iGB Affiliate 66 Dec/Jan | Page 45

INSIGHT GDPR RESETS THE OPERATOR/AFFILIATE RELATIONSHIP The new legislation brings many responsibilities concerning gamers but it’s also an opportunity for operators and affiliates to redefine their roles — and they must take it, says Wiggin’s Patrick Rennie THE GENERAL DATA PROTECTION REGULATION (GDPR) – for those who have been living under a bridge for the last 12 months – is new EU legislation which comes into force on 25 May, 2018. The GDPR will bring about stricter requirements for all companies in the EU that process personal data (and for those companies outside the EU that process the data of EU citizens). The new regulation will affect the gambling industry and how it uses the personal data of its players and prospective players. This article discusses the impact that the GDPR will have on affiliates, the relationship between operators and affiliates, and what measures can/ should be taken by operators as a result of GDPR to assist it in its GDPR-compliance. The GDPR retains the concept of a data controller (now called a controller). This is the party that determines the purposes and means for processing personal data. The concept of a data processor (now a processor) is also retained and refers to those who process personal data on behalf of another. It is, therefore, important to begin any discussions between operators and affiliates by determining their roles. Affiliates aim to drive individuals to an operator’s site/app with the aim of such individual signing up to become players. This means that the operator will be a controller in respect of such players once they have entered the operator’s site/ app, but prior to this the operator has no relationship with the traffic that is being driven towards its site. This brings into question the role of the affiliate, reviewed as follows: ● ●  Affiliate as a processor: The affiliate carries out its operation solely to drive traffic towards an operator and without an operator the affiliate would not be processing personal data. The affiliate acts solely on behalf of the operator. ● ●  Affiliate as a controller: Although the affiliate’s aim is to provide customers to the operator, the way in which the affiliate fulfils this task and the means in which the affiliate reaches out to prospective players is entirely up to the affiliate. The affiliate has autonomy over its processing. Although an argument could be made either way, it is likely that affiliates (acting in their usual capacity) will be controllers. This is corroborated by the ICO’s guidance note on controllers and processors where the example of an organisation that determines the precise data collected and the manner in which processing is carried out to be a controller, which is the case with affiliates. GDPR will actually lessen the impact on whether or not an affiliate is a processor or a controller as GDPR introduces liability for both. This will mean that an affiliate who is solely responsible for breaching GDPR will be liable, rather than the operator potentially being liable and then having a contractual remedy against the affiliate (as would currently be the case if an affiliate is a processor). There are two points to note, however: (i) it is still important to address if the affiliate is a controller or processor as controller-processor contracts (which would include affiliate T&Cs) must contain certain provisions under Article 28 of the GDPR; and (ii) regulators and/ or affected customers may pursue the operator rather than the affiliate under the assumption that the operator is the controller, because of the greater brand presence of operators. It is also important to note that being a controller or a processor is a question of fact not of contract and so the precise role of an affiliate will be determined by a regulator, regardless of what may be stated in the affiliate T&Cs (although the contract may be used to help a regulator reach its decision). On the whole, affiliates are most likely to be controllers in their own right and this position is probably the preferable one for operators because it would mean that any data protection breach by the affiliate should bring liability solely on to the affiliate. Of course, there may be related liability or liability under other regulation for operators to consider, as well as potential harm to the brand. In any “Affiliates are most likely to be controllers in their own right and this position is probably the preferable one for operators because it would mean that any data protection breach by the affiliate should bring liability solely on to the affiliate” iGB Affiliate Issue 66 DEC 2017/JAN 2018 41