The EU’s Data Transfer “Privacy Shield”—Full Body Armor or a Candle in the Wind?

With the August 1st start of the Privacy Shield, the European Commission’s new and long-awaited transatlantic data transfer agreement with the U.S., businesses that had previously relied on the invalidated Safe Harbor scheme now have a similar option available again. U.S. companies subject to Federal Trade Commission or Department of Transportation jurisdiction can begin to self-certify with the U.S. Department of Commerce that they comply with the Privacy Shield’s data privacy and security requirements, thus enabling them to transfer EU citizen data to the United States lawfully. However, looming legal challenges and an annual review of the Privacy Shield may well undermine the value of the program as a long term compliance solution.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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