Hellenic Data Protection Authority’s Take on Law 4624/2019

Under the threat of hefty financial sanctions, Greece enacted hastily Law 4624/2019 (“Greek GDPR Law”) last summer, in order to align the domestic data protection framework with the GDPR. The Greek GDPR Law also provided for specific rules on certain topics based on the GDPR’s broad opening clauses, permitting EU member states such as Greece to enact national legislation.

Following a period of uncertainty, the Hellenic Data Protection Authority (“HDPA”) published Opinion 1/2020, whereby they reviewed certain key or contested aspects of the Greek GDPR Law and provided much needed clarity on their compatibility with the Regulation.

In fact, by reiterating Commission’s guidance on the direct application of GDPR dated 24.01.2018, the HDPA stressed that when adapting their national legislation, Member States have to take into account the fact that any national measures which may create an obstacle to the direct applicability of GDPR and this way jeopardise its simultaneous and uniform application throughout EU are contrary to Union Law.

Repeating the text of regulations in national law, opined the HDPA, is also prohibited, unless such repetitions are strictly necessary for the sake of coherence and in order to make national laws comprehensible to those to whom they apply. In fact, reproducing the text of GDPR mot-à-mot in national specification law should be exceptional and justified, and cannot be used to add additional conditions or interpretations to the text of the regulation. This was not the case, however, with Greek GDPR Law, where several GDPR provisions were repeated verbatim and exceptions were introduced without any particular justification.

More particularly, HDPA pointed out that the interpretation of the Regulation should be left to the European courts (meaning the national courts and ultimately the European Court of Justice) and not to the Member States’ legislators. The national legislator can therefore neither copy the GDPR text when this is not necessary in the light of the criteria provided by the case law, nor interpret it or add additional conditions to the rules directly applicable under GDPR, said the Athority. If they did so, commercial entities throughout the Union would again be faced with fragmentation and would not know which rules they have to obey.

In view of the above, the HDPA noted that they shall not be applying Greek GDRP Law provisions, which: (a) are deemed not in line with GDPR, and/or (b) are not based on opening clauses, which make it possible for Member States to lay down specific national arrangements.

As regards personal data of employees, in particular, the HDPA clarified that the national legislator is not allowed to introduce new grounds for lawful processing other than those already set out in Art. 6 GDPR. In fact, processing under the GDPR framework can be lawful only on the basis of one of six specified conditions set out in Article 6(1)(a) to (f). Identifying the appropriate legal basis is of essential importance and controllers must take into account the impact on data subjects’ rights when identifying the appropriate lawful basis so as to fully respect the principle of fairness.

In this context, the Authority stressed that Art. 6 par. 1 (b) GDPR, which has been chosen by Greek legislator as the main processing legal ground, may sometimes be actually unfit in the employment environemnt. In fact, activities such as processing of biometric data, geolocation, monitoring of electronic media, whistleblowing policies ect. should be based on Art. 6 par. 1 (e) GDPR (processing necessary for the performance of a task carried out in the public interest or in the exercise of official authority vested in the controller) or Art. 6 par. 1 (f) (processing necessary for the purposes of a legitimate interest) instead. This way, employees are able to challenge separate processing activities and perform their rights under GDPR, without the terms of their employment contract being challenged.

The matters handled with Opinion 1/2020 were not exhaustive and that is why HDPA explicitly reserved judgment on the compatibility of all other Greek GDPR Law provisions, which have not yet come under the spotlight.

As the case may be, it remains to be seen how Greek GDPR Law provisions shall be interpreted by Greek courts, once challenged by stakeholders, who are all those affected by the new rules (the business community and other organisations processing data, the public sector and citizens). The dust has not settlled yet, the winds of data regulation keep blowing strongly.

Air (Hera orders Aeolus to release the winds) (Aeneid I) by Charles Dupuis (1718)

A New Deal for Consumers

On 8 November 2019, the European Parliament and the Council adopted a directive on the better enforcement and modernisation of EU consumer protection rules. The directive is a part of the so-called “New Deal for Consumers” legislative package proposed by the European Commission in April last year. The directive, which the Member States will have 24 months to implement into their national legislation, is bound to bring about many significant changes, especially for businesses trading online. The most notable updates are briefly set out below.

Online Marketplaces

In today’s online intermediation services (marketplaces), the trading coordinates of the actual seller is not always clear to the end-consumer. This has been identified as an issue, since consumer protection rules do not apply to C2C (consumer to consumer) relationships, and a consumer could unknowingly purchase products from another private individual through a marketplace. The new legislation introduces transparency as regards whom the consumer is entering into an agreement with.

That is, when buying from an online market place, consumers will have to be clearly informed about whether they are buying goods or services from a trader or from a private person, so they know what protection they will benefit from if something goes wrong. Moreover, when searching online, consumers must be clearly informed when a search result is being paid for by a third-party trader or not. They will also be informed about the main parameters determining the ranking of search results and who they can turn to when something goes wrong.

Personalised Pricing

Transparency will be further required with respect to personalised pricing. The new legislation mandates that consumers be clearly informed when the price presented to them is based on personalisation on the basis of automated decision-making. There should be noted, here, that GDPR restricts the use of automated decision-making, which may also impact the use of personalised pricing.

Consumer Protection for “Free” Services

There is no denying the fact that data may often replace monetary payment when using online services such as social media, cloud services, and email services. To bolster consumer protection for such “free” services, the directive now requires that the fourteen (14) day withdrawal right be applicable to digital services will also apply to such “free” services.

Clear Information on Price Reductions

In order to address misleading price information, the new directive dictates that any announcement of a price reduction must indicate the prior price applied by the trader. The prior price means the lowest price applied by the trader during a period of time not shorter than 30 days prior to the application of the price reduction.

New penalties for Violations

Aiming to reimburse consumer protection, the new directive grants the national legislator the right to impose a fine of up to 4% of the trader’s turnover for violations that are widespread and affect consumers in several Member States. This follows the same pattern with personal data protection, where the GDPR introduced similar fines for violations. This pattern has proved successful, as many enterprizes have proceeded with substantial investments to enhance data protection. It is therefore expected that businesses shall now need to turn their attention to furhter enhancing their compliance with consumer protection legislation.

The directive is only one of the two directives making up the New Deal for Consumers legislative package. The second directive on representative actions for the protection of the collective interests of consumers would empower certain qualified entities, such as consumer organisations, to launch representative actions seeking injunctions and collective redress (e.g. compensation, replacement, or repair) on behalf of a group of consumers. This directive is still making its way through the legislative process.