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In 1980, the OECD issued recommendations for protection of personal data in the form of eight principles. These were non-binding and in 1995, the European Union (EU) enacted a more binding form of governance, i.e. legislation, to protect personal data privacy in the form of the Data Protection Directive.
The Working Party negotiated with U.S. representatives about the protection of personal data, the Safe Harbor Principles were the result. Notwithstanding that approval, the self-assessment approach of the Safe Harbor remains controversial with a number of European privacy regulators and commentators. [36]
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The FTC has approved a number of US providers to certify compliance with the US-EU Safe Harbor. Since 2010 Safe Harbor is criticised especially by German publicly appointed privacy protectors because the FTC's will to assert the defined rules hadn't been implemented in a proper even after revealing disharmonies. [34]
In order to bridge these different privacy approaches and provide a streamlined means for U.S. organizations to comply with the Directive, the U.S. Department of Commerce in consultation with the European Commission developed a "safe harbor" framework. In order for the framework to be enforced, companies must publicly publish a privacy policy. [49]
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The Data Protection Directive was an important component of EU privacy and human rights law. The principles set out in the Data Protection Directive were aimed at the protection of fundamental rights and freedoms in the processing of personal data. [1]
In general, there are seven major principles which the organization has developed. They are stated in the following paragraphs: [16] Notice – Individuals must be informed that their data is being collected and how it will be used.