Data Protection Bill [HL] Debate
Full Debate: Read Full DebateLord Ashton of Hyde
Main Page: Lord Ashton of Hyde (Non-affiliated - Excepted Hereditary)Department Debates - View all Lord Ashton of Hyde's debates with the Department for Digital, Culture, Media & Sport
(6 years, 11 months ago)
Lords ChamberMy Lords, I turn to the new offence of reidentifying de-identified personal data. As a new clause, with no corresponding parallel in the 1998 Act, it has been a hot topic throughout the passage of the Bill and the Government welcome the insightful debates on it that took place in Committee. Those debates have influenced our thinking on aspects of the clause and I will elaborate on the amendments we have tabled in response to concerns raised by noble Lords.
By way of background, Clause162(3) and (4) provide a number of defences for circumstances where reidentification may be lawful, including where it was necessary for the prevention or detection of crime, to comply with a legal obligation, or was otherwise justified as being in the public interest. Further defences are available where the controller responsible for de-identifying the personal data, or the data subjects themselves, consented to its reidentification.
As noble Lords will recall, concerns were raised in Committee that researchers who acted in good faith to test the robustness of an organisation’s de-identification mechanisms may not be adequately protected by the defences in the current clause. Although we continue to believe that the public interest defence would be broad enough to cover this type of activity, we recognise that the perception of a gap in the law may itself be capable of creating harm. We therefore tabled Amendments 151A, 156A and 161A to fix this. These amendments introduce a new, bespoke defence for those for whom reidentification is a product of their testing of the effectiveness of the de-identification systems used by other controllers.
A number of safeguards are included to prevent abuse. I particularly draw noble Lords’ attention to the requirement to notify either the original controller or the Information Commissioner. In addition, the researcher cannot intend to cause, or threaten to cause, damage or distress to a legal person. That means, for example, that those self-styled researchers who attempt to use their discovery to extort money from either the data controller or the data subjects they have reidentified are not protected by this new defence.
We fully appreciate the importance of the work undertaken by legitimate security researchers. I assured noble Lords in Committee that it was in no way our intention to put a halt on this activity where it is done in good faith, and the amendments I am moving today make good on that commitment. On that basis, I beg to move.
My Lords, I thank the Minister. We on these Benches had considerable activity from the academic community, security researchers and so on. I am delighted that the Minister has reflected those concerns with the new amendments.
My Lords, I echo the noble Lord’s words. We also welcome these amendments. As has been said, this issue was raised by the academic community, whose primary concern was that the way the Bill had originally been phrased would make important security research illegal and weaken data protection for everyone by that process. It would also mean that good and valid research going on in our high-quality institutions might be at risk.
I do not in any sense want to question the amendments’ approach, but I have been in further correspondence with academics who have asked us to make a few points. I am looking for a sense that the issues raised are being dealt with. Either a letter or a confirmation that these will be picked up later in the process of the Bill is all that is necessary.
First, it is fairly common-sense to say that companies probably would not be very happy if a researcher picks up that they are not doing what they say on the tin—in other words, if their claim that their data has been anonymised turns out not to be the case. Therefore, proposed new subsection (2)(b) may well be used against researchers to threaten or shut down their work. The wording refers to “distress” that might be caused, but,
“without intending to cause, or threaten to cause, damage or distress to a person”,
seems a particularly weak formulation. If it is only a question of distress, I could be distressed by something quite different from what might distress the noble Lord, who may be more robust about such matters. I think that is a point to take away.
Secondly, we still do not have, despite the way the Minister introduced the amendment, definitions in the Bill that will work in law. “Re-identification”, which is used in the description and is part of the argument around it, is still not defined. Therefore, in proposed new Clause 161A(3), as mentioned by the noble Lord who introduced the amendment, the person who,
“notified the Commissioner or the controller responsible for de-identifying the personal data about the re-identification”,
has to do this,
“without undue delay, and … where feasible, not later than 72 hours after becoming aware of it”.
That is a very tight timetable. Again, I wonder if there might be a bit more elasticity around that. It does say “where feasible”, but it puts rather tight cordon around that.
