TrustE delivers breakthrough for data protection wars

The prospect of long-term wrangling between EU and US authorities over data protection has been side-stepped by an industry-led compromise.

Silicon.com learnt today that TrustE, the US forum set up to monitor industry self-regulation of data protection, is working to build EC guidelines into its kitemark scheme.

TrustE offers an online seal of approval to any business that does not make the personal details of its customers available to third parties. Although well-managed, the licensing scheme is not as stringent as the EC directive on data protection, which is due to be enforced across Europe.

Adrian Friend, European director of TrustE, denied the move is a complete change of strategy and said he hopes to set up the two schemes in parallel to let businesses select whichever one fits their trading needs.

Francis Aldhouse, UK deputy data protection registrar, welcomed the news. "There have been some difficult discussions between the European Union and the United States about protecting global networks," he told Silicon.com.

Aldhouse added: "It's very important to build bridges across the Atlantic based on the accepted international principles, and the data protection registrar very much welcomes the news that a US-based organisation like TrustE is going to set up a means of protecting privacy on the Web, based on the EU directive."

TrustE's move is expected to boost consumer trust in global ecommerce and limit the risk to businesses of costly international lawsuits. But Friend made it clear the US model will probably remain dominant in the US domestic market.

He told Silicon.com: "I hope to launch a hybrid kitemark in the near-term. We already have a draft licence in place, but acceptance from the EU could take up to six months."