What lies behind the Information Commissioner’s recent reference to “sandbox regulation”?
The government minister with responsibility for data protection, Matt Hancock, recently spoke to the Leverhulme Centre. He touched on data protection:
a new Data Protection Bill in this Parliamentary Session…will bring the laws up to date for the modern age, introduce new safeguards for citizens, stronger penalties for infringement, and important new features like the right to be forgotten. It will bring the EU’s GDPR and Law Enforcement Directive into UK law, ensuring we are prepared for Brexit.
All pretty standard stuff (let’s ignore the point that the “right to be forgotten” such as it is, exists under existing law – a big clue to this being that the landmark case was heard by the CJEU in 2014). But Hancock went on to cite with approval some recent words of the Information Commissioner, Elizabeth Denham:
I think the ICO’s proposal of a data regulatory “sandbox” approach is very impressive and forward looking. It works in financial regulation and I look forward to seeing it in action here.
This refers to Denham’s recent speech on “Promoting privacy with innovation within the law”, in which she said
We are…looking at how we might be able to engage more deeply with companies as they seek to implement privacy by design…How we can contribute to a “safe space” by building a sandbox where companies can test their ideas, services and business models. How we can better recognise the circular rather than linear nature of the design process.
I thought this was interesting – “sandbox regulation” in the financial services sector involves an application to the Financial Conduct Authority (FCA), for the testing of “innovative” products that don’t necessarily fit into existing regulatory frameworks – the FCA will even where necessary waive rules, and undertake not to take enforcement action.
That this model works for financial services does not, though, necessarily mean it would work when it comes to regulation of laws, such as data protection laws, which give effect to fundamental rights. When I made enquiries to the Information Commissioner’s Office (ICO) for further guidance on what Denham intends, I was told that they “don’t have anything to add to what [she’s] already said about engaging with companies to help implement privacy by design”.
The recent lack of enforcement action by the ICO against the Royal Free NHS Trust regarding its deal with Google Deepmind raised eyebrows in some circles: if the unlawful processing of 1.6 million health records (by their nature sensitive personal data) doesn’t merit formal enforcement, then does anything?
Was that a form of “sandbox regulation”? Presumably not, as it doesn’t appear that the ICO was aware of the arrangement prior to it taking place, but if, as it seems to me, such regulation may involve a light-touch approach where innovation is involved, I really hope that the views and wishes of data subjects are not ignored. If organisations are going to play in the sand with our personal data, we should at the very least know about it.
The views in this post (and indeed all posts on this blog) are my personal ones, and do not represent the views of any organisation I am involved with.