In the era of technology and data services contracts, businesses across the board dedicate more time and attention toward privacy controls. This shift comes in the wake of the rise of the comprehensive U.S. state privacy laws and the array of stipulations for sharing data with vendors and third parties. BakerHostetler illustrates this in their recently published research.
Exploring the complexities of privacy laws and consumer protection, the group probes into the Data Processing Addendums (DPAs). The document triggers heightened interest due to indemnities, limitations of liability and the tangible costs of a data breach.
The case for IT contracts is more important than ever as these lay the foundation for the way data must be handled and protected. The contracts should contain precise clauses that clearly outline privacy and security controls, to ensure vendors and third parties also commit to maintaining data integrity. Within IT contracts, the Data Processing Addendums are emerging as the canvas to lay out standards and processes surrounding data protection.
Broadly, DPAs offer a clear framework for handling data, outlining roles, responsibilities and necessary security measures to mitigate risk. They also specify indemnities, piecing together an important aspect of drawing clear lines around data breach liabilities. With an efficient DPA, businesses can be reasonably assured that they are protected regardless of the circumstance.
Considering the recent regulatory changes and the repercussion of cyber-attacks, paying heed to the route of data protection is not just an option, it is a necessity. By understanding the legal intricacies surrounding data protection, companies are better equipped to negotiate contracts, manage the privacy of their data, and grasp how much is at stake in the case of a data breach.