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Global Work Glossary

What is a Data Processing Agreement (DPA)?

A GDPR Data Processing Agreement (DPA) is a legal contract that outlines how a company's data processor will handle personal data in accordance with GDPR guidelines.

Purpose and Importance of a DPA

A DPA is essential for preventing data breaches and ensuring compliance with GDPR regulations, as it specifies how personal data will be processed, the duration of processing activities, and other relevant details.

Validity and Form of a DPA

A DPA can be in written or electronic form, serving as a legally binding agreement between the company and its data processor.

In Europe, having a DPA is a legal requirement, while in other countries, it is strongly recommended to ensure understanding of responsibilities and consequences related to personal data handling.

Need for a DPA

A DPA guarantees appropriate security measures and GDPR compliance for data processing activities, particularly when outsourcing such tasks to third-party providers like cloud services.

Requirement for Third-party Services

Businesses relying on third-party services for data processing, such as analytics software or cloud storage, must have DPAs in place with each service provider to achieve GDPR compliance.

Signing Parties and Consequences of Non-compliance

All parties involved in data processing, including the data controller, data processor, and subprocessors, must sign a DPA to avoid liability in case of mishandling data and potential data breaches.

Consequences of Non-compliance

Failure to sign a DPA or non-compliance with GDPR regulations can lead to financial penalties, reputation damage, and loss of customer trust.

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