{"id":2266,"date":"2023-08-03T13:05:00","date_gmt":"2023-08-03T19:05:00","guid":{"rendered":"https:\/\/trustarc.com\/?post_type=resource&#038;p=2266"},"modified":"2024-10-03T11:59:49","modified_gmt":"2024-10-03T17:59:49","slug":"selecting-the-best-eu-us-data-transfer-mechanism","status":"publish","type":"resource","link":"https:\/\/trustarc.com\/resource\/selecting-the-best-eu-us-data-transfer-mechanism\/","title":{"rendered":"Selecting the Best EU-US Data Transfer Mechanism for Your Business"},"content":{"rendered":"\t\t<section id=\"block_ee6989dbb93ff40ea4c7d8074a13b062\" class=\"resource-intro intro-simple\">\n\t\t\t<div class=\"container\">\n\t\t\t\t\t\t\t\t\t<strong class=\"sub-title block uppercase\">Articles<\/strong>\n\t\t\t\t\t\t\t\t\t\t<h1>Selecting the Best EU-US Data Transfer Mechanism for Your Business<\/h1>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\n\n\t<section id=\"block_e70df73fb508a4751a4fa6e5157cd67b\" class=\"columns-content\">\n\t\t<div class=\"container\">\n\t\t\t<div class=\"left\">\n\t\t\t\t\t\t<div class=\"person-wrap\">\n\t\t\t<a href=\"https:\/\/trustarc.com\/people\/casey-kuktelionis\/\">\t\t\t\t\t\t\t<div class=\"img-holder\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1080\" height=\"1080\" src=\"https:\/\/trustarc.com\/wp-content\/uploads\/2024\/02\/casey-thumbnail.png\" class=\"attachment-full size-full wp-post-image\" alt=\"\" srcset=\"https:\/\/trustarc.com\/wp-content\/uploads\/2024\/02\/casey-thumbnail.png 1080w, https:\/\/trustarc.com\/wp-content\/uploads\/2024\/02\/casey-thumbnail-300x300.png 300w, https:\/\/trustarc.com\/wp-content\/uploads\/2024\/02\/casey-thumbnail-1024x1024.png 1024w, https:\/\/trustarc.com\/wp-content\/uploads\/2024\/02\/casey-thumbnail-150x150.png 150w, https:\/\/trustarc.com\/wp-content\/uploads\/2024\/02\/casey-thumbnail-768x768.png 768w, https:\/\/trustarc.com\/wp-content\/uploads\/2024\/02\/casey-thumbnail-199x199.png 199w, https:\/\/trustarc.com\/wp-content\/uploads\/2024\/02\/casey-thumbnail-120x120.png 120w\" sizes=\"auto, (max-width: 1080px) 100vw, 1080px\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<div class=\"text-holder\">\n\t\t\t\t\t\t\t\t\t\t\t<strong class=\"block name\">Casey Kuktelionis<\/strong>\n\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/a>\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t<div class=\"middle\">\n\t\t\t\t<div class=\"content\">\n\t\t\t\t\t<h2>The state of EU-US data transfer mechanisms in 2023<\/h2>\n<p>Since 2000 regulators have tried to keep an EU-US data transfer mechanism in place. From 2000-2015 it was <a href=\"https:\/\/blog.trustarc.com\/2015\/10\/09\/u-s-eu-safe-harbor-whats-next\/\">Safe Harbor<\/a>. From 2016 until 2020 it was <a href=\"https:\/\/blog.trustarc.com\/2019\/06\/18\/privacy-shield-legal-challenges\/\">Privacy Shield<\/a>. And now through the EU-US Data Privacy Framework, the US is once again deemed as adequate for data transfers by the EU.<\/p>\n\t\t\t\t\t\t\t\t<blockquote class=\"w-indent\">\n\t\t\t\t\t\t\t\t\t<p>Despite taking different approaches to data protection in each region, there\u2019s a desire to cooperate from both sides of the Atlantic. That\u2019s because the \u201cEuropean Union and the United States have the largest bilateral trade and investment relationship and enjoy the most integrated economic relationship in the world,\u201d <a href=\"https:\/\/policy.trade.ec.europa.eu\/eu-trade-relationships-country-and-region\/countries-and-regions\/united-states_en\">according to the EU<\/a>.<\/p>\n<p>And, \u201cThe transatlantic relationship is a key feature of the overall global economy and trade flows. For most countries, either the EU or the US is the largest trade and investment partner.\u201d<\/p>\n\t\t\t\t\t\t\t\t<\/blockquote>\n\t\t\t\t\t\t\t\t<p>Businesses in the EU and US have a constant need to transfer data across borders. This includes information about users as well as employees. Trade between these nations directly supports 9.4 million jobs and indirectly 16 million jobs.<\/p>\n<p>Additionally, as society becomes more digital, the number of vendors and third party service providers continues to increase. These partnerships often rely on data transfers, or in other words, information sharing, to achieve desired outcomes.<\/p>\n<h3>Examples of non-obvious data transfers from the EU to the US<\/h3>\n<p>EU-US data transfers can be tricky due to different regulations and individual protections in each country. Sharing data has become such a normal part of business operations that some may not even realize they\u2019re conducting a cross border data transfer. Below are just a few of the many possible data transfer examples.