Obligations of the data exporter: Overview, definition, and example
What are the obligations of the data exporter?
The obligations of the data exporter refer to the responsibilities of an organization or entity that transfers personal data to another organization or entity, typically located in another country. The data exporter must ensure that the transfer complies with data protection laws and regulations, such as the General Data Protection Regulation (GDPR) in the European Union. These obligations are designed to protect the privacy and security of the personal data being transferred and ensure that the data is processed in a lawful, fair, and transparent manner.
Key obligations of the data exporter typically include ensuring that the data transfer is legal, maintaining data security, providing information to data subjects (individuals whose data is being transferred), and ensuring that the recipient of the data (the data importer) also complies with applicable data protection standards.
Why are the obligations of the data exporter important?
The obligations of the data exporter are important because they help ensure that personal data is handled in compliance with data protection laws, preventing unauthorized access, use, or loss of sensitive information. By clearly outlining these obligations, organizations can avoid legal penalties and reputational damage that could arise from data breaches or violations of privacy laws. Furthermore, these obligations provide data subjects with assurance that their personal data is being treated with respect and protected when transferred across borders. This is crucial as organizations increasingly operate globally and need to manage cross-border data flows securely and responsibly.
Understanding the obligations of the data exporter through an example
Let’s say a company in the European Union (EU) is transferring employee data to a third-party service provider located in the United States. The company, acting as the data exporter, has several key obligations to fulfill before the transfer takes place:
- Ensuring legality: The company must ensure that the transfer of personal data is legal under applicable laws, such as the GDPR. For example, the company may need to implement standard contractual clauses or obtain consent from the employees.
- Providing transparency: The company must inform the employees about the data transfer, including who will receive their data, why it is being transferred, and how long it will be retained.
- Ensuring data security: The company must ensure that the data is protected during transfer by implementing appropriate technical and organizational measures, such as encryption or access control mechanisms.
- Due diligence on the data importer: The company must verify that the recipient of the data, in this case, the third-party service provider, provides adequate protections for the data and adheres to the same level of data protection as required by the laws governing the data exporter.
An example of the obligations of the data exporter clause
Here’s how a clause related to the obligations of the data exporter might appear in a data processing agreement:
"The Data Exporter agrees to comply with all applicable data protection laws and regulations regarding the transfer of personal data. The Data Exporter shall ensure that the transfer is lawful and that all required consents, approvals, or other legal bases for transfer are obtained. The Data Exporter shall provide clear and transparent information to data subjects about the data transfer and ensure that appropriate safeguards are in place, including but not limited to the use of standard contractual clauses or binding corporate rules."
Conclusion
The obligations of the data exporter are crucial in ensuring that personal data is handled properly when it is transferred across borders. By fulfilling these obligations, the data exporter helps protect the privacy rights of individuals and ensures compliance with data protection laws, such as the GDPR. These responsibilities include ensuring the legality of the transfer, providing transparency to data subjects, securing the data, and conducting due diligence on the data importer. Compliance with these obligations is essential for organizations to avoid legal risks and maintain trust with their customers, employees, and regulatory authorities.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.