European Union Issues Guidance on Privacy Notices; New Notices Make It Easier for Consumers to Understand, Compare Policies.

NEW YORK -- The European Union's committee of data privacy commissioners (the "Article 29 Working Party") has adopted a plan to create corporate privacy notices that are easy for consumers to understand and to compare with the notices of other companies. This followed consultation with industry, consumer groups and data protection commissioners outside of the European Union.

"This is a significant step in creating a common, worldwide platform for privacy notices," said Martin Abrams, executive director for the Center for Information Policy Leadership at global law firm Hunton & Williams, which facilitated a Berlin workshop that led to the consideration of the plan by the Article 29 Working Party. European consumer advocates and data protection commissioners also participated in the Berlin workshop.

The Article 29 Working Party adopted the joint report (or "common position") on privacy notices at its November 25-26 meetings; it is now published on the EU Data Protection website. The multi-layered approach may facilitate the use by companies of a common notice throughout Europe, using "very short," "condensed" and "complete" notice options. The Article 29 Working Party's action does not result in any reduction in the information given to consumers in privacy notices, rather it will increase transparency by allowing notices to be given in a more easily understandable format.

Business leaders hailed the news. "This regulatory guidance enables us to create user-friendly notices," said Peter Fleischer, Microsoft's European public policy leader. He noted that Microsoft conducted focus group research in Germany and Hong Kong that was cited in the common position. "Consumers want privacy notices that are short and easy to read. The collaboration between the regulators and industry will allow us to give consumers what they want," said Fleischer.

Lucy Hodgson of Procter & Gamble believes these notices will help her company become even more consumer-driven. "The short notice allows us to tell consumers about our data collection while maintaining the integrity of our consumer communication." Procter & Gamble already has a condensed privacy notice on its website.

"The challenge now is to educate the European business community about this new privacy notices platform. CIPL is looking forward to working with European data protection commissioners to conduct this education," said Christopher Kuner, the Brussels-based leader of Hunton & Williams' international privacy practice.

Malcolm Crompton, former Australian Data Protection Commissioner, suggested businesses should not underestimate the significance of this action. "Multi-layered notices are on the work-plans of both the OECD and APEC, and the US financial services regulators are conducting research on privacy notices," he said. "This concept has real momentum." Mr. Crompton organized the 25th International Data Protection Conference mentioned in the common position.

"There is still a great deal of work to be done," Abrams concluded. "Business needs to embrace this standard and work with the Data Protection Commissioners to develop best practice examples. Consumer advocates need to be involved in this process as well."

"Consumer and privacy advocates must be part of the process to assure consumer interests are respected," agreed Paula Bruening of the Center for Democracy and Technology. CDT has lead an ongoing dialogue between consumers, business and government on effective privacy notices.

For more information on the common position, visit the WP 29 website at http://europa.eu.int/comm/internalmarket/privacy/docs/ wpdocs/2004/wp100en.pdf. (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.) For more information on CIPL's Multi-layered Notices Project, contact either Christopher Kuner at +32.2.643.5856 or Martin Abrams at 404.888.4274.

The Center for Information Policy Leadership at the global law firm Hunton & Williams LLP was created to provide businesses, consumers and policymakers with thought leadership and strategic consulting on all aspects of information policy, privacy, security and intellectual property issues. Member companies include Microsoft, Procter & Gamble, IBM, Citigroup, Hewlett-Packard, Eastman Kodak and Acxiom, among other US- and European-based companies. Mr. Abrams serves as the firm's Senior Policy Advisor and is not an attorney.

Hunton & Williams LLP provides legal services to corporations, financial institutions, governments and individuals as well as a broad array of other entities. Since its establishment in 1901, Hunton & Williams has grown to more than 850 attorneys serving clients in 100 countries from 17 offices around the world. While Hunton & Williams' practice has a particular emphasis on commercial litigation, corporate and structured finance, corporate transactions, energy and environmental law, governmental relations and intellectual property, the firm's depth and breadth of experience extends to more than 60 separate practice areas.