87% clueless on cost of EU laws

A staggering 87% of UK firms are unable to estimate how much the shake-up of EU data laws will cost their business, according to a new survey, which also exposes that widespread ignorance of the new measures remains.
The independent survey, commissioned by the Information Commissioner’s Office, reveals just how unengaged most businesses are with the proposed EU data reforms being debated in Brussels. Some 40% of companies don’t even fully understand any of the ten main provisions being proposed.
That uncertainty also extends to businesses’ estimated expenditure on meeting their data protection responsibilities under the any new law. According to the ICO, this raises doubts about the evidence put forward by the both the UK and Brussels, figures produced by the European Commission and Ministry of Justice, in support of the changes.
The report, published by London Economics, was commissioned by the ICO to better understand the challenges the planned reforms would place on UK businesses, and included a survey of 506 businesses.
The study also found that 82% of survey respondents were unable to quantify their current spending on data protection. However, the estimated average costs of data protection are skewed by a small number of observations by large organisations, which are more able to put a figure on their data protection expenditure.
On piece of relatively good news is that the vast majority of companies with over 250 employees or processing more than 100,000 records already employ a member of staff focused on data protection compliance, a key part of EU proposals.
The report is being launched today (May 13) at the third European Data Protection Day conference in Berlin.
Information Commissioner Christopher Graham said: “Few people I’ve spoken to disagree with the need for an updated European data protection law to better meet the challenges of the 21st century. But to deliver real improvements, it’s crucial that legislation is developed that better reflects the way personal information is used today and will be used in the future.
“The key is finding the right balance between the theory and the practice of strong data protection rights. Inevitably, there will be burdens for those who have to deliver the benefits, whether businesses or regulators. The question is does the benefit justify the burden?
“There has been much talk of ‘what is best for business’, but that must be based on valid evidence. This reform is too important for guesswork.
“Today’s report is the latest contribution from the ICO to this debate. We’d urge the European Commission to take on board what it says, and to refocus on the importance of developing legislation that delivers real protections for consumers without damaging business or hobbling regulators.
“Similarly, businesses and other stakeholders need to constructively engage with the debate about burdens and the importance of privacy rights, while the process can still be influenced.”

3 Comments on "87% clueless on cost of EU laws"

Charlie McKelvey (@DM_editor) | May 14, 2013 10:39 am at 10:39 am |

87% clueless on cost of EU laws http://t.co/iMVqyH1drs
Data360 (@Data360online) | May 16, 2013 4:13 pm at 4:13 pm |

87% of firms are unable to say how the new EU #Data laws will affect their business. Unsure? Then speak to an expert http://t.co/wGGO47Ltav
EDITORIAL COMMENT | May 17, 2013 4:18 pm at 4:18 pm |

Charlie says: “More evidence that most firms are either too disinterested to care or simply in the dark. Advice on the issue is thin on the ground, to say the least. Firms will have to look at their own business practices before it’s too late…”