What is a DPA: Basics of a data processing agreement.
We live in an increasingly digital world, which requires companies to process data. How they handle all that data is strictly controlled. One common regulatory tool is the data processing agreement or DPA. Here, we explore what a DPA is and the considerations that often come with it.
What is a data processing agreement (DPA)?
The European Union introduced data processing agreements in 2018 to control how businesses handle the personal data of EU citizens under the General Data Protection Regulation (GDPR). A DPA is a binding document signed between the data controller and the data processor.
The data controller is the person or party that determines how and why the data is processed. The data processor is the party that does the practical data processing work.
A DPA establishes, among other things:
- The scope and purpose of data processing
- What data can the processor access
- How both parties will protect the data
- What is the relationship between the controller and processor
When is a data processing agreement required?
A DPA becomes necessary under two primary circumstances: compliance with privacy laws and maintaining data integrity when outsourcing data processing tasks.
Under regulations like the GDPR in the European Union, any organization that processes personal data must ensure that its processors adhere to strict data protection standards. This regulation means whenever an organization engages a service provider to handle personal data, a DPA is required to bind the processor and legally protect that data.
Who needs to sign a DPA?
IT and software development companies most often need to sign a DPA. According to the GDPR, however, any company that processes private data from EU citizens must sign a DPA. Contact a relevant legal expert to see if you need a DPA.
What to watch out for when signing a data processing agreement.
When you sign a DPA, ensure it provides sufficient data protection guarantees. You must also clearly establish how your processor will use the data and whether the agreement contains loopholes or room for interpretation.
What happens if a DPA is violated?
Violating a data processing agreement can have significant consequences for the organization that owns the data and the entity processing data on behalf of the controllers. Some consequences include:
- Legal and financial penalties
- Loss of trust and reputation damage
- Operational disruptions
- Legal disputes and litigation
How to easily sign a data processing agreement (DPA).
The easiest way to sign a DPA is to use digital signatures. They’re legally binding and much faster and cheaper than pen-and-paper signatures. Adobe Acrobat lets you quickly request signatures, add an electronic signature, track the process, and protect your documents with passwords and digital certificates.
Discover more ways Acrobat for business can help you sign your digital contracts and explore all the tools in place for contract management.