Publications and Videos
2001-2002 Annual Report_2
|
Introduction Privacy Commissioner's Overview
I was honoured to be appointed Privacy Commissioner for Personal Data in November 2001 and relish the prospect of protecting and advancing personal data privacy rights both in Hong Kong and internationally. I have been most fortunate in that my predecessor pioneered the cause of personal data privacy in Hong Kong and, in the process, laid a very solid foundation for me to inherit. I think it is fair to say that the citizens of Hong Kong not only enjoy some of the most comprehensive personal data privacy rights of any jurisdiction in the world but that they have a clear awareness of those rights. This suggests to me that the Personal Data (Privacy) Ordinance, and the sustained work of the Privacy Commissioner's Office ("the PCPD"), have created a genuine value for personal data privacy. More importantly, that value is widely acknowledged by society. This is the PCPD's sixth annual report and covers the period from 1st April 2001 to 31st March 2002. Over the course of the year the PCPD has had to deal with growing volumes of work, notably in the number of enquiries received and complaints processed. As at 31st March 2002 we have dealt with in excess of 93,000 enquiries and nearly 3000 complaints in the six years that the PCPD has been in operation. These statistics tell me at least two things. First, the PCPD is not short of business! Secondly, it is very evident that the citizens of Hong Kong are increasingly willing to exercise their personal data privacy rights. This is gratifying in one sense because it indicates that privacy is now an established human right and, as a lawyer, I would like to see that right freely exercised and impartially enforced in accordance with the law. In another sense though the complaint figures demonstrate that we need to sustain our efforts and motivate data users to become compliant with the law. This is particularly so in the private sector and among small and medium sized enterprises. My personal view would be that respect for privacy, both in a generic sense and the more specific sense of personal data privacy, is an index of a postmodern and sophisticated society. I think that one measure of my tenure will be the extent to which the PCPD works successfully towards a longer term vision which is that of instilling respect for the privacy of another in a more generic sense. That is, through our strategies and initiatives in the arena of personal data privacy we should be able to leverage our gains and advance privacy per se. I also want very much to be able to use this vision to encourage data users, in either the private or public sector, to embrace privacy as part of their core culture. In doing so I am conscious of the fact that the PCPD needs to dispel any mis-conception that our Ordinance is in some way a bureaucratic imposition foisted upon data users. Quite the contrary, particularly in the private sector, there are considerable benefits from becoming a privacy-compliant organization. It is my firm belief that in a highly competitive economy, such as Hong Kong's, respect for personal data privacy can bring competitive advantage to business organizations. Good personal data management practices are worthy of serious consideration because they offer the opportunity to differentiate the product or service in a manner that is valued by the consumer, and that can only be good for business. Indeed, the significance of this argument has already been realized in the USA where larger organizations have taken to appointing a Chief Privacy Officer reporting to the CEO. That may be a little premature for Hong Kong but it is a development that should be contemplated because it signifies that responsibility and accountability have been attached to the management of personal data. This is symptomatic of exercising corporate control, which is part of a larger concept of good corporate governance. If I may shift the focus of this appeal to the E-Business marketplace there is considerable evidence, including findings from the PCPD's annual data subjects survey, that it is the absence of controls that explains why consumer expenditure online remains such a very small percentage of total consumer expenditure. Survey after survey reveals that consumers in Hong Kong want to control their personal data just as they want to control their personal expenditure. The desire for control is amplified in the online world where transactions are invisible. It is this invisibility that heightens the fears of prospective consumers in terms of unauthorized use of their personal data. Personal
data privacy, hacking and online fraud concerns
add up to a lot of concern, and those collective
concerns act as an impediment to the expansion
of E-Business.
It is also apparent that
consumers want E-Vendors to exercise stringent
controls on the use of personal data. Again,
rather unfortunately, the message that all
too frequently comes across is that those
in the IT world are more predisposed towards
using technology to track and profile consumers
than they are to use technology to protect
the identity of the consumer. As a consequence
it is not surprising that consumer anxieties
continue to persist. One way of allaying
those fears might be for .hk vendors to
take the initiative by drafting and disseminating
E-Vendor Codes of Conduct on the protection
of personal data privacy rights. Such codes
could amount to voluntary self-regulation
and would need to be policed by signatories
to the Code. I
am pleased to report that during the course
of the year a major PCPD project came to
fruition. In April 2001 the Code of Practice
on Human Resource Management came into effect.
