UK Knowledge Safety and Digital Data Invoice launched into Parliament | Allen & Overy LLP


One other essential milestone for UK information safety reform was reached this week with the proposed legislative change revealed within the Knowledge Safety and Digital Data Invoice.

The Invoice was launched on 18 July, simply forward of the Parliamentary recess. Second studying will now happen within the autumn. Some commentators had speculated whether or not the Invoice would seem given the political uncertainty in Westminster and the pledge by Boris Johnson to not introduce any important new insurance policies till a brand new Prime Minister (and newly appointed Ministers and Cupboard) are in place. Ultimately, the Invoice was not considered new coverage given the earlier bulletins and information safety practitioners now have the welcome alternative to digest the element over the summer time. This can even embrace the intensive explanatory notes and influence evaluation in addition to the Invoice itself.

I beforehand trailed the reforms in my earlier weblog for the A&O Digital Hub again in June – The UK and international information safety panorama – seeing the larger image and navigating the maze. Since that weblog, on 17 June the Authorities issued its response to the 2021 session – Knowledge: a New Path. This has additionally set out the underlying coverage place and rationale for the adjustments and why sure proposals haven’t been taken ahead.

Normal view

Though these adjustments to UK information safety legislation are giant in quantity, the adjustments might be characterised as evolution relatively than revolution. While there are some adjustments as to how sure rights and ideas work, the core framework from the UK GDPR has been retained. The Division for Digital, Tradition Media and Sport (DCMS) has additionally indicated that it has briefed and up to date the European Fee in regards to the reforms, in search of to offer reassurance that retaining EU adequacy remains to be an essential consequence. The accompanying influence evaluation recognises the continuing significance of sustaining adequacy and the free movement of knowledge from the EU to the UK.

While the Invoice might be characterised as evolution, there are nonetheless many adjustments companies might want to think about forward of the brand new provisions coming into impact. Multi-national companies will welcome the extra flexibility and help for innovation however can even need the brand new UK necessities on accountability to be interoperable with their international information safety governance primarily based on EU GDPR. Companies may need to think about what influence sure adjustments can have in apply – for instance the change to permit a check of vexatious information topic entry requests is cited as a burden lowering measure, however companies might want to think about how a lot distinction this may make in their very own context.

There can even be an essential debate in Parliament on how these adjustments influence on the protections offered to the general public and whether or not the reforms proceed to take care of a excessive commonplace of knowledge safety within the UK. There can even be important debate in regards to the Invoice’s provisions that permit the Secretary of State to make additional provisions by rules, which might be topic to much less scrutiny than future major laws.

There are too many provisions within the Invoice to summarise in full right here however this weblog highlights key adjustments that companies ought to begin to think about.

The important thing areas of reform

  1. Decreasing obstacles to accountable innovation

    Automated choice making – Probably the most important reform below this banner is the change to Article 22 of the UK GDPR, on automated choice making. This has been an essential space of debate – companies see important alternatives to enhance the supply of providers and merchandise by AI and algorithms, and there are dangers from discrimination, bias and different harms from their deployment. The Invoice removes some facets of Article 22, and simplifies and clarifies different present provisions.

    The overall prohibition has now been eliminated and as a substitute there are situations to be met for selections involving particular class information. The prohibition is then changed with a collection of safeguards that have to be in place. The measures embrace situations reminiscent of enabling the information topic to make representations and procure human intervention about automated selections.

    Analysis – Different adjustments to help innovation and analysis have additionally been launched. These embrace clarifying the definition of analysis, clarifying the check for anonymisation and permitting for a broader method to consent and analysis. The adjustments can even permit for the “disproportionate effort” provision already in UK GDPR for use when immediately gathering private information for analysis functions.

    Authentic curiosity – There are additionally essential adjustments as to how the official curiosity might be utilized, eradicating the necessity for a balancing check in sure circumstances, although the need check stays. That is at the moment restricted to a slim checklist within the Invoice, as issues have been raised throughout session. This contains areas reminiscent of baby safeguarding. Provisions would permit the Secretary of State so as to add extra classes. Because it stands, this may primarily be of curiosity to the general public sector.

  2. Decreasing burdens on companies and delivering higher outcomes for individuals

    Accountability – One other key headline for companies is across the reform to accountability necessities. The Invoice removes the necessities for information safety influence assessments, necessary information safety officers and information of processing. The brand new accountability regime that replaces these provisions creates new necessities round evaluation of excessive threat processing, assigning senior duty inside organisations and streamlined file maintaining. These new provisions have higher flexibility; permitting companies to make selections on find out how to apply accountability associated to scale and threat of their very own operation.

    Knowledge topic rights – The opposite key space to contemplate is the change of check for refusing and charging for information topic requests, together with entry. The ‘manifestly unfounded and extreme’ check in UK GDPR is now changed by ‘vexatious and extreme’. The idea of vexatious requests is properly established in UK legislation, together with the Freedom of Data Act. The intention is to present controllers higher confidence in refusing requests that genuinely abuse the rights offered, significantly entry. This might embrace when requests are made associated to employment disputes. The Invoice additionally helpfully contains non-exhaustive standards to find out whether or not a request is vexatious or extreme. The Invoice additionally offers additional clarification of when time durations for compliance with a request might be prolonged.

