GDPR – What Are The Model Contract Clauses?

Enacted in May 2018, the European Union (EU) General Data Protection Regulations (GDPR) can also impact U.S. businesses. For example, I was recently asked to review "Model Contract Clauses" that my local client received from a company in the EU. The client found this request odd given that he already had a contract with the EU company. The EU company recently became subject to the GDPR, as noted by the EU company. However, my client had never given any thought to the GDPR and had no idea what to make of the Model Contract Clauses that he was being asked to sign. I proceeded to give my client a primer on the GDPR and the Model Contract Clauses.

Chapter V of the GDPR outlines the laws that govern transfers of data outside of the EU (called international transfers). The GDPR requires that data may only be transmitted outside the EU if a sufficient level of data protection exists in the recipient's territory/jurisdiction. The European Commission has determined which