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

Welcome from the Chair

David Reed, Editor, Data IQ

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Keynote address

Christopher Graham, Information Commissioner

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Questions Please put your questions to our speakers!

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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

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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

EU Data Protection: What can you do to make a difference?

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


• 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


• 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


• Telemarketing

– Move from opt-out to opt-in

– No cold calling to prospective customers

– No profiling or segmentation without individual consumer's consent


• 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

What can you do?

DMA lobbying toolkit

Lobby your MEPs

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

Questions Please put your questions to our speakers!

#dmadata

Refreshments and networking

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Rising to the privacy challenge

Richard Beaumont, Head of Service Development, Cookie Collective LLP

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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


• Business – stifles innovation,

increases costs • Privacy Groups – doesn’t go far

enough

Do we need change?

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.

How many brands can afford to ignore the expressed preferences of that many customers?

Google? Facing a group action for bypassing privacy settings in Apple’s Safari browser

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.

Change: Easy to Read Privacy Policies Layered Information Standardised Privacy Icons

Mozilla/Disconnect Icons

• Work in progress

• Released under creative commons

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

http://www.quidco.com/

http://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


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


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

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http://www.slideshare.net/SarahWright/future-forward-dma





Questions Please put you questions to our speakers!

#dmadata

Closing comments from Chair David Reed, Editor, DataIQ

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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

Sponsored by

Lunch Please join us for a bite to eat – DMA staff are on hand to answer

any of your questions.

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Data protection 2013 final slides

Documents

Transcript of Data protection 2013 final slides