EU-U.S. Data Privacy Framework (DPF)

By SecYork Technology

As data privacy regulations tighten worldwide, the need for secure, lawful international data transfers has become a pressing issue for global businesses. One of the most important recent developments in this space is the EU-U.S. Data Privacy Framework (DPF)—a new transatlantic agreement that replaces the invalidated Privacy Shield program.

If your organization transfers personal data between the European Union and the United States, understanding the DPF is crucial.

Background: Why the DPF Was Created

The Privacy Shield Framework, which previously governed EU–U.S. data transfers, was struck down by the Court of Justice of the European Union (CJEU) in the landmark Schrems II ruling (2020). The court determined that U.S. surveillance laws did not adequately protect the rights of EU citizens and that there was insufficient legal recourse for them.

This left thousands of companies scrambling to find legally sound mechanisms for data transfers.

To fill this gap, the EU-U.S. Data Privacy Framework was developed and finalized in July 2023. It aims to restore trust, enable compliant data flows, and align with the EU's General Data Protection Regulation (GDPR) requirements.

Key Features of the DPF

The DPF introduces several significant safeguards that were missing in the Privacy Shield:

1. Independent Redress Mechanism

A new Data Protection Review Court (DPRC) has been established to give EU citizens the ability to challenge data collection by U.S. intelligence agencies.

2. Stronger U.S. Commitments

The U.S. government has issued Executive Orders limiting surveillance to what is necessary and proportionate, particularly for foreign intelligence purposes.

3. Enforceable Obligations for U.S. Companies

Organizations participating in the DPF must:

• Publicly commit to complying with the DPF Principles.

• Maintain strong data protection and accountability practices.

• Provide clear mechanisms for complaint resolution and enforcement.

4. Annual Reviews

The European Commission and U.S. authorities will conduct annual joint reviews to ensure the framework continues to meet legal and operational standards.

Who Can Participate?

Only U.S.-based companies subject to the jurisdiction of the Federal Trade Commission (FTC) or the Department of Transportation (DOT) can self-certify to the DPF.

Certification is voluntary, but once a company commits, it must adhere to the DPF's principles or face enforcement actions.

Benefits of the DPF for Businesses

• GDPR Compliance: Offers a lawful mechanism for EU-U.S. data transfers.

• Operational Continuity: Avoids disruption in transatlantic digital services.

• Customer Trust: Demonstrates your commitment to data privacy and international standards.

What Does This Mean for Your Business?

If your organization receives, processes, or stores personal data from EU citizens, you must ensure that your data transfer practices are legally compliant.

SecYork Recommends:

1. Evaluate Current Data Transfer Mechanisms: Ensure you are not relying on the invalidated Privacy Shield.

2. Consider DPF Certification: If you're a U.S. entity, it may streamline compliance and enhance customer trust.

3. Update Your Privacy Policy: Reflect DPF participation and cross-border data practices.

4. Train Your Staff: Ensure your teams understand the principles and obligations of the framework.

Final Thoughts from SecYork

The EU-U.S. Data Privacy Framework represents a significant step toward restoring transatlantic data flows—but compliance isn’t automatic. Whether you choose the DPF, Standard Contractual Clauses (SCCs), or another lawful mechanism, it’s vital to review and strengthen your privacy posture regularly.

At SecYork Technology, we help businesses navigate international data protection laws and frameworks. From DPF certification guidance to GDPR compliance audits, our team is here to keep your data transfers secure, legal, and future-ready.

Need help with cross-border data transfers or DPF readiness?Get in touch with SecYork today to schedule your compliance consultation.