We are trying to make it safe for researchers and data scientists to report improperly de-identified data, but in the present arrangements the responsibility for doing all this lies with the researcher. We are asking a researcher to go to court, perhaps, and defend themselves, including arguing that they have satisfied Clause 162(2)(a) and (b) and Clause 162(3)(a), (b) and (c), which is a fairly high burden. All in all, we just wonder whether how this has been framed does the trick satisfactorily. I would be grateful for further correspondence with the Minister on this point.
Finally, there is nothing in this amendment about industry. It may not be necessary but it raises a question that has been picked up by a couple of people who have corresponded with us. The burden, again, is on the researcher. Is there not also a need to try to inculcate a culture of transparency in the anonymisation processes which are being carried out in industry? In other words, if there is a duty on researchers to behave properly and do certain things at a certain time, should there not also be a parallel responsibility, for example, on companies to properly and transparently anonymise the data? If there is no duty for them to do it properly, what is in it for them? It may well be that that is just a natural aspect of the work they are doing, but maybe the Government should reflect on whether they are leaving this a little one-sided. I put that to the Minister and hope to get a response in due course.
I thank the noble Lord, Lord Clement-Jones, for his support on this. I accept that there may be things to look at that the noble Lord, Lord Stevenson, has mentioned. It is better to consider those things properly rather than give an answer off the top of my head at the Dispatch Box. I certainly commit to taking those points back and having a look at them. It may be that, when we correspond, something can take place in another place. In the meantime, I beg to move.
My Lords, I too want to speak to this amendment, to which I have added my name, and I acknowledge and welcome the support of the Information Commissioner on this issue. I support the collective redress of adults but I specifically want to support the noble Lord, Lord Stevenson, on this question of children.
At Second Reading and again in Committee I raised the problem of expecting a data subject who is a child to act on their own behalf. Paragraph (b) of proposed new subsection (4B) stipulates that,
“in the case of a class consisting of or including children under the age of 18, an individual may bring proceedings as a representative of the class whether or not the individual’ s own rights have been infringed".
This is an important point about the right of a child to have an advocate who may be separate from that child and whose own rights have not been abused. Children cannot take on the stress and responsibility of representing themselves and should not be expected to do so, nor should they be expected to police data compliance. Children whose data is processed unlawfully or who suffer a data breach may be unaware that something mischievous, harmful or simply incorrect has been attached to their digital identity. We know that data is not a static or benign thing and that assumptions are made on what is already captured to predict future outcomes. It creates the potential for those assumptions to act as a sort of lead boot to a child’s progress. We have to make sure that children are not left unprotected because they do not have the maturity or circumstances to protect themselves.
As the noble Lord, Lord Stevenson, said, earlier this evening, the age-appropriate design code was formally adopted as part of this Bill. It is an important and welcome step, and I thank the Minister and the new Secretary of State Matt Hancock, whose appointment I warmly welcome, for their contribution to making that happen. Children’s rights have been recognised in the Bill, but rights are not meaningful unless they can be enacted. Children make up nearly one-third of all users worldwide, but rarely do they or the vast majority of their parents have the skills necessary to access data protection.
The amendment would ensure that data controllers worked to a higher standard of data security when dealing with children’s data in the first place. Rather than feeling that the risk of a child bringing a complaint was vanishingly low, they would know that those of us who advocate for and protect the rights of children were able to make sure that their data was treated with the care, security and respect that we all believe it deserves.
My Lords, I am very grateful to noble Lords for their comments. Although I have to say at the outset that we have some reservations about these amendments, I think we might be able to find a way forward this evening. I have listened to the noble Lords, Lord Stevenson and Lord Clement-Jones, and taken their remarks on board, but I have especially listened to the noble Baroness, Lady Kidron, who spoke about children. We have some experience of her input in this Bill. I obviously take a lot of notice of what the noble Lords, Lord Stevenson and Lord Clement-Jones, say but, as you know, familiarity and all that, so I have certainly listened especially to the noble Baroness, Lady Kidron.
