ICE: ‘New data laws will cut costs for industry’

ICE: ‘New data laws will cut costs for industry’

Wednesday, February 4, 2015 Totally Gaming

New European regulations on data protection could mean a lowering of costs but an increase in responsibility, according to David Schollenberger, commercial lawyer and head of gaming and leisure at Healys LLP.

Speaking at a panel session during the Cybercrime, Security and Regulatory Compliance conference at ICE Totally Gaming 2015, Schollenberger described the General Data Protection Regulation, which he expects to become law across the European Union next year, as a “major reform”.

He added that it is actually the first major change to data protection since the 1995 European Data Protection Directive. He explained the nature of it being a regulation, rather than a directive, means that it will become law immediately and will be enforced without flexibility amongst Member States.

He explained: “The reduction in cost will come because part of the legislation is that the registration of data agreements will only needed to be done in one nation and then be acceptable for any nation. This will be a great relief for the industry as it will reduce cost. However, there are possible extra costs, such as a fine of 2 per cent of turnover for companies that breach the new laws.

“The part of the regulation that will not be popular in the industry is the change to consent. Until now, companies that hold information about customers have been allowed to rely on implied consent for matters such as marketing, however explicit consent will now be a requirement.”

This change was a positive for the regulatory community, according to Garreth Cameron, who works for the UK’s Information Commissioner’s Commission (ICO) as group manager – business and industry.

Cameron, who highlighted the fact that the current proposals are still under discussion and therefore can still be altered, said: “We welcome the distinction between explicit and ordinary consent being removed. I cannot say as to what guidance we will give to companies about this change, but we currently say that all consent should be provable. Consent is not the only basis of data sharing, and for the right reasons data can be shared.”

In conclusion, Michael Mrak, Casinos Austria’s head of data privacy and anti-money laundering, was positive about the new regulations and said that companies should use business sense to deal with any extra responsibilities, not least the implications of last year’s ‘right to be forgotten’ ruling by the European Court of Justice.

He said: “I don’t think that the implications of the right to be forgotten, for example, are a big issue. I don’t think matters relating to that will change too much. It is all about transparency, and means that as long as you tell customers what data you are collecting and why then the right to be forgotten is bypassed.

“Anything to do with compliance can be combined in order to save on cost. Companies should not separate matters such as data protection and anti-money laundering as they can be looked at collectively to avoid duplication of task.”

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