5 years ago…White Paper proposes accountants as privacy guardians

12.03.99: Ernst & Young has proposed a solution for safeguarding online consumer data, which could bridge the gap between EU regulations and the self-regulatory stance held by the US.

The consultancy has put forward its own industry as the ideal monitor of US websites - rather than government agencies. Ernst & Young launched its White Paper just days before EU and US authorities meet for the latest round of negotiations over online data protection.

The paper, 'US Self Regulatory Framework for Online Privacy', proposes accountants and consultants add a seal of approval to websites which collect sensitive information. TrustE, which is spearheading the campaign for self-regulated privacy in US websites, has agreed to certify them.

Details of how much the accountants and consultants would charge for their services have not yet been finalised. But Anne Jennings, marketing manager at TrustE, told Silicon.com: "The co-branded seal would have a higher charge associated with it than TrustE's own seal, because it requires an on-site audit." TrustE currently charges between $299 and $4,999 for its seal of approval, depending on the size of the company.

A spokesperson for EU's DGXV - which handles copyright issues - could not confirm whether the proposal will be discussed at tomorrow's high-level data protection negotiations in Washington. Ernst & Young claims its proposal has already won the support of US government regulators.

12.03.04: The contentious issue of data protection between the EU and the US rumbled on for another year until the compromise that is 'safe harbour' was finally agreed in March 2000.

In recent years, however, it has gained more acceptance and a quick check of the US government's safe harbour website reveals almost 500 companies have now signed up, with most major blue chip firms on the list.