Concept · Business and metrics

Data processing agreement

Also called: DPA, data processing addendum, GDPR DPA

A contract that says how a service provider may handle personal data for its customer: what it may do with the data, how it keeps the data secure, which other companies it may pass the data to and what happens to the data when the contract ends. Customers with users in Europe usually ask for one, because the EU's GDPR requires it. Common Paper publishes a free, standard template for this (Data Processing Agreement), built for GDPR.

For example: A European customer will sign only once a US startup also signs a DPA covering the employee records the customer will store in the product.

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This glossary is plain-language orientation, not legal or financial advice. Before you decide on a company structure, a contract, taxes or a fundraising deal, talk with a lawyer or an accountant.

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