<\/p>\n<ul>\n<li>Storing data in a cloud service provider located in the US, where the personal information of EU individuals is uploaded and stored.<\/li>\n<li>Sending emails containing personal data to recipients or email servers located in the US.<\/li>\n<li>Allowing employees located in the US to access and process personal data originating from the EU.<\/li>\n<li>Using a CRM platform hosted in the US to store and manage customer data originating from the EU.<\/li>\n<li>Replicating and storing data backups in servers located in the US.<\/li>\n<li>Transferring personal data to social media platforms headquartered in the US when individuals from the EU use these platforms.<\/li>\n<li>Utilizing analytics tools or trackers hosted in the US that collect and process data from EU visitors on websites or mobile applications.<\/li>\n<li>Employing SaaS solutions hosted in the US that involve processing personal data originating from the EU.<\/li>\n<li>Using HR management platforms hosted in the US that handle the personal data of EU employees or job applicants.<\/li>\n<\/ul>\n<h2>What data transfer methods from the EU exist?<\/h2>\n<p>After Privacy Shield was invalidated in 2020, businesses had to use other EU-US data transfer mechanisms. Chapter 5 of the GDPR is dedicated to transfers of personal data to third countries or international organizations and Articles 44 \u2013 50 explain the authorized data transfer methods.<\/p>\n<h3>EU transfers on the basis of an adequacy decision<\/h3>\n<p>Adequacy decisions are made by the European Commission about transferring data to a third country, territory, or international organization. Once a country is deemed adequate, the data transfer won\u2019t require any specific authorization or further safeguards.<\/p>\n<p>The decision will be reviewed at least once every four years to ensure adequate protection of personal data. The commission takes into account the third party\u2019s rule of law, the existence of a supervisory authority, and the international commitments entered into by the third party.<\/p>\n<h3>Standard Contractual Clauses<\/h3>\n<p>Most businesses implemented SCCs as a result of the Schrems II ruling. <a href=\"https:\/\/blog.trustarc.com\/2022\/04\/26\/eu-standard-contractual-clauses\/\">Revised in 2021<\/a>, SCCs can be applied to data transfers where the recipient\u2019s organization would not be directly subject to the GDPR for the processing operation. If an organization offers goods or services or monitors individuals\u2019 behavior in the European Economic Area, SCCs can\u2019t be used.<\/p>\n<p><a href=\"https:\/\/commission.europa.eu\/publications\/standard-contractual-clauses-international-transfers_en\" target=\"_blank\" rel=\"noopener\">SCCs are approved by the European Commission<\/a> and are incorporated into data transfer agreements between the EU data exporter and the US data importer to provide appropriate safeguards for the transferred data.<\/p>\n<h3>Binding Corporate Rules<\/h3>\n<p>This transfer method allows multinational organizations to implement BCRs for transfers of personal data within their group of companies. The BCR must be approved by relevant data protection authorities and provides legally binding commitments to protect personal data across the organization.<\/p>\n<h3>Explicit consent<\/h3>\n<p>GDPR Article 49 permits the transfer of personal data to a third country, including the US, based on the explicit and informed consent of the individual. However, explicit consent should meet the GDPRs stringent requirements and must be freely given, specific, informed, and unambiguous.<\/p>\n<h2>Comparing EU-US data transfer mechanisms: Which is best?<\/h2>\n<p>While each has its pros and cons, using the EU-US Data Privacy Framework (an adequacy decision) is the most cost-effective \u2013 both in terms of time and money for businesses. It\u2019s the fastest and most scalable option. Businesses must certify for the Data Protection Framework once and verify annually. There are no TIAs or supplementary measures required.<\/p>\n<p>The framework ensures that a well implemented privacy program is in place and is a public facing commitment to using personal information fairly, lawfully, and transparently. A DPF verification demonstrates accountability to regulators and the Department of Commerce and provides your business credibility as a vetted trading partner, vendor, and service provider.