Companies can now sign on to a voluntary framework designed to smooth and secure the flow of private data between entities in the United States and in the European Union.
The EU-US Privacy Shield is a boon for companies that have been frustrated by a lack of clarity around transcontinental policies. It allows companies that operate in both markets to continue collecting and sharing customer data, but it requires that customers in Europe be given an explanation of how data will be used, as well as a mechanism of protest. The guidelines also encourage companies to think about the relevance of data before collecting it.
“The approval of the Privacy Shield is a milestone for privacy at a time when the sharing of data is driving growth in every sector, from advanced manufacturing to advertising,” said U.S. Secretary of Commerce Penny Pritzker, in a statement. “For businesses, the framework will facilitate more trade across our borders, more collaboration across the Atlantic, and more job creating investments in our communities. For consumers, the Framework will ensure you have access to your favorite online services and the latest technologies, while strongly protecting your privacy.”
Businesses that sign on to the framework will be publicly listed.
