Transferring data from an EU member state to a country outside of the EU is restricted under EU laws; however, companies seeking to engage in such a practice have long been able to take advantage of a “model contract” option. Under this approach, the company transferring the data and the recipient enter into a form agreement, typically referred to as the “model contract.” The terms of the model contract have been revised, and the new version must be used starting May 15. The new version takes into account situations where data will be transferred to a third-party vendor acting on the data recipient’s behalf (referred to as “sub-processors”).

TIP: Companies seeking to transfer data from the EU to the US should keep in mind the model contract option. If using this approach, the new version of the contract must be used beginning May 15.