Privacy and Data Security Risks in Cloud Computing

Cloud computing raises complex legal issues related to privacy and information security.  As legislators and regulators around the world grapple with the privacy and data security implications of cloud computing, companies seeking to implement cloud-based solutions should closely monitor this rapidly evolving legal landscape for developments.  In an article published on February 3, 2010, Lisa Sotto, Bridget Treacy and Melinda McLellan explore U.S. and EU legal requirements applicable to data stored by cloud providers, and highlight some of the risks associated with the use of cloud computing.

New UK Information Commissioner Sets His Agenda

The new UK Information Commissioner, Christopher Graham, shared his vision for data protection regulation at his first conference speech in London yesterday. As the keynote speaker at the 8th Annual Privacy and Data Protection Conference, chaired by Hunton & Williams partner, Bridget Treacy, Christopher Graham positioned himself as a fair, but tough, regulator who will not be afraid to use his strengthened enforcement powers.

The Commissioner noted that his vision for the Information Commissioner’s Office (“ICO”) is that of a well-funded regulator working to assist organizations with their data protection compliance activities and deal with any perceived non-compliance as early as possible. However, he made it clear that sanctions will follow for those organizations that choose not to comply with data protection laws.

Specifically, Christopher Graham noted that the recent increase in data protection registration fees in the UK will greatly improve his office’s funding and enable him to expand its focus on compliance and enforcement. He envisions a greater number of inspections or audits of data processing activities. Further, the Commissioner’s power to impose monetary penalties is expected to come into force in April 2010, and Christopher Graham expects that 20 or so organizations are likely to be fined within the first 12 months.

Overall, there was a sense that change is afoot at the ICO.