This initiative offers a good illustration
of the way in which the PCPD works closely
with the business community. The Code was
a response to a call from HRM professionals
to assist them in applying the provisions
of the PD(P)O to the management of personal
data in the context of recruitment, employment
and severance. It was gratifying to be able
to assist managers in translating the technical
language of the Ordinance into pragmatic
guidelines. It was even more gratifying
for the PCPD to win the Outstanding Contribution
to Human Resources at the Asian HR Awards
ceremony in June 2001. Over
the course of the year we have become involved
in two major projects: The Code of Practice
on Monitoring and Personal Data Privacy
at Work, and revisions to the Code of Practice
on Consumer Credit Data. The
first of these, the Code of Practice on
Monitoring and Personal Data Privacy at
Work, was a response to a recommendation
made by the Law Reform Commission in a 1999
consultation paper titled Civil Liability
for Invasion of Privacy. That recommendation
suggested that the PCPD promulgate a code
"for the practical guidance of employers,
employees and the general public."
After considering the recommendations of
consultants engaged to report on the experience
of other jurisdictions the PCPD completed
the draft Code in March for release as a
consultation paper.
The project was taxing
in that it presented the PCPD with the challenge
of having to accommodate multiple interests.
The first of these pertain to the rights
of managers to manage the assets and resources
of the business. The second set of interests
relates to the rights of employees to be
treated with dignity and have their personal
data privacy rights respected in the workplace.
In trying to strike an equitable balance
between these rights the draft code was
framed around two important principles,
those of transparency and proportionality.
In my view this project is representative
of the type of challenge that is a recurrent
feature of our work namely, reconciling
distinct sets of interests without compromising
them. The PCPD's responsibilities are well
defined in the Personal Data (Privacy) Ordinance
and it is our duty to discharge those responsibilities
with a high degree of professionalism. We
would also regard ourselves as being a leading
advocate of privacy rights in the HKSAR.
However, having said that, we are conscious
of the fact that we need to temper any 'purist'
position on privacy-related matters by endeavouring
to accommodate other interests. Only by
so doing will we be able to generate good
policies: by definition good policies are
policies that work. Arriving at pragmatic
solutions therefore necessitates consensus
and it is our aim to utilize this approach
to decision making when formulating policy.
In effect this means that in any absolute
sense privacy rights should not assume supremacy
over other rights, for example, the public
interest. This
brings me to an illustration of this point
and the modus operandi that we have chosen
to adopt in relation to a second major project
the PCPD have become involved with. In
the latter part of 2001 the financial services
sector began to face problems that grew
more severe as each month passed. The problems
are complex in their origin although economic
adversity is the commonly ascribed cause.
The problem was the level of default on
outstanding credit card and loan balances
and the burgeoning numbers of those filing
for bankruptcy. After extensive discussions
between government departments/agencies
and representatives of the financial sector
the proposal put forward was that there
should be a revision of the current provisions
of the Code of Practice on Consumer Credit
Data. The proposal currently under consideration
is that there should be some relaxation
of the sharing of positive credit data by
the banks to a credit reference agency ("CAR")
for the purposes of credit reporting and
credit scoring.
The collection of personal data is a necessary
fact of modern life; an inextricable aspect
of a globalised society, and the PCPD freely
acknowledges this. The proposal put forward
involves sensitive privacy issues although
it should be said that positive credit data
is shared in other jurisdictions such as
the USA and UK. The evidence of those jurisdictions
is that where positive credit data is shared
between a bank and the CRA there are demonstrated
benefits for the borrower with a good record
of credit worthiness. These benefits range
from exclusive access to new products and
services and tiered pricing on interest
charges. The challenge therefore is to find
a solution that will adequately safeguard
privacy interests, assist financial institutions,
and in so doing best serve the public interest
and Hong Kong's economic recovery. In
looking to the future I believe that the
PCPD will likely confront complex issues
e.g. public surveillance cameras, smart
cards, biometrics and centralized medical
records databases, which will demand solutions
of the nature I have described. I also believe
that at some stage in the relatively near
future Hong Kong will have to give serious
thought as to how it is going to manage
privacy and freedom of information issues.
