Operational Considerations for Privacy Shield 3.0: A New EU-U.S. Data Privacy Framework
The European Commission has recently issued an adequacy decision implementing the EU-U.S. Data Privacy Framework (DPF), aimed at providing equivalent protections for personal data as those required under the EU’s General Data Protection Regulation (GDPR). This decision acknowledges that U.S. organizations complying with the DPF offer adequate privacy protection. U.S. organizations will have the opportunity to self-certify their compliance with the DPF by registering with the U.S. Department of Commerce and attesting to their adherence to the DPF principles. The enforcement of the DPF will be overseen by the Federal Trade Commission.
It is anticipated that most U.S. organizations conducting business in Europe will prepare for and certify their compliance with the DPF, as it effectively becomes a proxy for a federal privacy law.
To transfer data from the EU to the U.S., organizations currently rely on legal data transfer mechanisms such as standard contractual clauses (SCCs), which outline data protection and privacy obligations in contracts. Additionally, there are other mechanisms such as binding corporate rules (BCRs) and EU adequacy decisions. Prior to the EU Commission’s adequacy decision for the U.S., only 14 countries had been recognized as having adequate data protection. These countries include Andorra, Argentina, Canada, Faroe Islands, Guernsey, Israel, Isle of Man, Japan, Jersey, New Zealand, Republic of Korea, Switzerland, the United Kingdom, and Uruguay. With the DPF’s certification, U.S. organizations will now benefit from this adequacy decision.
This article series will focus on the practical and operational considerations for U.S. organizations that are contemplating certifying under the DPF.
The migration of sites is not expected to be significant, but it will serve as an indication that companies can initiate the first step towards compliance by reviewing the Privacy Shield requirements in comparison to the DPF. This assessment will help identify any gaps in compliance, which will be the main focus of our next article.
In the upcoming article, we will delve into the requirements of the DPF, emphasizing the overlaps with both the GDPR and the California Privacy Protection Act (CCPA). Moreover, we will provide an overview of the requirements that we anticipate will pose the greatest challenges for organizations in terms of compliance.
Please note that the content of this article is intended to serve as a general guide on the subject matter and should not replace seeking specialist advice tailored to your specific circumstances. Our mission is to provide valuable insights and information to our readers regarding privacy protection.
As developments in the EU-U.S. Data Privacy Framework continue to unfold, we will keep you informed with accurate and relevant updates.
Footnotes:
[1] The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
