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Data processing addendum (DPA)

Sub-processors · transfers · incidents · audit · security · deletion
WHAT IT IS

The addendum governing the personal information you process on behalf of a customer.

WHEN IT COMES INTO PLAY

As soon as your service touches personal information, which is more and more with every sale.

WHY IT MATTERS

The DPA has become unavoidable: customers ask for it as soon as you process personal information for them, and their compliance teams read it closely. It allocates obligations around security, incidents and sub-processing.

WHAT IT OFTEN CONTAINS
01
Roles of the parties and purposes
Who decides the purposes of processing and who acts on the other's behalf.
02
Security measures
Technical and organizational measures, often described in a schedule.
03
Sub-processors
The list of authorized sub-processors and the procedure to add new ones.
04
Transfers outside the country
The conditions governing disclosure of information outside the country.
05
Incident notice
The timing and content of notice to the customer in case of a privacy incident.
06
Return and deletion of data
What happens to data at the end of the contract: return, deletion and certification.
WHAT OFTEN GETS NEGOTIATED
Incident notice deadline
WHAT THE BUYER OFTEN ASKS FOR
Incident notice within 24 hours, or immediately.
SUPPLIER SIDE
Notice without undue delay, with a realistic target and updates as the investigation progresses.
Audit rights
WHAT THE BUYER OFTEN ASKS FOR
On-site audits at any time.
SUPPLIER SIDE
Third-party reports and questionnaires first; an on-site audit only after an incident, with notice.
Sub-processor approval
WHAT THE BUYER OFTEN ASKS FOR
Prior approval of every new sub-processor.
SUPPLIER SIDE
Prior notice with a right to object on reasonable grounds.
Unlimited liability for breaches
WHAT THE BUYER OFTEN ASKS FOR
Unlimited liability for any data breach.
SUPPLIER SIDE
A dedicated super-cap, higher than the general cap, but defined.
SAMPLE CLAUSE
INCIDENT NOTICE

« The Supplier shall notify the Customer without undue delay, and no later than seventy-two (72) hours after becoming aware of a privacy incident affecting the Customer's personal information. »

IN PLAIN TERMSIf there's a leak, you notify the customer quickly, within a clear limit, so they can meet their own obligations.
BEFORE YOU SIGN
Are the parties' roles clearly identified?
Do the security measures reflect reality?
Is the sub-processor list up to date?
Is the incident notice deadline realistic?
Is liability capped?
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