US Data Transfers: 7 Essential Rules for Compliance
US Data Transfers are supported by the Data Privacy Framework (DPF) which is a primary legal mechanism for transferring personal data from the European Union to the United States. It provides a reliable legal basis for businesses to move data while ensuring high standards of personal data protection. This framework restores the legal “certainty” required for seamless transatlantic data flows, however it is a fragile agreement based upon poor political commitment in the US.
What is the EU Data Privacy Framework?
The Data Privacy Framework is a formal adequacy decision adopted by the European Commission on 10 July 2023. It establishes that the United States ensures an adequate level of protection for personal data transferred from the EU. US organisations must self-certify with the US Department of Commerce to participate in this programme. The
Since its adoption, over 2,500 organisations have successfully self-certified under the new framework. Statistics indicate that transatlantic trade relies on these data flows, valued at over £5.5 trillion annually. The DPF introduces new binding safeguards to limit access to data by US intelligence services to what is necessary and proportionate.
What is the UK-US Data Bridge?
The UK-US Data Bridge is a formal adequacy regulation based on the same framework as the EU Data Privacy Framework, which enables the lawful and efficient transfer of personal data from the United Kingdom to certified organisations in the United States
How to Comply with the Data Privacy Framework
Following the Data Privacy Framework requires a systematic approach to ensure your international transfers remain lawful under GDPR.
- Verify Certification: Check the official DPF list to ensure your US partner is currently active.
- Update Privacy Policies: Explicitly mention the DPF as your legal basis for US-bound transfers.
- Review Contracts: Align your commercial agreements with the new DPF principles and safeguards.
- Conduct Impact Assessments: Even with adequacy, a Transfer Impact Assessment (TIA) provides robust audit evidence.
- Enable Redress Mechanisms: Ensure individuals know how to exercise their rights through the new Review Court.
- Maintain Documentation: Keep a digital record of all transfer decisions within your compliance platform.
- Monitor Status: Regularly audit your vendors to ensure their certification has not expired or been revoked.
What is the History of EU-US Data Transfers?
The EU-US Privacy Shield was the predecessor to the DPF, serving as the main transfer mechanism from 2016 until 2020. It was designed to replace the original “Safe Harbor” agreement after that framework was also declared invalid by European courts. The Privacy Shield provided a simplified path for thousands of companies to move data across the Atlantic.
The Privacy Shield was invalidated on 16 July 2020 by the CJEU in the landmark “Schrems II” ruling. The court found that US domestic law allowed for excessive surveillance, which infringed upon EU citizens’ privacy rights. This decision caused immediate disruption for over 5,000 participating companies, leading to a requirement for companies to re-assess their US transfers.
How ProvePrivacy Solves International Transfer Challenges
ProvePrivacy simplifies compliance by centralising all aspects of your Data Privacy Framework compliance. The platform enables the creation of your Record of Processing Activities (RoPA), ensuring every US transfer is linked to a valid legal basis. This proactive approach reduces the risk of regulatory fines and ensures your organisation is always audit-ready.
Sources
- European Commission: Adequacy decision for the EU-US Data Privacy Framework
- US Department of Commerce: Data Privacy Framework Program List
- ProvePrivacy Knowledge Base: International Data Transfer Guidance
