerce
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Looking Forward
How was the Framework designed to remain durable?
The GDPR European Court of Justice
Cooperation with EU DPAs
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Contacts Chris Babel
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cbabel@truste.com
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Thank You! Details of our 2016 Summer/Fall Webinar Series are now available. Register now for our next webinar on August 18 “Brazil & Beyond: Privacy Trends in Latin America� See http://www.truste.com/insightseries for the 2016 Privacy Insight Series and past webinar recordings.
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