In some jurisdictions Commissioners have
already been appointed that wear both hats,
that of Privacy Commissioner and Information
Commissioner. To some this may seem a conflict
of interests but it may well signal a redefinition
of privacy in the broader context of freedom
of expression and freedom of information.
I think that I would best describe the next
five years as marking a developmental phase
in the evolution of the PCPD. This may necessitate
considering new options such as broadening
the remit of the Personal Data (Privacy)
Ordinance to accommodate privacy issues
not currently addressed by the provisions.
Any such review of the fundamental role
and function of the PCPD would have to be
well grounded. However, it is apparent that
there is something of a frustrated demand
in that certain privacy-related issues are
not currently being addressed by any government
department or statutory agency. This means
that the only options open to aggrieved
individuals are to tolerate invasions of
their privacy or to seek redress by taking
civil action. Either option seems a less
than satisfactory state of affairs.
Alternatively, the role of the PCPD may have
to be redefined to accommodate an information
portfolio. This combination of functions
seems to be an emergent trend in Europe.
We will have to wait and see how that trend
develops and what the implications are for
Hong Kong. Certainly,
as the trans-border flow of personal data
increases with the resurgence of world economies
Hong Kong will have to ensure that privacy
interests are adequately protected. This
means that Section 33 of the Ordinance,
which is the only section that has yet to
come into effect, will have to be revisited.
Section 33 deals with trans-border data
flows that are subject to strict European
Union regulations. In essence those regulations
stipulate that to trade with any European
Union member State a non-member State will
have to apply for 'adequacy' of its privacy
legislation vis-a-vis EU directives. Alternatively,
a non-member State will have to have in
place some sort of privacy regimen that
in principle meets EU directives on the
protection of personal data. Non-compliance
on the part of a non-member State to meet
the EU's 'adequacy' requirements could mean
the imposition of sanctions. Those sanctions
may impede trade between the EU and non-member
States where that trade necessitates the
transfer of personal data across borders.
Before
concluding I would like to re-emphasize
a point made earlier. It is abundantly clear
that the citizens of Hong Kong value their
privacy rights. Not even the events of the
11 September in New York and Washington
have diminished the determination to preserve
and protect this aspect of human rights
in Hong Kong. My interpretation of that
position is that privacy rights are robust
and that there has been a measured response
to sustaining that resilience. This is both
laudable and a credit to the community and
the Administration in that they have resisted
any knee jerk reaction.
In conclusion there are many weighty issues
to be resolved in the medium term if Hong
Kong is to retain its worldwide reputation
as a place where personal data privacy rights
are protected and respected. Indeed, there
is a need for constant vigilance because
privacy is a moving target rather than a
finite entity. However, I am fortunate in
being able to lead a dedicated team as we
embark upon the next phase of the PCPD's
development. I believe we have the collective
experience and commitment to ensure that
privacy rights in Hong Kong continue to
be upheld and command the respect of other
jurisdictions around the world that we have
good working relationships with. |
End of Page
[Annual Report] [Code of Practice/ Guideline & Explanatory Booklet] [Consultation Document/ Report] [Newsletter] [Guidance Note & Fact Sheet] [Leaflet & Form] [Opinion Survey] [Others] [Investigation Report / Inspection Report] [Information Book]
[About PCPD] [The
Ordinance] [PCPD Activities]
[Information Centre] [Privacy
Zone for Youngsters (Games)]
[Publications & Videos]
[Enquiries & Complaints]
[Case Notes] [Contact
Us] [Search] [Site
Directory] [Graphical Version]
[Chinese Version]
Notice/Copyright 2001 Office of the Privacy Commissioner for Personal Data, Hong Kong. All rights reserved. Disclaimer