In 2014, the impending and almost certain to be enacted EU Data Privacy Directive, the strictest and the most comprehensive to date, may create an artificial boon for EU companies.  This year, with news that the NSA readily accesses data collected and stored by U.S. cloud companies, such as Google, consumers and companies alike are looking for an option that provides greater security and greater anonymity.  EU companies, and any company collecting information from an individual located in the EU will have to abide by the rigourous articles set out in the Directive.  This just might provide a competitive advantage to EU companies.  Consumers may be more likely to seek out companies that comply with the Directive to purchase goods or services.

One of the primary tenants of the EU Data Privacy Directive is control over personal information.  Every individual will have control over the collection, storage and use of his or her personal data.  Explicit consent from the individual will be required.  And that control will not end with a one-time simple expression of consent.  Individuals, will retain the right to access his or her personal information, make changes, and if so desired, the right to have personal information deleted completely.  Companies that do not comply will face significant penalties.  U.S. companies that currently maintain personal information on EU citizens will have to comply or suffer the risk of steep fines.

There is no comprehensive federal U.S. law governing data privacy, nor is there likely to be one soon.  A number of states are enacting data privacy laws, but the focus has been on protecting information primarily related to health and children.  Implementing a U.S. federal law as comprehensive as the EU Data Privacy Directive seems not just unlikely, but impossible.  Data collection is a huge industry and revenues generated and potential jobs created could assist in the current economic recovery.  Following enactment of the Directive, however, U.S. companies may have to step in line or risk alienating their customers.