    Cookies – There are additionally amendments to the Privateness and Digital Communications Laws (PECR) to take away the requirement for cookie consent when utilizing analytics. The Invoice refers to ‘statistical functions’ and it’s topic to sure situations reminiscent of no sharing and re-use of the information. The brand new exemption additionally covers the usage of cookies in areas reminiscent of software program set up and emergency conditions. With the goal to part out cookie banners absolutely in the long run, the Invoice additionally permits the Secretary of State to make rules on ‘Data expertise to allow consent to be given, or an objection to be made, robotically’. This may permit trade to develop new requirements and options. It was earlier tried with the ‘don’t monitor’ commonplace for internet browsers and would require worldwide engagement to be efficient.

    Consultant – There may be additionally an essential change for companies providing providers to the UK from third nations – the Invoice removes the requirement for representatives for controllers exterior the UK.

  3. Boosting commerce and lowering obstacles to information flows

    The Invoice introduces amendments to the worldwide switch provisions in Half V of UK GDPR. The adjustments introduce a extra proportionate and risk-based method. These adjustments search to deal with a few of the disproportionate impacts from the CJEU’s Schrems II judgment, while sustaining efficient safeguards.

    A brand new ‘information safety check’ is ready out in relation to transfers of private information to a 3rd nation. This strikes away from the adequacy check to contemplate whether or not information safety within the third nation is ‘not materially decrease’ than that below the UK GDPR. The check focuses on safety as an entire and permits for higher flexibility when assessing a 3rd nation eg judicial or non-judicial redress for information topics is now thought-about. The place the Secretary of State has not offered rules (ie the UK GDPR’s equal of the EU GDPR adequacy choice) and a controller or processor applies safeguards to allow worldwide transfers as a substitute (eg contractual clauses) the main target is now on the controller or processor appearing ‘fairly and proportionately’ when contemplating whether or not the information safety check is met.

  4. Delivering higher public providers

    These adjustments of are of much less curiosity to companies, however include some essential reforms to higher allow information sharing between public our bodies below the Digital Financial system Act 2015. There are additionally reforms that may allow companies offering providers on behalf of public our bodies to depend on the lawful foundation below Article 6(1)(e) of the UK GDPR.

  5. Reform of the Data Commissioner’s Workplace

Construction – Modernisation of the regulator types an essential part of the reforms, to carry the ICO’s governance in keeping with different important financial regulators eg Ofcom. This implies a transfer away from the company sole mannequin – to an Data Fee, with a statutory board, chair and CEO.

The adjustments place higher concentrate on regulatory engagement, together with enter into ICO steerage and codes, through panels and influence assessments for a very powerful outputs.

Authorities enter – There shall be higher path from Authorities, meant to create a extra constant and sure method. The Invoice offers the ICO with a brand new principal goal and duties together with the desirability of selling innovation. The Secretary of State may designate a press release of strategic priorities and the ICO should have regard to it (relatively than be certain to observe it). The assertion have to be laid in Parliament, to offer one other level of accountability. The Invoice additionally provides a provision for Secretary of State approval for statutory ICO Codes of Follow.

Extra powers – Below the Invoice the ICO features additional powers to compel technical experiences, drawing inspiration from the ability the Irish Knowledge Safety Fee already has within the Irish Knowledge Safety Act. A brand new energy additionally permits the ICO to situation interview notices when it suspects failings. Adjustments can even be launched to carry the advantageous threshold below PECR (at the moment £500,000) in keeping with GDPR, to deal with issues about nuisance calls and advertising.

Complaints – The ICO’s discretion to refuse sure complaints can also be enhanced, with the Invoice making it clear that the ICO can refuse a criticism if the controller has not but obtained one. Controllers are given 45 days to contemplate a criticism first. The Invoice provides additional necessities for controllers to facilitate the making of complaints. This may create a higher concentrate on the insurance policies and procedures that controllers have in place and the way they hyperlink to customer support.

The ICO will after all play an important function in supporting the brand new Invoice with new steerage and instruments. The ICO’s new company technique ICO25 was revealed on July 14 and is essential studying alongside the reforms.

Digital Identification

It’s also related to notice that the Invoice is just not solely targeted on information safety and accommodates essential new laws to allow a brand new digital id framework. It is a subject that intersects with information safety.

These reforms have been keenly awaited by many companies and sectors with digital enterprise fashions. The UK digital id system has fallen behind many nations and there’s a important alternative to refresh the UK method – enabling a trusted and federated market, supported by Authorities datasets and a belief framework. The Invoice units in place the important thing statutory constructing blocks to make this occur.

This features a requirement for the Secretary of State for DCMS to organize and publish the Digital Verification Providers Belief Framework, which would be the underpinning part of the brand new system, alongside a register and system of certification for these organisations who play a key function in making use of the framework.

Subsequent steps

It is going to be essential to trace amendments throughout the Invoice’s passage by Parliament – we wait to see detailed place of the opposition events for example.

Timing of implementation can even be a key query. The Authorities will announce this later.

There may be additionally now a sensible query of navigating between three items of laws – the UK GDPR, the Knowledge Safety Act 2018 and the brand new Knowledge Safety and Digital Data Act. Practitioners had hoped for higher consolidation to assist with the navigation problem and will probably be essential that DCMS and the ICO present the related sources to assist with this.

Over the approaching weeks and months the Knowledge Safety workforce at A&O will present additional evaluation on the implications in podcasts and blogs.


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