EU vs. US on data protection

Prison Planet by AZRainman (cc) (from Flickr)
Prison Planet by AZRainman (cc) (from Flickr)

Last year I was at SNW and talking to a storage admin from a large, international company who mentioned how data protection policies in EU were forcing them to limit where data gets copied and replicated.  Some of their problem was due to different countries having dissimilar legislation regarding data privacy and protection.

However, their real concern was how to effectively and automatically sanitize this information. It seems they would like to analyze it off shore but still adhere to EU country’s data protection legislation.

Recently, there has been more discussions in the EU about data protection requirement (See NY Times post on Consumer Data Protection Laws, an Ocean Apart and the Ars Technica post Proposed EU data protection reform could start a “trade war”).  It seems, EU proposals are becoming even more at odds with current US data protection environment.

Compartmentalized US data privacy

In the US, data protection seems much more compartmentalized and decentralized. We have data protection for health care information, video rentals, credit reports, etc. Each with their own provisions and protection regime.

This allows companies in different markets pretty much internal control over what they do with customer information but tightly regulates what happens with the data as it moves outside that environment.

Within such an data protection regime an internet company can gather all the information they want on a person’s interaction with their web services and that way better target services and advertising for the user.

EU’s broader data protection regime

In contrast, EU countries have a much broader regime in place that covers any and all personal information.  The EU wants to ultimately control how much information can be gathered by a company about what a person does online and provide an expunge on demand capability directly to the individual.

EU’s proposed new rules would standardize data privacy rules across the 27 country region but would also strengthen them in the process.  Doing so, would make it much harder to personalize services and the presumption is that the internet companies trying to do so would not make as much revenue in the EU because of this.

Although US companies and government officials have been lobbying heavily to change the new proposals it appears to be backfiring and causing a backlash.  EU considers the US position to be biased to commerce and commercial interests whereas, US considers the EU position to be more biased to the individual.

US data privacy is evolving

On this side of the Atlantic, the privacy tide may be rising as well.  Recently, the President has recently proposed a “Consumer Privacy Bill Of Rights” which would enshrine some of the same privacy rights present in the EU proposals. For instance, such a regime would include rights for individuals to see any and all information company’s have on them, rights to correct such information and rights to limit how much information companies collect on individuals.

This all sounds a lot closer to what the EU currently has and where they seem to want to go.

However, how this plays out in Congress and what ultimately emerges as data protection and privacy legislation is another matter. But for the moment it seems that governments on both sides of the Atlantic are pushing for more data protection not less.

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Cloud and social media data privacy rights

safe 'n green by Robert S. Donovan (cc) (from flickr)
safe 'n green by Robert S. Donovan (cc) (from flickr)

There was an minor announcement yesterday, which said something to the effect that data stored in the cloud in Europe and other locations was not immune to US Patriot act access.

This concern was mainly aired by one cloud provider but they mentioned any US company would need to provide the same access to data located anywhere.

I suppose living in the US, this sort of access should not be a concern for me but somehow this struck a chord. Does this mean that anything I store in the cloud, search on the internet, publish to social media is essentially available to any government entity that deems it important to access  – yes, probably so.

The Fourth Amendment to the US constitution established the right of individuals to not be subject to “unreasonable search and seizure of property”.  One could readily extend the definition of property to data.  However somewhere in case law this provision has been modified to imply that such rights only apply to property that a person has a reasonable expectation of being private.

Data property rights outside your office

So where does that leave the data property rights:

  • Social media – seems to me that you waive any property rights to the data you submit to social media the moment you hit enter. For example, in Twitter any tweets you create are broadcast to all your followers and anybody searching on tweet text (unless you restrict your tweets) can see it.  Places like Facebook, Flickr, Youtube, and other social media provide a service where updates are broadcast automatically to anyone searching on that information unless you lock it down and secure access to only a limited set of “friends”. But in the most common case, data in social media is public information (although perhaps owned by the social media company).
  • Cloud data – privacy rights may or may not exist in the cloud, it depends on what you store there. Lets say you start backing up your laptop/desktop to the cloud.  Such data is in a format that is likely proprietary to the particular backup application you use but that doesn’t mean you have any reasonable expectation of privacy because those formats are known to the US company that created it.   As such, plain text data, placed in the cloud probably has no expectation of privacy.  Encrypted data is another story however.

Establishing reasonable expectations of privacy

So what can someone do today to establish “expectations of privacy”

  1. Abandon social media.  If you can’t do that, be very careful of the data you expose there.
  2. Abandon cloud storage.  If you can’t do that encrypt your data before it moves or is copied to the cloud.  But you must understand who owns the encryption keys and where they reside.  If the cloud provider owns the encryption keys and they can be found in the cloud, then reasonable expectation of privacy IS not present.  To really secure data, encrypt the data yourself with an application not associated with the cloud service, with key phrases known only to you and stored outside the cloud only.  Given all that one can assume a “reasonable expectation of privacy”.

Yes, either of these approaches are painful. Yes, they make using such facilities more complex, painful and time consuming but it’s the only way to establish a privacy rights for your data.

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Being an active user of Twitter and blogging, I have no reasonable expectation of privacy for this data but that doesn’t mean I relinquish the rest of my data to unrestrained access.

For some time now I have been considering the use of cloud backup but have been reluctant for my data to leave my control. Such fears, now seem to have a factual component to them.  Nonetheless, cloud data can be private and secure but only if one safeguards the data before it leaves your premises.

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