Data protection 2013 final slides
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Transcript of Data protection 2013 final slides
Data protection 2013
Friday 8 February
#dmadata
Supported by
Data Protection 2013 Friday 8 February
#dmadata
Supported by
Agenda
8.30am Registration and breakfast
9.15am Welcome from the Chair
David Reed, Editor, DataIQ
9.25am Keynote address
Christopher Graham, Information Commissioner
10.10am Questions
10.15am The new EU Data Protection legal framework – Changes and
impact on the direct marketing industry
Mathilde Fiquet, EU Legal Affairs Adviser, FEDMA
Caroline Roberts, Director of Public Affairs, DMA
10.45am EU data protection: What can you do to make a difference?
Chris Combemale, Executive Director, DMA
10.55am Questions
11.00am Refreshments and networking
11.20am Rising to the privacy challenge
Richard Beaumont, Head of Service Development, Cookie Collective LLP
11.50am Future forward – A look ahead
David Coplin, Chief Envisioning Officer, Microsoft
12.35pm Questions
12.55pm Closing comments from Chair
David Reed, Editor, DataIQ
1.00pm Lunch and networking
The new EU data protection legal
framework – changes and impact on
the direct marketing industry Mathilde Fiquet, EU Legal Affairs Adviser, FEDMA
Caroline Roberts, Director of Public Affairs, DMA
#dmadata
The new EU Data Protection Legal
Framework
Caroline Roberts – Director of Public Affairs, DMA UK
Mathilde Fiquet – EU Legal Affairs Adviser, FEDMA Mathilde Fquet
What is FEDMA?
•Federation of Direct and Interactive Marketing
•Membership - national associations and companies •Defending the interest of direct marketing in Brussels
•Involved in data protection discussions for more than 20 years • With industry self regulation codes of conduct approved by the Article 29 Working Party
Introduction
What is FEDMA
New rules and
Impact on Direct
Marketing
DMA view
The EU decision-
making process
Timing
Current position
The DMA’s actions
Introduction
Introduction
New rules and
impact on Direct
Marketing
DMA view
The EU decision-
making process
Timing
Current position
The DMA’s actions
Why now?
What is being proposed and why is it
important?
The EU decision-making process
Timing
DMA and FEDMA lobbying activity
Why now?
Introduction
New rules and
impact on Direct
Marketing
DMA view
The EU decision-
making process
Timing
Current position
The DMA’s actions
1995 European Directive (implemented into UK by
1998 Data Protection Act) showing its age…
1) New technologies and more complex
information networks
2) Lack of common European law and differences
in national implementation
3) Consumer concern over privacy
4) Data protection now fundamental right under EU
Charter of Fundamental Rights
The European Commission’s proposal
•The General Data Protection Regulation
•For the Online World
•Lack of understanding
Willing to address all issues raised by technological developments
as opposed to a directive
of the direct marketing industry, how we process data and do profiling
Introduction
New rules and
impact on Direct
Marketing
DMA view
The EU decision-
making process
Timing
Current position
The DMA’s actions
Impact on direct Marketing
•Potential opt-in for all communication channels •Potential ban of profiling •Potential ban on list trading and lead generation •Consent would have to be explicit •New information requirements and rights of the data subject, e.g Right to be Forgotten
Introduction
New rules and
impact on Direct
Marketing
DMA view
The EU decision-
making process
Timing
Current position
The DMA’s actions
DMA view
We welcome aim to update law, protect consumers
and simplify bureaucracy BUT……….
• Proposals do not achieve that
•Fairer balance needed
•Will stifle innovation, add to costs and place
unnecessary obstacles to e-commerce jobs growth
•Particularly harmful to SMEs
Introduction
New rules and
impact on Direct
Marketing
DMA view of
proposals
The EU decision-
making process
Timing
Current position
The DMA’s actions
FEDERATION OF EUROPEAN DIRECT AND INTERACTIVE MARKETING
Codecision
Proposes Legislation
Adoption
Into National Law
The process of EU decision-making
Introduction
New rules and
impact on Direct
Marketing
DMA view
EU decision-
making process
Timing
Current position
The DMA’s actions
Timing in the EU institutions
Introduction
New rules and
impact on Direct
Marketing
DMA view
The EU decision-
making process
Timing
Current position
The DMA’s actions
•Commission proposal for a Regulation in January 2012 • Parliamentary lead committee draft report: 9 Jan 2013
•Deadline for tabling amendments: 27 Feb 2013
•Expected vote in leading committee: April 2013
•Trialogue with Council: Autumn 2013
•Expected plenary vote (1st reading): End 2013
•Takes effect: 2 years after adoption – 2016?
