News: will companies buy our phone numbers from the Chamber of Commerce?

JUDr. Ondřej Preuss, Ph.D.
10. November 2024
3 minutes of reading
3 minutes of reading
Other legal issues

The proposed amendment to the Electronic Communications Act, which is to provide the Czech Chamber of Commerce with the management of an exclusive list of telephone numbers, raises serious concerns from a legal point of view, particularly in the area of personal data protection and GDPR. The proposal put forward by four MPs of the ruling coalition wants to introduce a centralised database in which businesses would store the telephone contacts of their customers. The database would be managed by the Chamber of Commerce, which would then provide access to the contacts to marketers for a fee. However, there are several key risks from a legal perspective.

The system would violate the basic principles of the GDPR

The proposal to create a centralised database of phone numbers and consents for marketing calls raises questions about GDPR compliance. The GDPR protects the personal data of individuals in the EU and sets strict rules for its processing, including limiting its purpose and minimising the data processed. However, this new database would contain the contact details of millions of individuals, without a clear definition of who will have access to them, how they will be secured and how long they will be stored.

Insufficient protection and regulation

The proposed system lacks transparent rules and boundaries for the use and protection of data. The proposal does not specify what measures will be put in place to protect data from misuse or unauthorised access. This poses a risk in particular for the individuals whose data will be in the database. In addition, the Chamber of Commerce, as the potential administrator of the database, would have a financial incentive to disseminate the data to companies, thus creating a potential conflict of interest.

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“The person conducting marketing is entitled to ask the Chamber of Commerce to verify for specific telephone numbers whether the list of marketing preferences for these numbers includes consent to be contacted for the purpose of marketing for a specific range of goods and services; the cost of this verification is to be paid by the person conducting marketing,” the proposal reads.

Entrepreneurs would be liable for the accuracy of the data

Under the proposal, businesses would presumably have to pay for entering and updating their customers’ consents, which represents an additional cost. In addition, they would be responsible for the accuracy of the data, which would impose an increased administrative and legal burden on them. The proposal also raises questions about whether this system is really necessary and efficient for businesses or whether it is more of a financial benefit for the Chamber of Commerce.

Is it really about simplification?

One of the reasons given by the authors of the proposal is the lack of a system where any individual could simply withdraw or change their consent to be contacted for marketing purposes. The question remains, however, whether this system would really be accessible to all citizens and whether it would really lead to an improvement in the situation. Experience has shown that the management of such consents is often complicated and without clear rules , a single system could become an additional administrative burden rather than a useful privacy tool.

From a legal point of view, therefore, the proposal appears inappropriate and runs counter to the basic principles of data protection. The Chamber of Commerce would become the controller of a sensitive database of personal data, a step which could lead to insufficient protection of citizens’ data and increase the risks of misuse of this data for marketing purposes. If approved, strict oversight of compliance with the GDPR and the establishment of clear rules for data handling would be necessary. Without these, the system may become an easy target for commercial misuse of personal data and breaches of the right to privacy.

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Author of the article

JUDr. Ondřej Preuss, Ph.D.

Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.

Education
  • Law, Ph.D, Pf UK in Prague
  • Law, L’université Nancy-II, Nancy
  • Law, Master’s degree (Mgr.), Pf UK in Prague
  • International Territorial Studies (Bc.), FSV UK in Prague

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