What is a Data Processing Agreement (DPA)?
A Data Processing Agreement (DPA) is a legal contract between data controllers and data processors, outlining how personal data will be handled, processed, and protected in compliance with privacy laws like GDPR.
Explanation:
The DPA sets forth the responsibilities and obligations of both parties regarding data protection and is an essential aspect of compliance for companies handling personal data, especially when transferring data across borders.
Practical Example of a DPA:
A European e-commerce business uses a third-party service for customer email marketing. They sign a DPA with the service provider, ensuring that customer data is processed and stored in accordance with GDPR requirements.