Improving data protection laws to boost e-commerce

27 April 2016
News

As the threat of cybercrime looms ever larger, countries are faced with the growing challenge of protecting virtual information and data.

As the threat of cybercrime looms ever larger, countries are faced with the growing challenge of protecting virtual information and data. This is especially true in the areas of e-commerce and international trade where secure online, cross-border transactions are vital for economic development.

Last week, the Commonwealth presented a paper on these issues at a conference in Geneva organised by the United Nations Conference on Trade and Development (UNCTAD). The week-long conference focussed on emerging e-commerce topics and trends.

In the area of data protection, the Commonwealth takes a three-dimensional approach: addressing frameworks for cybersecurity, updating data protection legislation and balancing access to information with privacy protections. These factors have a significant impact on trade and development, particularly for developing countries with weaker legislation around the exchange of electronic data.

Speaking at the conference, Elizabeth Bakibinga-Gaswaga, Legal Adviser at the Commonwealth Secretariat, said: “It is possible that the lack of a harmonized approach to data protection may present challenges to some aspects of international trade and supply of goods and services, mainly through legislative or contractual limitations to trans-border data flows to countries with less well developed data protection regimes.”

“Further harmonization of laws across the Commonwealth could facilitate cross-border data movement, with countries more able to guarantee each other equivalent protections,” she added.

In each of the 53 Commonwealth countries, data protection is regulated by domestic laws. There is no legally-binding regime applicable to all Commonwealth jurisdictions. To help member countries develop more effective national legislation in this area, the Commonwealth provides a model legal framework for control over collection, access to, use of, and dissemination of data stored in digital and paper-based systems.

This month, a group of legal experts met in London to begin the process of updating the Commonwealth Model Law on Computer and Computer Related Crime, which was adopted in 2002. This framework contains provisions on data protection, privacy, cybersecurity and cybercrime.

Outcomes from the meeting in Geneva and ongoing collaboration with UNCTAD will inform further research into the effects of data protection regulations and international data flows on Commonwealth trade.