EU-US Data Privacy Framework (DPF) – A Complete Guide
Ever wonder about the EU-US Data Privacy Framework?
A digital thousand marketers have changed the entire set of interactions between businesses and subjects concerning data privacy.
This framework spells significant changes in international regulations for data transfers intended to facilitate secure and compliant data sharing between the European Union (EU) and the United States.
Hence, companies increasingly rely on data-driven approaches; understanding and implementing this framework will be essential for compliance and operational efficiency throughout 2025 and beyond.
This guide offers a comprehensive overview of the DPF, its implications for business, and how to implement the Interactive Advertising Bureau Transparency and Consent Framework in WordPress.
- What is the EU-US Data Privacy Framework (DPF)?
- Why the EU-US DPF Matters for Businesses?
- Overview of the EU-US Data Privacy Framework
- Key Features of the EU-US DPF Program
- Who Can Participate in the EU-US DPF?
- Eligibility Criteria for Businesses
- Steps to Ensure Compliance with the EU-US DPF
- FAQ
- Conclusion
What is the EU-US Data Privacy Framework (DPF)?
The EU-US Data Privacy Framework (DPF) is a regulatory system designed to enable the transfer of personal data from individuals in the European Union (EU) & the European Economic Area (EEA) to organizations in the United States that participate in the program.
The EU adopted the Data Privacy Framework (DPF) on July 10, 2023. It replaced the previous Privacy Shield framework, which the European Court of Justice declared invalid due to concerns about inadequate data protection for EU citizens.
The DPF seeks to ensure that U.S. companies handling EU personal data adhere to the strict EU data protection laws, including the General Data Protection Regulation (GDPR).
It introduces a self-certification process for U.S. businesses, enabling them to showcase their dedication to maintaining privacy standards that align with EU regulations.
DPF also promotes transatlantic trade by enabling lawful & secure data transfers while emphasizing the privacy rights of individuals within the EU.
Why the EU-US DPF Matters for Businesses?
The EU-US Data Privacy Framework matters to businesses operating on the Atlantic side. It sets the legal backdrop for transferring personal data from the European Union to the United States.
Here are the reasons that make the Data Privacy Framework so significant for businesses:
- Compliance with GDPR: Complying with the GDPR allows an entity to show that it has followed the principles of GDPR, thereby decreasing its risk of incurring fines and lawsuits.
- Creating Trust Around Transatlantic Data Transfers: The framework addresses essential concerns by upping the game of privacy protections and reinstating confidence in transatlantic business activities.
- Promotion of International Trade: Data Privacy Framework supports smooth data exchanges, allowing a company to operate uninterrupted and build stronger bonds with its EU partners.
- Ease of Self-Certification for U.S. Companies: It offers an easy self-certification system so that U.S. companies can demonstrate compliance with the EU data protection standards.
- Increases Consumer Confidence: Being a part of the DPF signals to the public that a company is committed to protecting their personal information, boosting their confidence and loyalty to that company.
- Reduces Uncertainty in Legal Situations: The DPF brings exactness for the legal transfer of data and, in turn, shores up uncertainty in handling data, cross-border, and it places the fear of risk elsewhere.
Overview of the EU-US Data Privacy Framework
The DPF specifies particular standards organizations must fulfill to engage with the framework.
It highlights the importance of transparency, accountability, and user rights in the processing of personal data.
By following these principles, companies can enable more efficient data transfers between the EU and the U.S., improving their operational effectiveness.
Data Privacy Principles
The DPF has some essential privacy principles that organizations must follow when handling personal data. These principles are:
Notice
The DPF requires businesses to be transparent about their data collection practices, including the categories of personal data collected and the purposes for which they gather and utilize that data.
Choice
Allows individuals to prevent their data from being shared with third parties or used for purposes other than those for which it was initially collected. This principle also specifies that explicit consent is necessary if specific types of sensitive data are to be used beyond the stated purpose or disclosed to third parties.
Accountability for onward transfer
Organizations that pass personal data to third parties must be responsible for these subsequent transfers and ensure ongoing compliance with relevant guidelines outlined in the data privacy framework.
Security
Entities that collect, maintain, utilize, or distribute personal information must implement suitable measures to protect that data from loss, misuse, and unauthorized access, disclosure, modification, or destruction.
Data integrity and purpose limitation
Organizations must confirm that the personal data they gather is suitable for its intended use and is accurate, complete, and up to date. You must restrict the collection of personal information to what is necessary for processing and cannot keep it longer than required to achieve the original processing purpose.
Access
Individuals possess the right to correct, modify, or erase incorrect information or has been utilized in ways that breach DPF principles.
Recourse, enforcement and liability
The DPF guarantees adequate legal protections, recourse for individuals whose personal information has been misused, and penalties for organizations that do not comply with DPF principles.
