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4 Bus. L. Rev. 1 (1983)

handle is hein.kluwer/blr0004 and id is 1 raw text is: Editor
Ruth Eldon BA
Assistant Editor
Rod Wright

January/February 1983
Vo14 No 1-2

Business
Law
Review

Editorial

Data Protection Progress
In the Editorial of our May 1982 issue we
expressed concern at the likely delay
before the data protection White Paper
proposals were enacted. The
introduction of the Government's Data
Protection Bill in the House of Lords at
the end of last year was thus viewed with
some satisfaction by those concerned at
the possible abuses of data banks.
The Bill has now received its second
reading in the Lords and, while the Bill
has generally been well received, there
are a number of points of detail on which
reservations have been expressed by the
legal profession and by industry.
The basic definitions of data and
related expressions in clause 1 of the Bill
have been criticised as too wide as they
could encompass, eg, word processing or
electronic mail systems and computer
accounting systems. Clearly the
registration and subject access provisions
should not cover such applications where
the main purpose is not the collation of
information about individuals. This
point could clearly be of considerable
importance to solicitors' practices.
Concern has also been expressed that
too many data users would be required to
register with the Data Protection
Registrar. The Registrar would have only
about 20 staff and the administrative
aspects of registration would thus be
likely to take up most of their time,
leaving little time for broader supervisory
functions such as investigation of
complaints. It would therefore seem
preferable for the registration
requirements to be more selective,
concentrating on large data users, on
users of very sensitive personal data and
on data which may be passed to third
parties without the permission of the data
subject. The Council of Europe
Convention, which forms the
background to the Bill, does not require
registration of data users and the CBI has
drawn attention to the adverse
experience of other European countries,
such as Norway, with universal
registration requirements.
Clearly if the wide registration

requirements are proceeded with, the
refusal of registration by the Registrar
would place a data user under severe
disabilities and the Bill contains
provisions for appeals against the
Registrar's rulings to a Tribunal. The
Registrar could, however, refuse
registration if he is satisfied that the
applicant is likely to contravene any of
the data protection principles scheduled
to the Bill or if he considers that the
information available to him is
insufficient to satisfy him that the
applicant is unlikely to contravene any of
those principles (clause 7(2)). This
would give the Registrar unacceptably
wide discretionary powers and the
provisions should be reformulated in a
more objective and neutral way.
The Bill covers personal data relating
to any identifiable living individual
including any expression of opinion
about him but not any indication of the
intentions of the data user in respect of
that individual. This would seem likely
to lead to considerable scope for disputes
over interpretation - for instance on
computerised staff records a statement
that an employee is not considered
suitable for promotion could come within
the scope of the Bill while a statement
that it was not intended to promote an
employee would not. Some further
thought is needed on this aspect.
The rights contained in the Bill for
data subjects to demand copies of data
relating to them held by a data user could
be open to abuse, eg by a concerted
campaign by a number of data subjects
connected with a pressure group. There
would seem a need for provisions for data
users to be relieved from complying with
demonstratively frivolous or vexatious
demands.
Lastly but importantly, concern has
been expressed at the extent of the
exceptions in the Bill regarding
information obtained or stored for the
purposes of the police, Inland Revenue,
Customs and Excise and the immigration
authorities and great care and vigilance is
needed regarding these provisions.
These reservations apart, we welcome
the Bill which we feel introduces valuable
safeguards in a dangerously
under-regulated field.

Contents
In Perspective
Landlord and Tenant: Repairs       3
Insolvency
When is an Asset not an
Asset?                             5
Employment
New Statutory Sick Pay Scheme      7
Trade Descriptions
Bargains Offers - Consultative
Document                          10
EEC
Inspections under the EEC
Competition Rules                 23
US Antitrust
Quantitative or Qualitative Criteria
For Merger Control               2.
City Newsletter
Infobank                          1
Middle East Newsletter            21
Brussels Newsletter              2.
American Newsletter               31
Book Reviews                      31
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Contributions, which should be typed,
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