FCA issues compliance reminder for Buy Now Pay Later platforms
Buy Now Pay Later: FCA issues reminder to firms to comply with consumer protection legislationRead more
Whilst the content of the Data Reform Bill has not yet been produced, a key issue the Government looks to address is reducing the administrative burden that the UK GDPR places on organisations by removing the red tape around data use. The exact form and extent of the Data Reform Bill remain unclear at this stage, however, some of the important areas the Government is looking to address are noted below:
It is clear that the Government is adopting a business-friendly approach by looking to ease the administrative constraints that the UK GDPR places on organisations in order to promote economic growth and efficiency. This is very much a positive for organisations that may no longer be bogged down with extensive and complex compliance requirements. Furthermore, the Data Reform Bill looks to simplify the regulatory environment around data privacy, giving organisations more clarity on their obligations, in turn reducing the risk of non-compliance.
Whilst these reforms are likely to be welcomed by businesses, the Government’s economic-facing reform may have an impact on the data rights of individuals. For example, the reform around automated decision-making could have an adverse effect on individuals, as artificial intelligence often has built-in bias which may lead to inadvertent discrimination, particularly in the context of employment-related decisions.
Under the current data protection regime, the level of protection for personal data is broadly the same in the UK as it is in the EU.
The Government must therefore be careful not to balance the scale too in favour of businesses as this could impact on the ‘adequacy’ of the UK’s data protection regime for the EU, which currently allows for data to flow freely between the two. The EU’s adequacy decision contains a ‘sunset’ clause, meaning the decision will expire in 2025 to account for the possibility of the UK’s further divergence from the GDPR post-Brexit. The proposed data reform could therefore lead to the EU withdrawing its adequacy decision for the UK, which in turn, could lead to highly extensive and costly compliance obligations on businesses transferring data from the UK to the EU and vice versa.
The Data Reform Bill is currently in the very early stages, and it will likely be subject to much debate over the coming months, meaning that its final form is currently unclear. However, what is clear is that the UK’s data protection regime is undergoing significant change, therefore, meaning that organisations within the UK must keep up-to-date with its evolution, particularly in the context of data transfers to the EU.
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