European Commission Adopts EU-US Privacy Shield as Replacement for EU-US Safe Harbor Framework

What this is about 
On July 12, 2016, the European Commission formally adopted the EU-US Privacy Shield (the “Privacy Shield”) which will provide organizations a mechanism to comply with EU data protection requirements when transferring personal data from the EU to the US. This new privacy framework reflects the requirements set out by the European Court of Justice in its October 2015 landmark decision in Maximillian Schrems vs. Data Protection Commissioner, which declared the EU-US Safe Harbor privacy regime invalid.
Privacy Shield overview: The framework provides a set of robust and enforceable protections for the personal data of EU individuals, as well as transparency regarding the use of such data by participating companies, strong US government oversight, and increased cooperation with EU data protection authorities. For more information, see US Department of Commerce (“DOC”) factsheet and FAQs.
Joining the program: 
The DOC will start accepting self-certifications beginning August 1, 2016. Organizations must identify and register with an independent dispute resolution provider prior to submitting their self-certification.
About self-certification:
The decision to participate in the program is voluntary; however, once an organization publicly commits to comply with the framework’s principles through self-certification, that commitment is enforceable under US law by the relevant authority–either the US Federal Trade Commission or the Department of Transportation. To receive the Privacy Shield’s benefits, an organization must self-certify annually to the DOC that it agrees to adhere to the framework’s requirements, based on the privacy principles that include notice, choice, access, and transfer accountability. See the DOC’s guide for more information about participation and compliance requirements.
Disclaimer: This communication is for general informational purposes only, and does not constitute legal advice. No recipient should act, or refrain from acting, on the basis of any information provided here without advice from a qualified attorney licensed in the applicable jurisdiction.
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