By Martin Banks - 25th January 2012
Personal data is in today's world the currency of the digital market
Viviane Reding
The commission has announced radical plans under which companies face being fined up to two per cent of their annual turnover if they breach proposed EU data laws.
The proposals were put forward on Wednesday by Viviane Reding, the EU commissioner for justice, fundamental rights and citizenship.
It is part of a new EU directive and regulation on the issue.
Reding said the move was an attempt to make companies such as Google or Facebook give people more control of their personal data. Failure to do so means they could be fined up to €1 million.
The proposal would force all companies to get explicit consent from customers to collect their data, explain how it will be used, and allow users to totally erase their information.
Outlining the plan at a news conference in Brussels, Reding said it was important for EU citizens - particularly teenagers - to be in control of their online identities.
"My proposals will help build trust in online services because people will be better informed about their rights and more in control of their information," she said.
"Personal data is in today's world the currency of the digital market, and like any currency it has to be stable and it has to be trustworthy," added Reding.
"Only if consumers trust that their data is well protected, will they continue to entrust businesses and authorities with it, buy online, accept new services," she said.
"Some say it goes too far, and the others say it does not go far enough. I say I am somewhere down the middle," she said.
Reding, who said a survey showed that 72 per cent of Europeans worry that their data may be misused, denied that the draft legislation had been diluted.
The proposal still has to go to parliament and national governments for final approval.
