Certified Information Privacy Professional (CIPP) Practice Questions

The recommended route for facilitating data transfer from EU companies to a U.S.-based startup is through standard contractual clauses. These clauses are legal tools provided by the EU that allow companies to ensure that adequate safeguards are in place for the protection of personal data when it is transferred outside the European Economic Area (EEA). Standard contractual clauses are particularly important because they have been recognized as offering sufficient protection for data by the European Data Protection Board (EDPB). They establish a contractual obligation between the data exporter in the EU and the data importer in the U.S., ensuring that the personal data will be handled in accordance with EU data protection standards. This option remains viable even after the invalidation of the Privacy Shield framework, emphasizing that companies can utilize these clauses to maintain compliance with GDPR requirements for international data transfers. Each party involved must agree to specific terms that define how data will be processed and what rights the data subjects have, thus reinforcing the legal protection of the data being transferred. In contrast, while binding corporate rules and the APEC framework may also address cross-border data transfers, they each have specific applicability and limitations that may not be suitable for all scenarios, particularly for startups or smaller companies.