06 Sep 2001
The European Commission has set out model contract terms to help companies protect data that is being transferred out of the European Union.
The Commission agreed standard clauses last week that can be included in contracts between firms to protect data in line with EU laws.
"It will make the conduct of business easier," explained Ian Bourne, policy manager at the UK Information Commission. The clauses may also save firms the expense of consulting lawyers, he added.
Rupert Battcock, a solicitor at law firm Nabarro Nathanson, said: "With the Data Protection Act firms should have been considering this anyway. The model terms mean there is no excuse."
Contracts are not the only way of complying with the law. "US firms can sign up to the Safe Harbour agreement [covering European data transferred to the US] which imposes less rigorous stipulations," said Struan Robertson of law firm Masons.
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