As businesses continue to navigate the ever-changing landscape of data privacy laws, one important regulation that companies need to be aware of is the General Data Protection Regulation (GDPR) of the European Union. The regulation, which came into effect in 2018, aims to protect the personal data of European citizens and standardize data protection laws across the EU.
Under GDPR, companies must obtain explicit consent from individuals before collecting and processing their personal data. Additionally, companies who work with other businesses (B2B) must enter into a company-to-company agreement (CTA) to ensure that any personal data shared between the two entities is processed in compliance with GDPR.
A CTA is a legal agreement between two companies that outlines the terms and conditions of data processing activities. The agreement should include details on the types of data being processed, how it will be used, who will have access to it, and how it will be secured.
CTAs are essential for businesses that process personal data within the EU, even if they are located outside of the EU. If a company is found to be in violation of GDPR, they could face hefty fines of up to four percent of their global annual revenue or €20 million, whichever is greater.
When creating a CTA, it’s important to work with legal professionals who specialize in data privacy laws to ensure the agreement is legally binding and compliant with GDPR. At a minimum, the CTA should include the following provisions:
– A clear definition of personal data and what types of data will be processed under the agreement
– The purposes for which the personal data will be processed and how it will be used
– The duration for which the personal data will be processed
– The obligations of both parties to ensure compliance with GDPR, including data security measures, data subject rights, and breach notification procedures
– A provision for terminating the agreement in the event that one party breaches their obligations
In conclusion, if your company is involved in B2B data processing activities that involve personal data of EU citizens, it’s important to have a CTA in place to ensure compliance with GDPR. Work with legal professionals to draft a compliant agreement that protects the personal data of individuals and mitigates the risk of costly fines for non-compliance.
English
Português