E.U.'s Highest Court: U.S.-E.U. Safe Harbor Data Transfer Scheme "Invalid" – Now What?

The European Court of Justice (ECJ) ruled on Tuesday that the "Safe Harbor" data transfer regulatory framework, which had enabled the otherwise prohibited transmission of European Union residents' personal information to the U.S., is invalid. The program enabled those who collect data in the European Union to transmit the data to the United States notwithstanding the E.U. determination that the U.S. lacks "adequate" privacy laws. Companies who have relied upon or who were planning to rely upon the Safe Harbor scheme should assess the alternatives that are available and adjust their practices accordingly.

Differing Privacy Law Approaches

The U.S. has enacted laws to protect individuals' private information in a patchwork, piecemeal manner, with certain federal laws imposing privacy requirements on a sectoral basis in fields such as finance and health care. This approach has left yawning gaps. Much lip service has been paid to the need for a broader and more