The EU US Data Privacy Framework: What it is and why it matters.
Are you a US business owner with clients or customers in the EU? Or, are you thinking about expanding your business into the EU? Then this blog is for you! We’re talking all about the new EU US DPF (Data Privacy Framework): What it is, why it was created, and why it matters to you as a business owner.
What is the EU US Data Privacy Framework?
The EU US DPF is a program that launched on July 17, 2023 with the purpose of ensuring that any personal data transfers from the EU to the US follow all EU data privacy laws. It gives businesses peace of mind that they’re transferring their data safely and legally in a way that is also simplified and more affordable.
What led to the creation of the EU US Data Privacy Framework?
Because EU data privacy laws are considerably stricter than those in the US, businesses were (whether intentionally or not), sharing data in ways that violated those laws. Specifically, the EU has not found US privacy laws adequate to protect the personal data of EU residents. Businesses therefore cannot legally transfer such data to the US without putting voluntary protections in place.
Prior to the new Data Privacy Framework, there were two others (the Safe Harbor Framework and the Privacy Shield Framework) designed to ensure businesses were transferring data legally. However, both of these programs were invalidated for a variety of reasons, ultimately boiling down to the fact that neither adequately followed EU data privacy laws. The EU US DPF is the current attempt at a program that will ensure legal transferring of personal data.
How does the EU US Data Privacy Framework Affect Me as a Business Owner?
Now that we’ve covered the background of the program and its basic purpose, let’s talk about why it’s important for you.
This program is applicable to you if your US-based business collects ANY personal information from citizens in the EU. Not sure if you fall under that category? Here are a couple examples of things that would make your business relevant to this program…
● Online business services that have clients who are EU citizens
● Online stores that sell products (physical or digital) in the EU
● Running advertisement campaigns or market research surveys in the EU
● Collecting any personal information with an intent to refer EU citizens to other businesses
Although joining the EU US DPF is a voluntary decision, it’s important to do so for your business. Enrolling in the program is an affordable way to legally transfer data so you can check your legal boxes and avoid unintentionally breaking EU data privacy laws (which could otherwise result in negative consequences such as selling bans and fines).
In order to participate in the EU US Data Privacy Framework, you can start the process of applying through the government website. This site also provides more in-depth information regarding the program’s details if you want to learn more.
We know that navigating the ins and outs of running your business outside of the US can feel overwhelming, so if you have any questions about how to do so legally, reach out to us here at Kliebert Law. We’re always happy to help!