The Government are sympathetic to the idea of facilitating greater private enforcement, but we continue to believe that the Bill as drafted provides significant and sufficient recourse for data subjects. In our view, there is no need to invoke article 80(2) of the GDPR, with all the risks and potential pitfalls that that entails. To recap, the GDPR provides for, and the Bill allows, data subjects to mandate a suitable non-profit organisation to represent their interests following a purported infringement. The power will, in other words, be in their hands. They will have control over which organisation is best placed to represent their interests, what action to take and what remedy to seek. The GDPR also places robust obligations on the data controller to notify the data subject if there has been a breach which is likely to result in a high risk to the data subject’s rights and freedoms. This is almost unprecedented and quite different from, say, consumer law where compulsory notification of customers is rarely proportionate or achievable.
These are very significant developments from the 1998 Act and augment a rapidly growing list of enforcement options available to data subjects. That list already includes existing provisions for collective redress, such as group litigation orders, which were used so effectively in the recent Morrisons data breach case, and the ability for individuals and organisations to independently complain to the Information Commissioner where they have concerns about how personal data is being processed.
What these initiatives have in common is that they, like the GDPR as a whole, seek to empower data subjects and ensure they receive the information they need to enforce their own data rights. By comparison, Amendments 175 and 175A would go much further. I stress that, as I have already said, we are not against greater private enforcement, and I have borne in mind the points the noble Baroness made about children. We also have reservations about the drafting and purpose of these amendments, all of which I could of course go through at length, if the House wishes, but in view of what I am about to say, I hope that will not be necessary.
Since Committee, the Government have reflected on the principles at stake here and agree it would be reasonable for a review to be undertaken, two years after Royal Assent, of the effectiveness of Clause 173 as it is currently drafted. The Government are fully prepared to look again at the issue of article 80(2) in the context of that review. We are serious about this. We will therefore amend the Bill in the other place to provide for such a review and to provide the power for the Government to implement its conclusions.
In view of that, I would be very grateful if the noble Lord will withdraw his amendment this evening and other noble Lords do not press theirs.
Before the Minister sits down, can I get absolute reassurance from him that this is not pushing it into the future, where it will languish? Will the Government be looking to this review to actually solve the problem that we have put forward on behalf of children?
It absolutely will not and cannot languish, because we are going to put in the Bill—so on a statutory basis—that this has to be reviewed in two years. It will not languish. As I said, if we were just going to kick it into the long grass, I would not have said what I just said, which everyone can read. We would not have put it in the Bill and made the commitments we have made tonight.
My Lords, I thank the Minister for his response and am only sorry that I, rather than the noble Lord, Lord Stevenson, have the privilege of responding. The Minister came back, I thought, very helpfully. The noble Baroness, Lady Kidron, made a superb case for these rights to be implemented earlier rather than later. If we are creating all those new rights for children under the Bill, as she says, we must have a mechanism to enforce them. I believe the Minister said that the review would be two years after the Bill comes into effect. I hope that that is an absolute—
Let us hope that that is treated as an important timetable. I was interested that the Minister expressed his sympathy—I know that that was genuine—but then went on to talk about risks and pitfalls, and very significant developments, which all sounded a bit timid. I understand that we are in relatively novel territory, but it sounded rather timid in the circumstances, especially where the rights of children are concerned.
One point the Minister did come back on was group litigation orders. Class actions are very different from the kinds of representative action that we are talking about under these amendments. For example, they would be anonymous and the consent of the data subject would not have had to be acquired, unlike with a class action. They are very different, which is worth pointing out. There are some egregious issues in terms of the use of people’s data—the Equifax case, Uber, and so on. We need to remind ourselves that these are really important data breaches and there need to be remedies available. We, on this side of the House, and those on the Benches of the noble Baroness, Lady Kidron, will be vigilant on this aspect.
The one area of clarification that I did not receive from the Minister was whether this would apply to processing of personal data that was not under the GDPR. Will it be under the applied GDPR, and would that apply?
