Legal experts have expressed concern over SA`s unhurried approach to adopting data protection legislation, warning that lack of action could have an adverse impact on the economy and stifle future foreign investment in the country.
While Parliament is mulling recommendations put forward by the South African Law Commission in 2003, a growing number of foreign entities are seeking clarity on the country`s data protection laws, says Rohan Isaacs, a director at commercial law firm Deneys Reitz.
Isaacs says that, as part of the global economy, the protection of customer data has become more than a moral issue, but rather a legal necessity. A protracted approach to the enactment of governing legislation could threaten SA`s position in the global economy.
Internationally, he notes, some 30 countries - including most of SA`s major trading partners - have enacted data protection legislation. Organisations in these countries increasingly require assurances from South African entities, with which they deal, regarding the legal protection of any confidential data transmitted to them.
The South African Law Commission - which released its findings on the subject towards the end of 2003 - has recommended that legislation be enacted in this country. Isaacs points out that a concern raised by the commission was that organisations often disclose information about themselves without full knowledge of the purposes for which the information may be used.
The Electronic Communications and Transactions Act of 2002, he says, contains certain rules regarding the collection of personal information electronically, but these rules are not compulsory.
"The reason for these rules not being compulsory is that it was envisaged that future data protection legislation would cover a wide range of issues regarding electronic data transmission. However, with the release of the Law Commission`s report, no draft legislation was even published, which is not what we really expected."
Isaacs believes the situation is becoming increasingly urgent, as more and more foreign businesses are seeking clarity on SA`s data protection laws.
"At the moment there is nothing, and this could create resistance to them doing business with us."
While most local organisations should have their own rules and policy regarding data protection, Isaacs does not believe this is sufficient.
"Many companies enter into private agreement through which data protection is regulated. This is a start, but it`s not legislation."
Should Parliament pass a Bill for the drawing up of legislation, it would most likely be up to the Department of Trade and Industry or the Department of Communications to drive the process.
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