What is a Data Processing Agreement (DPA)?
A Data Processing Agreement (DPA) is a legal agreement between a data controller and a data processor. The agreement outlines the terms and conditions under which the data processor can process personal data on behalf of the data controller.
The DPA is an essential element of the General Data Protection Regulation (GDPR) since May 25, 2018. The GDPR requires a written agreement between the data controller and data processor, which outlines the data processing terms and conditions.
Why is a DPA important for businesses?
A DPA is important for businesses as it outlines the responsibilities and obligations of data processors and data controllers. It’s a vital measure for ensuring that personal data is protected and is essential for complying with GDPR.
The GDPR places strict rules on data processors, such as keeping the data confidential, reporting data breaches, and complying with data subject requests, among others. A DPA establishes the specific terms and conditions for data processing, and outlines how the data processor will comply with the GDPR.
Businesses must ensure that they have a DPA in place before they engage in data processing activities with a data processor. Failure to comply with GDPR requirements can result in significant penalties and legal action.
What should a DPA include?
A DPA should include the following essential elements:
– Data processing details: The agreement should outline the specific data processing activities that the data processor undertakes on behalf of the data controller.
– Data subject rights: The agreement should define how the data processor will assist the data controller to comply with data subject rights, such as access, rectification, and deletion.
– Confidentiality and security: The agreement should state that the data processor will keep the data confidential and secure. The GDPR requires data processors to take appropriate technical and organizational measures to protect personal data.
– Data breaches: The agreement should outline the data processor’s obligation to report any data breaches to the data controller.
– Data transfer: If the data processor transfers personal data to a third country or international organization, the DPA should describe the safeguards that the data processor has in place for such transfers.
– Subprocessors: If the data processor engages a subprocessor, the DPA should outline the conditions under which a subprocessor can act on behalf of the data processor.
– Termination: The DPA should define the conditions under which the agreement will terminate.
Conclusion
A DPA is essential for businesses that engage with data processors for data processing activities. The GDPR requires a written agreement between data processors and data controllers, outlining the specific terms and conditions under which the data processor can process personal data.
A DPA should include the essential elements, such as data processing details, confidentiality and security, data breaches, data subject rights, and data transfer. Ensuring compliance with GDPR requirements can avoid significant legal penalties and reputation damage.