The UK’s data protection reforms are set to clear the final hurdle next week, with the so-called “third reading” now scheduled for November 29, meaning the changes are likely to come into effect in the new year.
Even so, there are a raft of amendments to the Data Protection & Digital Information (No 2) Bill which will be considered before it receives Royal Ascent.
The legislation has been backed by the DMA, which last week repeated its call for Parliament to pass the legislation “without hesitation” after it was unveiled in the King’s Speech – easing fears that it could be kicked into the long grass.
The industry body, which originally opposed many elements of the Bill before it was asked to contribute to a revised version, maintains small business owners want and need regulation that is fit for purpose to help the digital economy grow and evolve.
Last month, the DMA published research with showed that two thirds of SMEs (66%) support updated and modernised data privacy regulation to address inherent challenges of GDPR.
In addition, most SMEs (74%) agree that the processing of personal data is vital to the growth and success of their business yet nearly half (48%) believe GDPR introduced unnecessary bureaucracy to businesses, and well over a third (37%) say it simply does not work for small businesses.
Meanwhile, just over two-fifths (43%) claim their business marketing operations have been stunted by GDPR and nearly a third (31%) claim GDPR has caused them to get rid of a lot of their customer database.
The DMA maintains one of the most significant reforms is the greater clarity offered on what constitutes the use of legitimate interest in marketing activity, a move that it claims will encourage more businesses to use it as a lawful basis for data processing where appropriate.
It believes many businesses did not have confidence they could rely on legitimate interest as the main legal basis for data collection for marketing – thereby reducing opportunities to attract new customers and to know their existing customers better.
However, critics of the reforms refuse to be silenced, with the Open Rights Group recently stepping up its attack by claiming the DPDI favours big business as it erodes consumers’ rights to find out what data is held on them; others claim the reforms do not go far enough.
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