French Data Protection Authority Blocks SOX Whistleblower Programs

As a follow-up to the Whistleblowers in France, John B. Reynolds, III and Amy E. Worlton of Wiley Rein LLP offer more insight to the programs and decisions.

CNIL found that employees’ ability to lodge anonymous complaints would increase the likelihood of malicious false reports. CNIL also found that the two companies’ plans would not provide implicated individuals with sufficient access to the records generated by the anonymous tips. Thus, these individuals would not have a sufficient opportunity to challenge accusations. Finally, CNIL held that neither of the companies’ proposals was the least restrictive means of ensuring a responsible corporate culture: employee education or improved auditing standards could achieve the same results without creating and processing personal data about company executives.

See newsletter from Wiley Rein LLP: French Data Protection Authority Blocks SOX Whistleblower Programs.

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