Differences Between DPF, Privacy Shield, and Safe Harbor
Feature/Aspect | EU-US Data Privacy Framework | Privacy Shield | Safe Harbor |
Effective Date | July 10, 2023 | August 1, 2016 | November 1, 2000 |
Status | Active | Invalidated on July 16, 2020 | Invalidated on October 6, 2015 |
Self-Certification | Yes | Yes | Yes |
Individual Rights | Stronger rights for EU citizens to seek redress | Established rights but less robust than DPF | Basic rights without strong enforcement mechanisms |
Reason for Invalidation | N/A | Concerns over U.S. surveillance practices | Insufficient protections against U.S. surveillance |
Key Principles | Enhanced privacy protections, individual rights, accountability, and transparency | Stricter requirements for onward transfers and monitoring by U.S. agencies | Basic privacy principles with fewer safeguards |
Data Transfer Mechanism | Allows smooth data transfer without additional safeguards like SCCs or BCRs | Allowed transfers but required additional safeguards due to invalidation risks | Enabled transfers without additional safeguards |
Key Features of the EU-US DPF Program
The EU-US Data Privacy Framework (DPF) incorporates various important elements to improve data protection and streamline personal data transfer between the European Union (EU) and the United States.
The following are some key features that EU-US DPF serves:
- Purpose Limitation: Personal data should only be gathered for defined, legitimate objectives and not processed in a manner that contradicts those objectives.
- Data Minimization: Organizations must ensure that only the essential personal data is collected to achieve the intended goal.
- Data Accuracy: Organizations must take reasonable measures to verify that personal data is accurate, complete, and current.
- Storage Limitation: Personal data should not be kept longer than needed for the purposes for which it was initially collected.
- Transparency: Individuals must be aware of how their data will be utilized, including any third parties with access to it.
- Individual Rights: The framework supports individuals’ rights to view, correct, and erase personal data.
- Accountability: Organizations must prove their adherence to these principles and are responsible for any third-party processors they hire.
Rights and Remedies for Individuals
The DPF emphasizes individuals’ rights concerning their data, providing several significant remedies:
- Access Rights: Individuals can ask to see organizations’ data, allowing them to ensure what information is being processed.
- Correction Rights: Individuals can request corrections to inaccurate or incomplete personal data.
- Deletion Rights: In certain conditions, individuals can request the removal of their data once it is no longer needed for its specified purpose.
- Complaint Mechanism: DPF provides a formal framework for people to complain about potential infringement of their right to privacy, allowing them to enforce violations of their rights.
These building blocks enhance the protection of personal data while allowing smoother data exchange across the Atlantic, ultimately building trust between consumers and businesses in both areas.
Who Can Participate in the EU-US DPF?
The DPF program impacts organizations in the United States seeking to transfer personal data from individuals in the EU, EEA, U.K., Gibraltar, and Switzerland to servers based in the U.S.
The following section outlines additional details regarding who is affected by the three privacy frameworks established by this program.
EU-U.S. DPF
The EU-U.S. DPF Principles became effective on July 10, 2023
It is relevant for transferring personal data from individuals in the EU and EEA to participating organizations in the United States that adhere to data processing practices consistent with EU regulations, specifically the GDPR.
U.K. Extension to the EU-U.S. DPF
The U.K. Extension to the EU-U.S. DPF was implemented on July 17, 2023, and came into effect on October 12 of the same year.
It concerns U.S. entities that aim to transfer personal data of individuals from the U.K. or Gibraltar to U.S.-based servers, allowing these organizations to self-certify their compliance under the DPF.
Swiss-U.S. DPF
The Swiss-U.S. DPF Principles were established on August 14, 2024, and took effect on September 15 of that same year.
It pertains to U.S. entities wishing to transfer personal information from individuals in Switzerland to U.S.-based servers.
To remain part of the DPF, organizations must meet compliance obligations continuously and could face enforcement measures if they do not fulfill the defined principles.
Eligibility Criteria for Businesses
To engage in the EU-US Data Privacy Framework (DPF), businesses are required to fulfill certain eligibility requirements:
- U.S. Organizations: Participation is limited to entities located in the United States that manage personal information from individuals in the EU or EEA.
- Self-Certification: Organizations must self-certify their adherence to DPF principles, proving that they have implemented adequate data protection procedures.
- Subject to U.S. Jurisdiction: Organizations eligible for participation must fall under U.S. legal jurisdiction, particularly laws enforced by the Federal Trade Commission (FTC) or other pertinent authorities.
Steps to Self-Certify Under the Framework
Self-certification under the EU-US DPF includes several important steps:
- Examine Compliance Standards: Organizations need to carefully assess DPF principles and ensure that their data processing activities align with these standards.
- Implement Required Adjustments: Modify policies, processes, or technical measures to meet DPF obligations.
- Submit Self-Certification Application: Fill out and submit a self-certification application through the official channels set by the U.S. Department of Commerce.
- Ensure Ongoing Compliance: After certification, organizations must follow ongoing compliance obligations, such as annual recertification and adherence to DPF principles.
Obligations for Participating Companies
Companies involved in the EU-US DPF have particular responsibilities they need to fulfill:
- Follow DPF Principles: Organizations must adhere to all principles specified in the DPF, including transparency, accountability, and individual rights.