I think it applies to the whole thing, but if I am wrong, I will certainly write to everyone who is here.
The noble Lord may be right but, of course, it is equally very rare that we turn down an affirmative order.
My Lords, I am grateful to all those who have participated. I take on board what the noble Lord, Lord Clement-Jones, said about our brief debate on the final day in Committee, so we can do a bit tonight. I hope that by the end I will be able to convince noble Lords that this is not quite as sinister as has been made out. I am going to duck, if I may, the argument about the affirmative procedure and whether it should be amendable, particularly given other Bills that are coming before this House soon. After all, I was only reappointed yesterday.
It is helpful to have this opportunity to further set out the purpose and operation of Clauses 175 to 178 and, in doing so, explain why the amendments in this group are unnecessary—except, of course, the government amendments. As noble Lords will now be aware, the Bill creates a comprehensive and modern scheme for data protection in the UK. No one is above the law, including the Government. That partly answers the point made by the noble Lord, Lord Clement-Jones. The Secretary of State cannot do whatever she or he wants because they are subject to the GDPR and the Bill, like everyone else. When I go further and explain the relationship between this framework and the ICO’s guidance, if it is issued, I hope that will further reassure noble Lords.
While we are on this subject, the reason the Bill uses the term “framework” is that it uses the term “code of practice” to refer to a number of documents produced by the Information Commissioner. As this document will be produced by the Government, we felt that it would be clearer not to use that term in this case. It is purely a question of naming conventions—nothing significant at all.
Inherent in the execution of the Government’s functions is a requirement to process significant volumes of personal data, whether in issuing a passport or providing information on vulnerable persons to the social services departments of local authorities. The Government recognise the strong public interest in understanding better how they process that data. The framework is therefore intended to set out the principles and processes that the Government must have regard to when processing personal data. Government departments will be required to have regard to the framework when processing personal data. This is not a novel concept. Across the country, organisations and businesses produce guidance on data processing that addresses the specific circumstances relevant to them or the sector in which they operate. This sector, or organisation-specific guidance, coexists with the overarching guidance provided by the Information Commissioner.
This framework adopts a similar approach; it is the Government producing guidance on their own processing of data. The Information Commissioner was consulted during the preparation of these clauses and will be consulted during the preparation of the framework itself to ensure that the framework complements the commissioner’s high-level national guidance when setting out more detailed provision for government.
My Lords, the Minister said that the Information Commissioner was consulted, but what was her view? Can the Minister put on record what the Information Commissioner’s view about the final architecture was? She has made it fairly clear to us that this is not satisfactory, as far as she is concerned.
When I said that she was consulted, I said what I meant. This is one of the few areas in the whole Bill, I think, where we do not have complete agreement with the Information Commissioner. I think that she is worried about complications regarding independence and the extent of her authority in this. I am not pretending that she is completely happy with this, but I hope that I will address how the two interlink and we can come back to this if the noble Lord wants. I acknowledge his point that she is not completely happy with this but, as I said before, it is one of the few areas in the whole Bill where that is the case. Certainly, we have a very good relationship with the Information Commissioner, as evidenced earlier this evening by her agreement on pay and flexibility. Importantly though, whatever she thinks of it, she will be consulted during the preparation of the framework itself to ensure that it complements the commissioner’s high-level national guidance when setting out more detailed provision for the Government.
As I explained in Committee, the Government’s view is that the framework will serve to further improve the transparency and clarity of existing government data processing. The Government can and should lead by example on data protection. Amendment 176 is designed to address concerns about the potential for confusion if the framework is produced by the Government, I respectfully suggest that these concerns are misplaced. The Secretary of State’s framework will set out principles for the specific context of data processing by government. It will, as I have set out, complement rather than supplant the commissioner’s statutory codes of practice and guidance, which will, by necessity, be high level and general as they will apply to any number of sectors and organisations.
Requiring the commissioner to dedicate time and resources to producing guidance specifically for the Government, as the noble Lord’s amendment would require, would hardly seem to the best use of her resources. Just like a sectoral representative body, it is the Government who have the experience and knowledge to devise a framework that speaks to their own context in more specific terms.
