If you are a business owner subject to the GDPR, it is in your best interest to have a data processing agreement: first, this is necessary for GDPR compliance, but the DPA also gives you assurance that the data processor you use is qualified and capable. Recital 81 states: The agreement must oblige the processor to take all necessary security measures to comply with the security of processing requirements (see Article 32). However, there are two levels of fines, depending on the seriousness and nature of the offence. Fines imposed by the GDPR for data processor-related breaches typically fall under the first tier, which can reach €10 million or 2% of global revenue, according to the guidelines. In any case, signing a data processing agreement and complying with the conditions is much less painful than paying a GDPR fine. We hope this guide helps. For easier to understand help on GDPR compliance, check out our GDPR checklist. One aspect of this compliance is the implementation of a Data Processing Agreement (DPA). A GDPR data processing agreement sets out the details, rules, rights and obligations related to data processing activities. It helps ensure business compliance, protect data, and protect and satisfy consumers.
If you are one of our clients, we have a DPA template that you can use in the app and customize to simplify this whole process. But if you`re not a customer with us (first, you need to arrange a call with us; but until then), here`s what an DPA should include. The terms of a DPA are negotiated between the defendant and the government. For example, the agreement could require the defendant to admit wrongdoing, pay reparations, or take certain steps to prevent future wrongdoing. For example, a DPA may require a company to fire executives responsible for the misconduct, implement a more robust compliance program, submit to an independent monitor to ensure honest behavior, or all of the above – and perhaps even more. GDPR compliance requires data controllers to sign a data processing agreement with all parties acting as data processors on their behalf. If you need definitions of these terms, you can find them in our article “What is GDPR”, but generally a data processor is another company you use to help you store, analyze or communicate personal data. For example, if you are a health insurance company and you exchange customer information via encrypted emails, this encrypted email service is a data processor. Or if you use Matomo to analyze your website traffic, Matomo would also be a data processor. When you build global teams focused on data security, you work with globalization partners. Our professional teams can help you understand the rules of data processing agreements that apply to your business.
A good place to start is to take a look at the DPAs currently used by enterprise processors. For example, HubSpot`s DPA is easy to find and read. However, data processing agreements are lengthy and reading a few to inform your own contractual structure can be time-consuming. For example, the processor must require permanent employees, temporary workers, and subcontractors to sign confidentiality agreements before they can start processing personal data. A confidentiality agreement only becomes superfluous if a legal obligation already obliges the processor to guarantee confidentiality. The controller must ensure that the scope of the processor`s DPA does not exceed the initial legal basis for the data processing. In other words, the processor should only be able to use the data for the purposes specified in the agreement. It is the controller`s responsibility to verify how the processor uses the data it transmits to it. With respect to data processing agreements, there may be penalties for both the controller (for example, if it does not have a data processing agreement) and the data processor (if it does not comply with them). A data processing agreement is a contract signed between controllers and processors who process their data.
It is necessary for full compliance with the GDPR.