U.S. Privacy and Data Protection | Insights | Oct. 2024 (Federal Law)

The EU-U.S. Data Privacy Framework (DPF) marks a significant milestone in international data protection by providing a robust mechanism for transatlantic data transfers. Companies that collect and process personal data internationally should understand implications of the DPF and how it updates the previous Privacy Shield requirements.

What is the Data Privacy Framework?

The DPF is a voluntary program that allows U.S. organizations to transfer personal data/information from the EU to the U.S. It replaces the invalidated EU-U.S. Privacy Shield and addresses concerns raised by the European Court of Justice in the Schrems II decision.

Why is the DPF important?

The DPF is vital for several reasons:

• Legal Compliance: It provides a mechanism for U.S. companies to comply with EU data protection laws, including the General Data Protection Regulation (GDPR)
• Business Continuity: It enables the continuation of transatlantic data flows, which are crucial for many businesses operating across international regions
• Enhanced Data Protection: The framework introduces stronger safeguards for EU citizens' personal data when transferred to the U.S.

Key Updates from Privacy Shield

The DPF addresses the shortcomings of the Privacy Shield by:

• Limiting U.S. Intelligence Access
• Providing Independent Redress Mechanisms
• Requiring Stricter Data Deletion Practices

How Can Companies Comply?

To comply with the DPF, companies should:

• Self-Certification: U.S. organizations must self-certify their adherence to the DPF principles through the U.S. Department of Commerce
• Privacy Policy Update: Develop a DPF-compliant privacy policy that reflects the organization's data handling practices and individual rights
• Independent Recourse Mechanism: Identify and implement an Independent Recourse Mechanism (IRM) to resolve disputes
• Data Protection Measures: Implement appropriate technical and organizational measures to protect personal data
• Regular Audits: Conduct periodic reviews to ensure ongoing compliance with DPF principles

Conclusion

For international businesses, compliance with the DPF is not just a way to comply with legal requirements, but also demonstrates commitment to data privacy and security on a worldwide scale. As the regulatory landscape continues to evolve, staying informed and adaptable will be key to maintaining compliance and fostering international business relationships.

Kronenberger Rosenfeld, LLP regularly advises clients regarding data and privacy compliance. Contact our firm using our online case submission form.