Today was a bad day for privacy legislation. Europe’s highest court ruled on Tuesday, that Safe Harbor, a widely used international privacy regulation agreement between the European Union and the United States is invalid. With so many companies integrated with American technology companies, who process personal data through their systems, many are rushing to comply with the new rules. Smaller SMB’s are hit hardest by these new regulations as their ability to change technological usage practices, especially in the cloud, give them limited opportunities.
The Data Protection Report has given a list of guidelines on how to comply with these changes such as:
- B2B providers storing data in the cloud
Consider moving cloud storage to the EEA. Consider shifting to a cloud provider that accepts model clauses (many now do). Consider updating agreements with subcontractors to include robust audit requirements, relying on the changes in the legal requirements as justification. Many contracts envision negotiating changes that are necessary to comply with changes in legal requirements.
- Global companies that manages HR in the US
For managing HR data, model clauses probably make the most sense, because the parties (entities under common control in Europe and US) do not engage in arm’s-length transactions and thus are unlikely to enforce the more onerous model clause provisions against each other.
You can find the full list here: http://www.dataprotectionreport.com/2015/10/day-after-safe-harbor-action-plan-anticipating-ecj-schrems-decision/
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