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The following is part of Greenberg Traurig’s ongoing series analyzing cross-border data transfers in light of the new Standard Contractual Clauses approved by the European Commission in June of 2021.

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Summary

  • Cross border transfers in the United States don’t need a SCC. Company A is not required under U.S. law or the GDPR to put in place safeguards. Company Y is not required under US law or the GDPR to put in place a safeguard when it transmits (exports) personal data.  While Company Y is not required under U.S. law or the GDPR to put in place a safeguard when it receives personal data from Company Z, as noted in the following bullet point, Company Z is required to put a safeguard in place when it transmits data to Company Y.
  • SCC Module 3. Article 46 of the GDPR requires that a processor that transfers data outside of the EEA to a non-adequate country must utilize a safeguard. The EDPB has confirmed that this requirement applies when an EEA processor (Company Z) sends data to another processor or sub-processor (Company Y).1
  • Subsequent Onward Transfers from Company Y.  Note that if Company Y sends data back to Company A, it is not required to do so using the SCCs. If, however, Company Y were to onward transfer data to another sub-processor in the United States (e.g., Company X), it would be required pursuant to SCC Module 3 Clause 9(b) to ask Company X to agree to the SCCs Module 3.
  • Transfer Impact Assessments. Section 14 of SCC Module 3 requires Company Z and Company Y to conduct a transfer impact assessment (TIA) of United States law to determine whether any party has reason to believe that the laws and practices of the United States that apply to the personal data transferred prevent Company Y from fulfilling its obligations under the SCCs.
  • Law enforcement request policy. Section 15 of SCC Module 3 requires that Company Y take specific steps in the event that it receives a request from a public authority for access to personal data. As a result, Company Y might be expected to implement a written law enforcement request policy.

1 EDPB, Guidelines 05/2021 on the Interplay between the application of Article 3 and the provisions on international transfers as per Chapter V of the GDPR at para. 13.

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Photo of David A. Zetoony David A. Zetoony

David Zetoony, Co-Chair of the firm’s U.S. Data, Privacy and Cybersecurity Practice, focuses on helping businesses navigate data privacy and cyber security laws from a practical standpoint. David has helped hundreds of companies establish and maintain ongoing privacy and security programs, and he

David Zetoony, Co-Chair of the firm’s U.S. Data, Privacy and Cybersecurity Practice, focuses on helping businesses navigate data privacy and cyber security laws from a practical standpoint. David has helped hundreds of companies establish and maintain ongoing privacy and security programs, and he has defended corporate privacy and security practices in investigations initiated by the Federal Trade Commission, and other data privacy and security regulatory agencies around the world, as well as in class action litigation.

Photo of Carsten A. Kociok Carsten A. Kociok

Carsten Kociok is a data privacy expert with a wide-ranging practice representing domestic and international clients on complex legal issues. He advises clients across all industries on a wide variety of complex matters, including international data transfers, data privacy compliance, litigation, cybersecurity and

Carsten Kociok is a data privacy expert with a wide-ranging practice representing domestic and international clients on complex legal issues. He advises clients across all industries on a wide variety of complex matters, including international data transfers, data privacy compliance, litigation, cybersecurity and data breach response. Carsten is a recognized expert on the EU General Data Protection Regulation (GDPR) and other EU and German data privacy laws and a leading specialist in the field of financial technology laws.

Photo of Andrea C. Maciejewski Andrea C. Maciejewski

Andrea C. Maciejewski designs and implements privacy and security programs for clients of all sizes – from Fortune 500s to start ups – and in all sectors, including digital entertainment, marketing, online education, retail, and consumer goods. Andrea helps companies navigate the intricacies

Andrea C. Maciejewski designs and implements privacy and security programs for clients of all sizes – from Fortune 500s to start ups – and in all sectors, including digital entertainment, marketing, online education, retail, and consumer goods. Andrea helps companies navigate the intricacies of multi-jurisdictional compliance programs as well as compliance with sector-specific data privacy and security laws. Andrea offers clients practical legal counsel, striving to understand the underlying business model and provide strategies that manage costs and risks, while attempting to maintain the businesses operations.

Her practice includes international data privacy laws and regulations, including the General Data Protection Regulation (“GDPR”) and China’s Personal Information Protection Law (“PIPL”), as well as U.S. federal and state data privacy laws, such as the Children’s Online Privacy Protection Act (“COPPA”), the Family Educational Rights and Privacy Act (“FERPA”), and the California Consumer Privacy Act (“CCPA”). Some of the specialized documents Andrea drafts include data processing addendums, intracompany agreements, cross-border transfer mechanisms, privacy policies, privacy impact assessments, and data inventories. She has experience in U.S. and multi-national record retention practices, and frequently counsels on updating those practices for compliance with new privacy laws.

Additionally, Andrea provides expert counsel on data concerns unique to video games, eSports, and mobile gaming.