Current position – Council of Ministers
Council of Ministers Working Group (DAPIX) meeting monthly
Initial indications that UK Government (and others) taking helpful and business-friendly stance
Many object to delegated acts; find it too prescriptive and would prefer a more principles- based approach
UK pushing for a directive, rather than a regulation – as is Germany
Introduction
New rules and
impact on Direct
Marketing
DMA view
The EU decision-
making process
Timing
Current position
The DMA’s actions
Current position - Commission
• 4th Dec 2012 – Commissioner Viviane Reding spoke in European Parliament
• Said Commission willing to look at:
• More risk-based approach with focus on type of data being processed
• Less prescription – although no detail
• Some exemptions for SMEs?
• Overall principles must be same for both public and private sectors
• Delegated and implementing acts –self-regulation perhaps for some?
Introduction
New rules and
impact on Direct
Marketing
DMA view
The EU decision-
making process
Timing
Current position
The DMA’s actions
UK – Commons Justice Select Committee
• DMA submitted evidence to Enquiry
• Focus on bureaucratic burdens, benefits of harmonisation, Right to be Forgotten
• ICO: “it cannot work”…”a regime no-one will pay for”.
• Report says: “We believe the Commission needs to go back to the drawing board and devise a regime
which is much less restrictive”
Introduction
New rules and
impact on Direct
Marketing
DMA view
The EU decision-
making process
Timing
Current position
The DMA’s actions
Ministry of Justice
Disagrees with Commission’s 2.3bn Euro savings – burdens imposed will far outweigh net benefits: in UK cost @ £100-360 million
Many unintended consequences, esp for SMEs
Changes to consent, profiling & definition of personal data particularly costly to industry
Likely knock-on effects for growth in technological sector and internet economy
Regulatory Impact Assessment quotes DMA’s figures & examples
Impact on behavioural advertising
Creates unrealistic expectations for consumers – R2BF proposal is “unworkable”
Introduction
New rules and
impact on Direct
Marketing
DMA view
The EU decision-
making process
Timing
Current position
The DMA’s actions
Key lobbying messages
Introduction
New rules and
impact on Direct
Marketing
DMA view
The EU decision-
making process
Timing
Current position
The DMA’s
actions
• Data is essential for economic growth
• Transparent and responsible use of
data is a vital business practice
• The proposed Regulation is bad for
consumers
• Need a proportionate data regime that
recognises that not all data is the same
Lobbying activity
• Lobbying UK Government & European institutions as the proposal goes through
• DMA working with FEDMA & other alliances – for collective lobbying of Council and Parliament
• Leading UK Data Industry Group response to the proposed legislation & participating in CBI lobbying
• Research on consumer attitudes to privacy and on economic value of the dm industry.
Introduction
New rules and
impact on Direct
Marketing
DMA view
The EU decision-
making process
Timing
Current position
The DMA’s
actions
Lobbying activity
• Contact with key UK MEPs
• Promoting suggested amendments to Regulation – to UK MEPs and via FEDMA to others
• Lobby UK political leaders to influence their MEPs in EU Parliament
• Continue to engage with key Commission, Council and Parliament civil servants and advisers
• Providing DMA members with toolkit for lobbying MEPs
Introduction
New rules and
impact on Direct
Marketing
DMA view
The EU decision-
making process
Timing
Current position
The DMA’s
actions
Lobbying activity
FEDMA co-ordinating lobbying by DMAs in 27 Member States
Meetings in Brussels with key individuals in Council, Commission & Parliament, e.g. Council Working Group; key MEPs & advisers; party groups
FEDMA position papers on priorities for industry + draft amendments to text
Lobbying directly where there is no national DMA
Data Industry Platform & Industry Coalition on Data Protection - collective lobbying
Introduction
New rules and
impact on Direct
Marketing
DMA view
The EU decision-
making process
Timing
Current position
The DMA’s
actions
What does it mean for you?
• The end of one to one marketing as we know it
• Less targeted and more generic communication
• £47 billion of lost sales
• More admin costs for business
• Reduced innovation
What could it mean for you?
• Online marketing
– Analytics impossible as no tracking of IP addresses
– Profiling is very limited without the explicit consent of the consumer
– Tailored online experiences will require explicit consent
– Ads can no longer be targeted to individuals
– Data can no longer be used to target future marketing activity
– Debate over whether legacy data will have to comply with the new rules
What could it mean for you?
• Data industry
– Most current activities will become heavily restricted
– Data will become impractical and expensive both to source and keep up-to-date
– Legacy data might be required to comply with new regulation, prospect lists could be decimated
– List broking severely restricted
What could it mean for you?
