Regulatory & Compliance: Data privacy: a global perspective on application and future regulation
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1 Regulatory & Compliance: Data privacy: a global perspective on application and future regulation Daniella Kafouris Associate Director Deloitte Risk Advisory
2 Data Privacy in South Africa Deloitte Touche Tohmatsu Limited
3 Protection of Personal Information Act 4 of 2013 PPIA Description The PPIA sets conditions for how information must be processed and how entities are to comply with global data privacy standards. It has been signed by the President and is now law. Entities will only have one year from the commencement date to comply or face significant consequences Data privacy regulates personal information, which is processed by public or private entities whether in hard or soft copy format Constitution published Law Commission finalised investigation PPIB published Portfolio Committee approved PPIB PPIB became law 3
4 Regulation of the entire data life cycle Personal Information Key Conditions Accountability Further Processing Security Safeguards Processing Limitations Information Quality Purpose Specification Openness Data Subject Participation Additional Requirements Special Personal Information Information about children Information Regulator Direct Marketing Trans-border Information Flows
5 Your duties and obligations 5. Information officer 6. Regulator 7. Reporting DS and loss 8. Security self audit 9. Special PI religion/ philosophy, race/ ethnicity, union, politics, health/ sexuality, biometrics, criminal allegations, child 10. Operator contract processing, security & reporting 11. Direct marketing* 12. Cross border*
6 Direct Marketing Approach in person or by mail or by electronic communication Contain sender contact details Electronic communication prohibited unless consent or customer (similar services/product) approach once but can opt out In person or by mail meet all lifecycle requirements (reasonableness and non-excessive, RP legitimate interest, DS can object, DS notified of collection, security, cross border, SPI)
7 Privacy protection globally Has Privacy Law Protection Constitutional coverage Law in Process Sectoral Laws No Data Protection Law 7 7
8 Privacy protection in Africa Morocco Burkina Faso Tunisia Western Sahara Cape Verde Islands Algeria Libya Egypt Senegal Guinea-Bissau Ivory Coast Mauritania Niger Mali Nigeria Ghana Liberia Benin Tonga Cameroon Gabon Chad Sudan Democratic Republic of Congo South Sudan Ethiopia Kenya Tanzania Central African Republic Somalia Uganda Rwanda Burundi Seychelles Comoros Has Privacy Law Protection Constitutional coverage Law in Process Sectoral Laws No Data Protection Law Namibia Congo Botswana Angola Zambia Mozambique Zimbabwe Swaziland Mayotte Mauritius Reunion South Africa Lesotho 8 8
9 What is the privacy impact? Information Regulator Data Subject Fines Imprisonment Self-reporting notification Post Up to R10 million 12 months to 10 years Criminal investigation Complaints Media Audit Website 9 9
10 What is the global movement towards compliance and privacy
11 Data Protection / Information Protection Authorities U.S. has no national data protection authority. UK Information Commissioner Office Privacy Commissioner of Canada Federal Trade Commission (FTC) State Attorneys General Federal financial regulators Japan has a similar consumer protection stance. Multiple regulators Bundesbeauftrager für den Datenschutz und die Informationsfreiheit Office of the Privacy Commissioner for Personal Data, Hong Kong? South African Information Regulator
12 Current privacy regulatory framework..
13 Proposed privacy regulatory framework..
14 What has gotten companies in trouble?
15 What has gotten companies in trouble? Examples of activities where noncompliance led to enforcement actions, lawsuits, or monetary fines: Failure to comply with the organization s privacy policies (especially when third parties are involved in processing data) Misrepresenting the purpose for collecting personal data Failure to disclose the means used to collect data, i.e., the use and/ or duration of cookies, web bugs, spyware, tracking technologies (especially in HR environment) Disclosing, sharing, or selling personal data to third parties contrary to the organization s privacy policy or legal/contractual framework (eg in Cloud environment) Export of personal data not in compliance with privacy laws of the originating country Misrepresenting the security protection and redress possibilities of personal data
16 What has gotten companies in trouble? Organizations that do not adequately manage the risk of compliance with privacy laws and regulations may face the following: BUT ALSO Suspension or stopping of data processing an data transfers Restructuring of local and global IT systems and processes Relocation of services and renegotiation of contracts with vendors, suppliers etc. Need to obtain consent to be able to lawfully use the data Loss of potential revenues or opportunities where use of databases is restricted Liabilities to customers, partners and others whose information is compromised Time lost taking systems offline to do the forensics necessary to find out what went wrong Extra Software and other upgrades to make sure the problem doesn t happen again Opportunity Cost (personnel performing all of these tasks are not doing any other revenue earning things that would be benefiting the company) Damage to company reputation can affect future sales efforts Loss of confidence with data protection authorities and/or employees/customers Joint & severe liability for supplier failures
17 Foreign Jurisdictions overview & actions taken to address e-commerce
18 Foreign Jurisdictions & Organisations Overview & Actions Taken European Union The EU list of electronically supplied services is as follows: i. Website supply, web-hosting, distance maintenance of programmes and equipment; ii. Supply of software and updating thereof; iii. Supply of images, text and information and making available of databases; iv. Supply of music, films and games, including games of chance and gambling games, and of political, cultural, artistic, sporting, scientific and entertainment broadcasts and events; v. Supply of distance teaching Deloitte Touche Tohmatsu Limited
19 South Africa Pre-2014 and post 2014 VAT Amendments
20 South Africa Post Electronic Service VAT Amendments VAT Treatment of Cross-Border Electronic Services Certain foreign suppliers will now be required to register in SA The South African VAT legislation was officially amended in December 2013 to address electronic services supplied by persons from an export country to a South African resident or where payment for the supply originates from a SA bank account. The amendments were due to come into effect 1 April 2014, however, this was postponed until 1 June From 1 June 2014 foreign suppliers supplying services which qualify as electronically supplied services will be required to register for VAT in SA at the end of any month where the value of supplies exceeds R50, Deloitte Touche Tohmatsu Limited
21 South Africa Post Electronic Service VAT Amendments The list includes the following main categories and then each category includes specific sub-categories: i. Educational services ii. iii. iv. Games and Games of chance Internet-based auction services Miscellaneous services (e.g. supply of e-books, music, etc.) v. Subscription service to a list of specific items South Africa does not make a B2B and B2C distinction Deloitte Touche Tohmatsu Limited
22 Deloitte TMT predictions 2014
23 Deloitte TMT predictions 2014 Tablets (BYOD) Wearable computing ($3 billion) E-visits 100 million globally Massive Open Online Courses (MOOCs) 100% VOD in SubSaharan Africa growth (1m)
24 Contact details Daniella Kafouris Deloitte Associate Director - Johannesburg Risk Advisory-Legal BA LLB HDIP Cyberlaw Certified Information Privacy Professional CIPP US / EU International Association of Privacy Professionals - Certified Trainer Member of IAPP Faculty Tel: + 27 (011) Mobile: +27 (0)
25 Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Deloitte provides audit, tax, consulting and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. The more than professionals of Deloitte are committed to becoming the standard of excellence. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the Deloitte Network ) is, by means of this communication, rendering professional advice or services. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication Deloitte & Touche. All rights reserved. Member of Deloitte Touche Tohmatsu Limited
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