I am sorry to keep interrupting the Minister, but is he therefore saying that the frameworks cover government and that the ICO’s codes of practice cover government as well?
Absolutely. The framework exists like other sectoral guidance that is produced, under the overarching guidance produced by the Information Commissioner. In a minute I will provide further reassurance on how the two interlink.
As I have already set out, the Government will consult the commissioner in preparing the framework. Importantly, she is free to disregard the Government’s framework wherever she considers it irrelevant or to disagree with its contents.
I know that we should not be intervening like this on Report, but the phrasing that the Minister just used is of interest—to the noble Lord, Lord Clement-Jones, as well, I think. What does “irrelevant” mean? Can the Minister unpick that a little? Either the Secretary of State has the power to do something, or not. If that power is conditional on the ICO having given broad agreement to it, under what conditions can the ICO intervene? Can it be because the commissioner regards it as irrelevant? What does that mean?
I think it means that, if the Information Commissioner were considering the case of a data breach committed by the Government, she would normally take the framework into account, as she would take into account the guidance that other sectors produce. If, however, there were circumstances in which she did not consider that it was relevant for her investigation into whether the law had been broken, given that she is the enforcer of the law, she would be free to disregard it. The words “must take into account” mean that she is not bound by the provision but has to take it into account. She is, after all, the regulator who sits above all data processors.
I reiterate that the guidance will provide reassurance to data subjects about the approach the Government take to processing data and the procedures that they follow when doing so. It will help further strengthen the Government’s compliance with the principles of the GDPR.
Amendments 177 and 178, in the name of the noble Lord, Lord Clement-Jones, concern the process for making the guidance. The guidance may be revised if Parliament does not approve it or if it needs adjustment to be compatible with international obligations. It would be odd and irresponsible to abandon the problem these clauses are trying to resolve if Parliament does not approve the guidance. A revised version should be prepared. Similarly, data protection rules are often international in nature and indeed this Bill is based on three international instruments, so revising the guidance to maintain compatibility must be the sensible approach.
Amendments 179 and 180 seek to limit the effect of the guidance. Persons must have regard to the guidance but there may be good reasons why processing data in a particular set of circumstances can lawfully be conducted in a manner outside the guidance. As long as regard has been had to the guidance but good reasons for departing from it or for its non-applicability have been established, it is perfectly proper and within the norm of usual public law principles to do so. Clause 178 ensures that those principles are enforced.
In our view, the existence of a framework in no way impinges upon the commissioner’s independence. Clause 178(5) simply requires the commissioner to take a provision in the Government’s framework into account if it appears to her to be relevant to the matter in hand. For example, if the commissioner were to investigate a data breach by a government department, she may consider it relevant to consider whether or not that department had applied the principles set out in the framework. It is standard practice for the Information Commissioner to take into account relevant sectoral guidance when examining issues related to the processing of personal data by a particular sector. Clause 178(5) simply reflects that practice. Furthermore, nothing in Clause 178(5) constrains the Information Commissioner in any way. She is free to disregard the Government’s framework wherever she considers it irrelevant or to disagree with its contents, as I said.
Government Amendments 184A and 184B are technical amendments and are similarly designed to assist with the Government’s compliance with the GDPR. Most bodies falling within the Bill’s definition of government departments are Crown bodies. Such bodies cannot contract with each other as the Crown cannot contract with itself. This constitutional quirk means that the usual GDPR requirement that controllers and processors must have a contractual relationship is impossible to satisfy where one department is processing on behalf of another. These amendments resolve this situation by allowing departments to enter into a memorandum of understanding between each other instead and remain GDPR-compliant.
On the basis of my comments, I hope that the noble Lord will feel able to withdraw his amendment and support the government amendments in this group.
I thank the Minister very much indeed for his very full response. I will read it carefully in Hansard but at this stage, although it is a rather complicated issue, I understand where he is coming from and I think we can probably let it rest at this point. If there is anything else, I will write to him rather than prolong the discussion today.