<\/p>\n<h3>The problems with using SCCs for EU-US personal data transfers<\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2267 alignright\" src=\"https:\/\/trustarc.com\/wp-content\/uploads\/2024\/02\/Complexities-of-SCCs-TrustArc-1-scaled.jpg\" alt=\"Infographic demonstrating the complexities of SCCs\" width=\"135\" height=\"300\" srcset=\"https:\/\/trustarc.com\/wp-content\/uploads\/2024\/02\/Complexities-of-SCCs-TrustArc-1-scaled.jpg 1149w, https:\/\/trustarc.com\/wp-content\/uploads\/2024\/02\/Complexities-of-SCCs-TrustArc-1-135x300.jpg 135w, https:\/\/trustarc.com\/wp-content\/uploads\/2024\/02\/Complexities-of-SCCs-TrustArc-1-460x1024.jpg 460w, https:\/\/trustarc.com\/wp-content\/uploads\/2024\/02\/Complexities-of-SCCs-TrustArc-1-768x1711.jpg 768w, https:\/\/trustarc.com\/wp-content\/uploads\/2024\/02\/Complexities-of-SCCs-TrustArc-1-690x1536.jpg 690w, https:\/\/trustarc.com\/wp-content\/uploads\/2024\/02\/Complexities-of-SCCs-TrustArc-1-919x2048.jpg 919w, https:\/\/trustarc.com\/wp-content\/uploads\/2024\/02\/Complexities-of-SCCs-TrustArc-1-1440x3208.jpg 1440w\" sizes=\"auto, (max-width: 135px) 100vw, 135px\" \/><br \/>\nStandard contractual clauses are a tedious process. They must be completed for every vendor, service provider, and client. (A separate SCC is required for each business activity that transfers personally identifiable information to the US.)<\/p>\n<p>And SCCs require Transfer Impact Assessments (TIA) for each contract and may also require supplementary measures. New transfers don\u2019t fit into the existing process, and every contract needs to be updated for every new transfer.<\/p>\n<p>Using SCCs as your data transfer method can put the business at risk of delay with vendors, providers, service contractors, and clients. Some vendors may even refuse to agree to SCC terms or sign altogether.<\/p>\n<a href=\"\/wp-content\/uploads\/2024\/02\/Complexities-of-SCCs-TrustArc-1-scaled.jpg\" target=\"_blank\" rel=\"noreferrer\" class=\"btn\"><span>View the infographic<\/span><\/a><h3>The difficulties of using BCRs for EU-US personal data transfers<\/h3>\n<p>Binding Corporate Rules aren\u2019t an option for all companies; they\u2019re often the least used. BCRs need approval from data protection authorities and depending on the entity this could involve several authorities.<\/p>\n<p>The main difficulty of BCRs is the sheer amount of internal resources and legal fees spent to evaluate risk, write contracts, and develop BCRs for all areas of personal data across the organization. This process is cumbersome and can take several years.<\/p>\n<p>As a transfer mechanism, BCRs aren\u2019t flexible and are very limited in scope. Lastly, Binding Corporate Rules don\u2019t address governance and enforceability.<\/p>\n<h3>What about using consent for EU-US personal data transfers?<\/h3>\n<p>The problem with relying on consent for EU-US personal data transfers is its lack of scalability. Consent in this case was designed for infrequent transfers of very few records.<\/p>\n<p>Additionally, this opens your company up to upstream and downstream responsibilities concerning how your vendors and service providers meet GDPR requirements with your customer\u2019s data.<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t<div class=\"right sm\">\n\t\t\t\t<div class=\"share-it\">\n\t\t\t\t\t<strong class=\"title block uppercase\">Follow us<\/strong>\n\t\t\t\t\t<div class=\"soc-list\">\n\t\t\t\t\t\t<a href=\"https:\/\/www.linkedin.com\/company\/trustarc\/\" target=\"_blank\"><img decoding=\"async\" src=\"https:\/\/trustarc.com\/wp-content\/themes\/trustarc\/assets\/dist\/images\/li-dark.svg\" alt=\"\" \/><\/a>\n\t\t\t\t\t\t<a href=\"\nhttps:\/\/twitter.com\/TrustArc\" target=\"_blank\"><img decoding=\"async\" src=\"https:\/\/trustarc.com\/wp-content\/themes\/trustarc\/assets\/dist\/images\/tw-dark.svg\" alt=\"\" \/><\/a>\n\t\t\t\t\t\t<a href=\"javascript:;\" id=\"copy-url\"><img 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The EU-US Data Privacy Framework? SCCs? BCRs? Consent? How do you know?<\/p>\n","protected":false},"featured_media":1256,"template":"","topic-resource":[59],"type-resource":[6],"class_list":["post-2266","resource","type-resource","status-publish","has-post-thumbnail","hentry","topic-resource-data-transfers","type-resource-articles"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Selecting the Best EU-US Data Transfer Mechanism for Your Business | TrustArc<\/title>\n<meta name=\"description\" content=\"Since the United States has been deemed adequate for data transfers, which EU-US data transfer mechanism is right for your business? The EU-US Data Privacy Framework? SCCs? BCRs? Consent? 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