Standard Contractual Clauses Template

We are living in a world that is getting more interconnected by the second. Naturally, there is a high demand for transferring data across borders. The transfer of personal data, however, has some serious considerations. One country might handle it differently than another, for example. For businesses operating on a global scale, such cross-border data transfers between service providers, controllers, processors, sub-processors, etc. are very common.

This is where the Standard Contractual Clauses come into the picture.

As per the European Commission’s official website, SCCs are “standardised and pre-approved model data protection clauses that allow controllers and processors to comply with their obligations under EU data protection law.” These clauses are divided into two types—one is for the European Economic Area or EEC (27 European Union member nations plus Norway, Liechtenstein, and Iceland) and another for the data processing between the EEA and other countries.

The new SCCs provide a legal framework to ensure that international data transfers comply with the stringent requirements of data protection regulations, such as the General Data Protection Regulation (GDPR) in the European Union. Agreements involving data transfers can include these clauses, which are legally pre-approved in the EU. This way, any organization can safeguard personal data against unauthorized access and breaches. The objective here is simple—ensure privacy, security, and the protection of customer data across jurisdictions in a streamlined way.

Notably, even though the clauses are pre-approved, you cannot just copy-paste them and consider it done! Depending on your organization’s unique needs, you will need to edit, add, or remove these clauses when drafting the final agreement. And for this, you need a comprehensive template that can be customized to suit your data privacy priorities.

Today, we are going to talk about the SCCs, their importance, the risks of using an inadequate template to draft your own agreement using these clauses, and FreshDox.com’s very own Standard Contractual Clauses Template.

Why Choose the Standard Contractual Clauses?

Is it not preferred to draft your own policies and agreements, such as an end-user license agreement, to protect your data subjects (people who can be identified and have attached information to them)? Well, as it turns out, it is much smoother and more convenient to just rely on the SCCs already drafted by the EU. Any data controller concerned about its data subject rights can simply utilize these clauses for processing activities within the EU or when transacting with a third country outside the EEA.

The SCCs facilitate compliance with international data protection laws. This is crucial for businesses to operate legally and maintain trust with customers and partners. These clauses in your agreements are like a standardized approach to data protection. They offer clear guidelines on the responsibilities of data exports and data importers while telling them about the appropriate safeguards.

This standardization helps in mitigating the risk of data breaches and ensuring that personal data is handled with the utmost care throughout the transfer process. Organizations use these clauses all the time to avoid penalties associated with non-compliance, which can be substantial under regulations like the GDPR. Processing operations following guidelines that are pre-approved make sure that you do not start from scratch when drafting an agreement. There is no scope for missing anything important. Your agreements will be ironclad and include all security measures, provisions, and data protection directives that you need in Europe and beyond.

Risks of Operating Without the New Standard Contractual Clauses

There is a reason why the EU created the SCCs. When the protection measures failed to be sufficient, particularly considering the advanced surveillance practices of the US, the EU realized that much stricter parameters were required to offer the ideal level of data protection. As a result, the SCCs came into being after a proper impact assessment of the practices surrounding the processing of personal data and its retention (the Schrems II ruling).

If you fail to incorporate the SCCs, then you are opening yourself up to the threats that necessitated the creation of these clauses. To do business in the EEA, all data processors and controllers need to follow these guidelines.

Without these clauses, data transfers might not meet the legal requirements of data protection regulations and local laws, especially when sensitive data is involved. This can lead to potential fines and legal action down the line. So, regardless of which country you are transacting with from within the EU, you need the SCCs. This applies to transacting with an EU nation like France, an EEA nation like Norway, a country from the EFTA (European Free Trade Association) like Switzerland, or a country with no current ties with the EU such as the United Kingdom.

Data flow to and from these countries needs to be insured with the SCCs to protect the fundamental rights of your users and customers. The transfer of data between servers has to be done through the SCCs and related guidelines to protect the interests of businesses.

The slight oversight of operating without the SCCs can also jeopardize the privacy and security of personal data, resulting in data breaches that can damage an organization’s reputation and erode customer trust. Furthermore, many partners and stakeholders will demand compliance as a prerequisite for data exchange. In this case, lacking formalized data protection clauses will hinder your business relationships as well.

EU Standard Contractual Clauses: Key Components

Now that we have covered what the SCCs are and why they are so important, it is time to understand what makes a good agreement or contract having these clauses. Here are the essential elements that you should include when drafting any policy or user agreement that concerns itself with data transfer:

• Parties Involved: This section is for the identification of the data exporter and data importer, including legal names and contact information. Include all specifics to make sure everybody understands who they are getting into business with.
• Scope of Data Transfer: Next, you will draft a section with a detailed description of the personal data being transferred. This will include the purpose and context of the transfer.
• Data Protection Safeguards: In this section, the agreement will lay down the specific measures and practices that will be implemented to protect the data during and after transfer.
• Rights of Data Subjects: Agreements incorporating SCCs will also have provisions aimed at ensuring that people whose data is being transferred have access to their data and can exercise their rights under data protection laws.
• Legal Compliance: Here, specify the obligations of both parties to comply with relevant data protection laws and regulations in their respective jurisdictions.
• Liability & Enforcement: The agreement should also include clauses detailing the liability of parties in case of data breaches or non-compliance. Additionally, you should mention the mechanisms for resolving disputes in this section.

Other sections that are also present in these agreements include termination, governing law, amendments, annexes, description of the supervisory authority that carries the capacity of an adequacy decision, and so on.

Introducing FreshDox.com’s Standard Contractual Clauses Template

International data transfers can be complex. There could be ambiguities that can lead to risks or information you simply lack to draft legally sound agreements. We understand that. To help organizations in this, FreshDox.com has a comprehensive Standard Contractual Clauses Template. Developed by legal experts specializing in data protection and privacy laws, our template provides a customizable and comprehensive solution that any organization or business can use to add important, Europe-specific data protection clauses to their international agreements.

Whether you are a company importing data from your US market or exporting customer data you have to a third-party, these clauses are designed to fit your unique needs and the nature of the data being transferred. Unlike boilerplate templates that only cover the basics and might not even be enforceable due to their weakness, our template is designed to offer maximum compatibility regardless of what type of data you are exporting or importing.

A subscription to FreshDox.com means access to our detailed, professionally drafted Standard Contractual Clauses Template as well as a bunch of other legal, professional, and business-related document templates! Now, meeting the specific requirements of your data transfer agreements is easier than ever.

The best part? FreshDox.com comes with a 14-day trial period. Using the trial, new users can look into our Basic and Premium Membership Plans in a risk-free way. Basic Members are allowed to customize and download up to three document templates a month whereas Premium Members enjoy unlimited downloads—ideal for the ongoing needs of businesses engaged in frequent international operations.

With FreshDox.com’s Standard Contractual Clauses Template, you can ensure that your organization’s data transfers are compliant, secure, and aligned with global data protection standards. Sign up today to fortify your data transfer agreements and uphold the highest standards of data privacy with FreshDox.com!