EU ratifies data protection rules

The European Commission has approved an alternative set of contractual clauses to allow businesses to safeguard themselves when transferring personal customer data outside of the European Union.

The legislation follows four years of negotiation between the EC and seven prominent business associations, including the CBI and the International Chamber of Commerce, who have been pushing for the rules.

The EC says the clauses provide a similar level of data protection to those outlined in 2001 but are more 'business friendly' in terms of auditing requirements and liability.

'Our clauses offer the same level of data protection as the Commission's clauses but use more flexible mechanisms that are more in line with business realities,' said Christopher Kuner, chairman of the International Chamber of Commerce's privacy and protection of personal data taskforce.

The EC's single market commissioner Charlie McCreevy, said: 'The business community has shown a serious commitment towards data protection and the Commission has carefully listened to business needs.'

'That is good for EU citizens, whose privacy is better protected, and for our companies, whose competitiveness is reinforced,' he said.

From April businesses will be able to use the clauses as a legal basis for transfers to data controllers outside of Europe.