TheRetailer_Autumn_2019

How can we meet our data privacy obligations while also increasing transparency via the adoption of blockchain solutions?

Jurisdictional issues The legal framework governing key issues such as contract and title varies from jurisdiction to jurisdiction, as do regulatory requirements such as data protection law or payments regulations. The use of blockchain, where nodes can be located worldwide, makes it difficult to identify the appropriate legal jurisdiction with certainty, which would mean we can’t say for certain which laws and regulations apply to the use of that blockchain and the value stored in it. The problem can be mitigated by the use of permissioned blockchain, where the nodes are controlled by a specific third party provider and use of the blockchain is governed by clear contractual documents. However, the risk is exacerbated in a permissionless environment where the blockchain is public and the nodes forming the blockchain could be located anywhere in the world. Even if a permissionless blockchain is governed by contractual documents, it may remain difficult to ascertain who the other ‘hosts’ of the ledger are and, thereby, who the contract should be enforced against. As things currently stand, it is recommended that retailers implementing blockchain solutions limit jurisdictional risk by opting for a permissioned blockchain solution. For more information about DLA Piper’s Consumer Goods, Food and Retail Sector, please visit: dlapiper.com/en/uk/sectors/consumer-goods-food-and-retail/

SOPHIE LEVETT //sophie.levett@dlapiper.com

the retailer | autumn 2019 | 45