• Direct mail
– Move from opt-out to opt-in: explicit consent needed to send any message to any recipient, with the exception of existing customers
– Existing databases may not be usable under regulation: could decimate prospect lists
– Demographic information will have to be wiped
What could it mean for you?
• Telemarketing
– Move from opt-out to opt-in
– No cold calling to prospective customers
– No profiling or segmentation without individual consumer's consent
What could it mean for you?
• Email marketing
– No tracking data allowed without explicit consent, making effectiveness extremely difficult and unreliable to measure
– Profiling and segmentation will become difficult and patchy
– Tailored content will be hard to target and harder still to measure
Write to your MEPs
• Stand up for your business in 4½ easy steps:
1. Multiple MEPs represent your region, and each one has a say so contact them all
2. Template letters carry little weight: send a personal letter
– Tell them who you are, where you're based, what your business does, how many people it employs and the approximate value of your business and its contribution to the local economy
3. State your business view:
– how much your business relies on customers' data and
– what your prospects would be like if it was taken away
4. Ask them to fight for the fair interests of business
4½. If you can visit your MEP(s) in person.
Next steps
• DMA will continue to lobby in Council of Ministers
– UK-working with AA and all industry bodies
– Working with Fedma and European Data Industry Platform on lobbying other EU countries
• Members lobby EU Parliament
– Lobby MEPs in your region
– Lobby UK MEPs on key committees
Rising to the privacy challenge
Richard Beaumont, Head of Service Development, Cookie Collective LLP
#dmadata
The Cookie Collective is specialist provider of practical cookie law and online privacy solutions for website owners. Governor Technology is a web development agency, specialising in .NET technology development, Umbraco CMS websites, full service email marketing, and Windows 8 app development
Who We Are
Does anybody like the proposed DP reform?
• UK Gov’t – too prescriptive • ICO – cuts off their income
Does anybody like the proposed DP reform?
• Business – stifles innovation,
increases costs • Privacy Groups – doesn’t go far
enough
Do we need change?
• Mistrust of business use of personal data is increasing.
• 43% British consumers don’t trust businesses with their information online
(2013 Truste Privacy Index)
AND…
• 91% of consumers say they avoid doing business with companies they do not believe are protective of their online privacy
The Privacy Arms Race
• The most popular add-on for Firefox is an ad-blocker.
• 8% of desktop, and 20% of mobile FF users have DNT on.
The EU believes that clear, consistent rules and strong consumer protections will boost both trust and growth.
Predictions: • Greater privacy protection is
inevitable • Disruption to existing practices and
business models is highly likely. • Digital marketing will be
particularly impacted
3 Key Changes
1. Practices will need to be more transparent
2. Obtaining data will be more difficult
3. There will be increased responsibility for curating data
Transparency
Privacy policies are long and unreadable, often deliberately Only 22% of US consumers trust privacy policies as sources of guidance.
Obtaining Data
• Reduction in amount of data collected is a key intended consequence of the regulation.
• Especially ‘un-volunteered’ data.
Two practical responses • Increase the rate at which people
will volunteer data
• Obtain greatest value from data collected.
Increasing Opt-in
Expect to see more and clearer examples of explicit value exchanges Lots of information sites already require registration to access high value services
Increasing Opt-in
Rise of direct financial exchange loyalty schemes www.quidco.com www.topcashback.co.uk
Legitimate Interests Gives greater freedom to first parties Lead to a rise in first party targeting technologies Changes in balance of relationships, not user experience
Increasing Value: Big Data
Is the reform then enemy of big data? Creates smaller data sets, fewer connected data points
Increasing Value: Big Data
Limiting factor is actually the amount being analysed, not collected. Total amount of data on the web has doubled in the last 2 years. Barely 1% of that is being analysed
Increasing Value: Big Data
Limiting collection incentivises better economic use of that which is collected. Could easily lead to an increase in overall value, even is volume decreases.
Curating Data
Big changes here are in the B2C interface: • Free subject access requests • Right of Data Portability • Right to be forgotten
Curating Data
Expect new and updated software products and services to reduce costs: • Web interfaces for requests • Direct access and control
Curating Data
Right to be forgotten particularly difficult. Even within a single organisation. Will need new products to automate finding and deletion of data across business systems
A Cautionary Last Note Change is inevitable in any market sector. Sometimes it pays to fight it, but you also need to know when to start adapting.
Future forward – A look ahead Dave Coplin, Chief Envisaging Officer, Microsoft
Please find these slides at
www.slideshare.net/SarahWright/future-forward-dma
#dmadata
What does data sharing mean to
consumers? Wednesday 27 February 2013
Leading brands including Virgin Insight discuss how marketers can gain
their customers trust and earn their data.
Visit the reception desk for more information
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