After the Positive Report of the European Commission, the Article 29 Working Party Presses for Improvements of the Privacy Shield

December 18, 2017

Following the generally positive assessment of the EU-U.S. Privacy Shield framework (the “Privacy Shield”) by the European Commission further to its first annual review, the Article 29 Working Party (an advisory group consisting of representatives from national data protection authorities together with the European Commission), released its own opinion (the “WP29 Opinion”), which was more critical and called for immediate actions to be taken on the part of the United States.

While the Article 29 Working Party praised some improvements made by U.S. authorities in terms of transparency and surveillance, the WP29 Opinion noted significant outstanding issues which ought to be remedied before the second annual review of the Privacy Shield or even earlier. In particular, the Article 29 Working Party expressed concerns relating to the supervision of U.S. surveillance programs, the processing by U.S. authorities of personal data transferred under the Privacy Shield for national security purposes and the implementation of redress mechanisms available to individuals located in the EU against U.S. companies that are not using personal data in accordance with their commitments under the Privacy Shield. The Article 29 Working Party has set out as priorities the appointment of an independent Ombudsperson entrusted with the appropriate powers, the clarification of internal procedural rules relating to the interaction between the Ombudsperson and other intelligence or oversight bodies (including declassification rules) and the appointment by the U.S. administration of the members of the Privacy and Civil Liberties Oversight Board contemplated by the Privacy Shield. According to the Article 29 Working Party, those priority issues should be resolved by May 25, 2018, which is the deadline for compliance with the EU’s General Data Protection Regulation (GDPR) (please refer to our prior Alert Memo in that regard).

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