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Discuss the Directive on Data Protection at the EU level.
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Business and Its Environment
Edition: 7th
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At the EU level the Directive on Data Protection took effect in 1998 and required that a person grant explicit permission to a company before it could obtain personal information. In preparing its in-house telephone directory, General Motors had to obtain permission from each of its employees in the European Union to include their work telephone numbers, which were considered personal information. Individuals also have the right to inspect any files maintained and to correct any errors. Furthermore, an individual must be notified in advance if any personal information is to be sold.
The Directive on Data Protection has caused some countries to issue new data protection rules that satisfy the EU requirements for data transfers. In this sense the EU has been driving regulation not just among its member states but also around the world. This has generated concerns in other countries about regulations driven by extreme caution. The United States refused to change its policies in response to the Directive on Data Protection and entered into negotiations with the EU, resulting in a safe harbor agreement.

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