The European Union has confirmed that it will not stop data flow to the US until at least the end of the year, even though US privacy laws are less stringent than those in the new EC directive.
Talks are continuing between the two sides, aimed at reaching a settlement that will allow electronic commerce to continue unchecked. The new directive restricts sharing of data on EC citizens with countries with less strict protection rules.
The US is pushing for a 'safe harbour' settlement, which would make US companies immune from prosecution under EU data protection laws, provided they complied with a set of core guidelines. These guidelines are yet to be hammered out though. They are likely to insist that US companies must give notice of data collection and give consumers an opportunity to refuse certain information.
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