The Department of Commerce ("DOC") worked with the European Commission to develop guidance for U.S. companies to enable compliance with the requirements of the European Union (“EU”)'s Directive on Data Protection (the "Directive"). On May 21, 2000, the EU member states approved the safe harbor Data Privacy Accord (the “Accord”). The Accord is a mechanism which, through an exchange of documents, enables the EU to certify that participating US countries meet EU requirements for adequate privacy protection.
In a press release by the European Parliament on July 5, 2000, the European Parliament adopted a resolution drafted by the Committee on Citizens’ Freedom and Rights, Justice and Home Affairs on the adequacy of the Accord. The report proposed that the Accord include an individual right to appeal privacy violations, compensation for damages, clear guidance for redress, and a review of the system within six (6) months of the Accord’s enactment.
US organizations began signing up to be on a Safe Harbor list on November 1, 2000.
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