I opined that negative resolutions were rarely voted down and cited 1940 as the last occasion that that happened, but I was wrong. Some 40 years ago on 24 October 1979, the Paraffin (Maximum Retail Prices) (Revocation) Order 1979 was defeated late at night during what appears to have been rather unsavoury activity by members of the Labour Party who hid in cupboards and things and then jumped out. Mr Hamish Gray, whom Members may recall, was unable to sustain the standing order and it had to be brought back later on—it was all very complicated and Hansard is wonderful about it. I beg leave to withdraw the amendment.
My Lords, we are at the last knockings on most of the Bill. It is rather ironic that one of the most important concepts that we need to establish is a new data ethics body—a new stewardship body—called for by the Government in their manifesto, by the Royal Society, by the British Academy and by many others. Many of those who gave evidence to our Select Committee want to see an overarching body of the kind that is set out, and with a code of ethics to go with it. We all heard what the Minister had to say last time; we hope that he can perhaps give us more of an update on the work being carried out in this area.
This should not be and I do not think it will be a matter of party contention; I think there will be a great deal of consensus on the need to have this kind of body, not just for the narrow field of data protection and the use of data but generally, for the wider application in the whole field, whether it is the internet of things or artificial intelligence, and so on. There is therefore a desire to see progress in fairly short order in this kind of area. One of the reasons for that is precisely because of the power of the tech majors. We want to see a much more muscular approach to the use of data by those tech majors. It is coming down the track in all sorts of different varieties. We have seen it in debates in this House; no doubt there will be a discussion tomorrow about social media platforms and their use of news and content and so on. This is therefore a live issue, and I very much hope that the Minister will be able to tell us that the new Secretary of State is dynamically taking this forward as one of the top items on his agenda.
My Lords, I can certainly confirm that the new Secretary of State is dynamic. In this group we are in danger of violently agreeing with each other. There is a definite consensus on the need for this; whether there will be consensus on the results is another matter. I agree with the analysis given by the noble Lord, Lord Stevenson, that the trouble is that to get this into the Bill, we have to concentrate on data. As the noble Lord, Lord Clement-Jones, outlined, many other things need to be included in this grouping, not least artificial intelligence.
I will briefly outline what we would like to do. For the record, we understand that the use of data and the data-enabled technologies is transforming our society at unprecedented speed. We should expect artificial intelligence and machine learning to inform ever more aspects of our life in increasingly important ways. These new advances have the potential to deliver enormous benefits to society and the economy but, as we are made aware on a daily basis—like the noble Lord, Lord Clement-Jones, I am sure that this will be raised tomorrow in the debate that we are all looking forward to on social media—they are also raising a host of new and profoundly important challenges that we need to consider. One of those challenges, and the focus of this Bill, is protecting people’s personal data—ensuring that it is collected, retained and used appropriately. However, the other challenges and opportunities raised by these technologies go far beyond that, and there are many examples that I could give.
Therefore, in the Autumn Budget the Government announced their intention to create a centre for data ethics and innovation to maximise the benefits of AI and data technologies to society and the economy, and to help identify and address the ethical challenges that they pose. The centre will advise the Government and regulators on how they can strengthen and improve the way that data and artificial intelligence are governed. It will also support the effective, innovative and ethical use of data and artificial intelligence so that we maximise the positive impact that these technologies can have on our economy and society.
We are in the process of working up the centre’s terms of reference in more detail and will consult on this soon. The issues it will consider are pressing, and we intend to set it up in an interim form as soon as possible, in parallel to this consultation. However, I fully share the noble Lord’s view that the centre, whatever its precise form, should be placed on a statutory footing, and I can commit that we will bring forward appropriate legislation to do so at the earliest opportunity. I accept the reasoning from the noble Lord, Lord Stevenson, on why this is not the appropriate place due to the limitations of this Bill, and I therefore hope that he will be able to withdraw his amendment.
I am very grateful to the Minister for that response. That is probably the right way forward, and I beg leave to withdraw the amendment.
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