Is it possible that by collecting and using travellers’ data you may be breaking the law? Our resident expert, Andreas Wellauer, delves into the issue.

In some countries, the transfer of any data must have the consent of the person who owns it. In others, the data is NOT allowed to leave the country at all.

Our ability to access and use data is huge. Sources include human resources, PNR, credit card data, frequent flyer details, incentive programme data and so on. We warehouse and mine this data for market share.

But while this is normal business practice to many of us, many countries have strengthened their data privacy and protection laws over the past years. The events of 9-11 have drastically changed the rules and distributing data, however well intended, can be a serious crime.

Each area – collecting, transferring, sharing and storing data – has specific regulations. In some countries, the transfer of any data must have the consent of the person who owns it. In others, the data is NOT allowed to leave the country at all.

There are three specific issues for consideration – legal, ethical and logistical.

Legal

First you have to understand what kind of information you are allowed to collect in another country. For example, you are in country A and want to collect data from country B. Even though the data may come from within your own company, it is still subject to the national law on data collection of country B.

Furthermore, if you decide to use country B data in country C, you are in fact exporting data and need to make sure that this is legal in the country of origin, ie, country B.

If you consider releasing data to another party, you will have to deal with another set of problems. What will they do with the data, how will they use it and will the data still be safe?

Ethical

While you may have covered yourself legally, you must make sure the data usage may not cause ethical problems. For example, some governments may collect and store all data that is provided and may use the information later against individuals. This information can include spending habits in other countries, meal preferences with an airline, etc. You do not want to become a data collection point for third parties.

Logistical

For some years now, the US airline industry has directed its customers to transfer data to a third-party data consolidator. You have to understand that you are thereby voluntarily transmitting data. The third party has a primary contract with the airline and once transmitted you may have limited control over the later use or distribution of this data.

While these practices are not yet prevalent in Asia, you must be careful when signing any contract and ensure potential data sharing is regulated. As always get full backing from your legal department to protect yourself.