THE DATA PROTECTION LEGAL FRAMEWORK AND ITS IMPLICATION FOR E-COMMERCE


1.0       Data protection laws are bound to become a major source of contention in the push to increase international commerce especially the E-Commerce because of the globalization of markets and increased use of the Internet.

2.0        In fact, these laws have already created tension: those who wish to utilize the ‘boundary free’ nature of the Internet are realizing that data protection laws create de facto boundaries that can be just as effective physical borders.

3.0        Information privacy is an important national concern as each country tries to bolster confidence in E-Commerce by providing data protection that it citizens want, without creating excessive regulatory compliance costs.

4.0       Information privacy concerns arose long before the Internet, however, and have been the subject of policies and regulations throughout the world for many years.[1]

5.0        The regulatory models on how to protect individuals’ personal information varies significantly around the world.

6.0        The European Union’s (‘EU’) approach, comprehensive command and control data protection model with precise rules governing the handling of personal information, occupies one end of the regulatory spectrum.

7.0        The United Kingdom (‘UK’) legislation governing data protection is the Data protection Act, 1998, (‘DPA 1998’) which flows directly from the EU Directives.[2]

8.0        On the other end is the self-regulatory and sectoral model like the United States that relies largely upon a market-based solution to privacy.

9.0       In the middle is the Australian model, often called a ‘co-regulatory’ or ‘light touch’ model.[3]


[1]               Alexandra T. McKay, "Privacy Act: A First Step On The Road To Privacy" (2005) 14 Pacific Rim Law & Policy Journal,online,accessed on May 24th 2006,available at http://web.lexis-nexis.com/universe/document
[2]               Peter Carey,Data Protection: A Practical Guide to UK and EU Law, 2nd ed., (Oxford University Press Oxford 2004),
[3]               Alexandra T. McKay, "Privacy Act: A First Step On The Road To Privacy" (2005) 14 Pacific Rim Law & Policy Journal,online,accessed on May 24th 2006,available at http://web.lexis-exis.com/universe/document

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