How U.S. Businesses Can Prepare for New European Data Privacy Rules

Ever since the European Union approved its Data Protection Directive in 1995, the U.S. and Europe have been at war over data privacy. Now, Europe is working on a new set of data privacy regulations. The process, which began in 2012, has been long and drawn out. The latest hurdle, approval by the European Council was just cleared this week. The stricter rules will present challenges for U.S. businesses wanting to work with customers in Europe. Global Sourcing counsel Steven P. Farmer said that U.S. firms need to plan ahead before doing business in Europe. "You need an executive decision on what standards to apply in Europe - do you want to meet a 'gold star' compliance standard or do you just want to do the minimum that is required to comply with the regulation?" said Farmer. "There can be reputational issues depending on which route you choose." He recommends that U.S. firms develop a roadmap about what activities they are going to conduct in Europe.