Data Trusts Initiative response to the consultation on the draft Data Governance Act
Abstract
Achieving the promise of the digital economy will require robust data governance frameworks that allow data sharing – helping develop new data-enabled products and services – while protecting individual rights and freedoms. In pursuit of this aim, the Data Trusts Initiative welcomes the opportunity to response to this consultation on the draft Data Governance Act.
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A variety of legal tools to support data sharing already exist, based on contractual, cooperative or corporate structures.
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Data Trusts differ from the above in that they rely on the legal framework provided by trust law. A data trust is a mechanism for individuals to take the data rights that are set out in law and pool these into an organisation – a trust – in which trustees make decisions about data use on their behalf. While trust law was developed in common law jurisdictions, its principles and practices have equivalents across jurisdictions that could be used as the basis for data trusts.
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Data trusts offer important lessons for the design of trustworthy data governance institutions, highlighting the type of safeguards that could be used to ensure the safe and effective operation of data intermediaries. For example:
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The fiduciary duties created by trust law require that trustees act with undivided loyalty for the beneficiaries of the trust.
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Courts are able to intervene if a trustee fails in their duties, providing further safeguards.
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Since publication of the draft Act, there have been questions about the way in which Recital 24 might affect the operation of data intermediaries such as data trusts – in particular, concerns about whether it would be possible to delegate rights under the GDPR to a data trustee. In this respect, it is important to note that the creation of a data trust need not require the transfer of rights. Data trusts can be designed in ways that ensure individuals retain the ability to remove their rights from trusts, with safeguards that ensure the trust operates in ways that support enfranchisement.
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A more complete exploration of the issues about delegation and transfer of rights can be found at: https://datatrusts.uk/blogs/understanding-the-datagovernance-act-in-conversation-with-sylvie-delacroix-ben-mcfarlane-andpaul-nemitz