- Ensure User Rights: Organizations must guarantee that individuals can access their rights concerning personal data, which encompass the rights to access, correct, and delete.
- Address Complaints: Companies must establish systems for managing complaints related to the handling of personal data and ensure that they are resolved promptly.
- Perform Regular Audits: Participating companies are expected to conduct frequent audits of their data handling practices to confirm continued compliance with DPF standards.
Steps to Ensure Compliance with the EU-US DPF
To comply with the EU-U.S. Data Privacy Framework (DPF) under the WPLP Compliance Platform, here’s a step-by-step process:
Data Collection Transparency
Make sure your website notifies users of the collected data and its purpose. With WPLP Compliance Platform, you can:
- Create a Privacy Policy: Tailor your privacy policy to comply with the data processing practices under the EU-U.S. DPF, specifying how personal data is being gathered, used, and transferred to U.S. organizations.
- Cookie Consent Banner: Utilize the cookie consent feature to obtain user consent for using cookies and tracking technologies. This makes users fully aware and has provided explicit consent for data processing, as mandated by the EU-U.S. DPF.
User Rights Management
Ensure that users have clear information about their rights under the EU-U.S. DPF, including:
- Right to Access: Users should be able to request access to the personal data you hold about them.
- Right to Correct or Delete Data: Allow users to correct or delete their personal data as part of your compliance efforts.
The WPLP Compliance Platform can help you create a Data Subject Access Request (DSAR) policy for these purposes.
Data Processing Agreements (DPA)
Ensure that any third-party service providers that process personal data on behalf of your website are in compliance with the EU-U.S. DPF. This includes having Data Processing Agreements in place with these service providers.
The WPLP Compliance Platform can assist by generating relevant legal policies (such as a DPA policy or Third-Party Data Sharing Policy) that outline the terms and conditions of your relationships with third-party vendors.
Third-Party Transfers and Safeguards
Ensure that any data transferred from the EU to the U.S. complies with the EU-U.S. DPF. This involves:
- Implementing Safeguards: Use Standard Contractual Clauses (SCCs), or ensure that the U.S. third-party companies are certified under the EU-U.S. Data Privacy Framework.
- Transparency: Make sure your website includes relevant sections in the privacy policy or a dedicated page to disclose the transfer of data to the U.S., including the safeguards in place to protect personal data.
Ongoing Compliance and Monitoring
Compliance with the EU-U.S. DPF requires continuous monitoring and updating of your data processing activities. With WPLP Compliance Platform, you can:
- Regularly update your legal policies to ensure that they remain in line with any changes to the EU-U.S. DPF.
- Track and report on user consent through the platform’s analytics features.
Audit Trails and Documentation
Ensure that you maintain documentation of your compliance efforts, including user consent logs, data processing records, and DPA agreements. The WPLP Compliance Platform can help keep records of user consents and provide audit trails for compliance verification.
Next, we’ll look at installing a plugin from the WPLP Compliance platform to comply with the EU-US DPF framework.
How to Install a CMP Plugin on Your WordPress Site
Establish a connection with the WP Cookie Consent server by signing up for a free account.
After linking your account, you will have complete control over cookie configurations, personalization, geo-targeting, and an advanced dashboard.
Before creating an account, install and enable the WP Cookie Consent plugin via your admin dashboard.
Step 1: Installing WP Cookie Consent Plugin
From your WordPress dashboard, navigate to Plugins > Add New.
Search for WP Cookie Consent in the search bar.
Click on the Install Now button.
After installation, click on Activate to start using the plugin.
Now the WP Cookie Consent plugin is installed and activated!
Step 2: Create an Account with the WP Cookie Consent Plugin
From your admin dashboard, navigate to WP Cookie Consent. This will open up the WP Cookie Consent Dashboard page.
To create a new account, click on New? Create a free account.
A new pop-up will appear, prompting you to create an account. Clicking on this will redirect you to app.Wplegalpages.com.
Sign up by entering your details and click on the Sign-up & Connect button
Click “Connect Site” to link the WP Cookie Consent plugin.
Your account is successfully created.
FAQ
The DPF highlights the importance of transparency through its Notice principle, which mandates that organizations must communicate to users the types of data collected and their intended purpose. It also protects user rights by allowing individuals to:
1. Restrict their data from being shared or utilized beyond its original intent (Choice principle).
2. Correct, alter, or delete any information that is inaccurate or used contrary to the principles (Access principle).
The WPLP Compliance Platform provides tools and features to make your compliance process easier with the EU-U.S. DPF. It enables you to:
1. Create a customized Privacy Policy that complies with DPF standards and explicitly outlines your data collection, usage, and sharing practices.
2. Use a cookie consent banner to gain explicit user permission for cookies and tracking technology usage.
3. Use a Data Subject Access Request (DSAR) policy to manage user rights, ensuring users can view, amend, or erase their data.
4. Created and managed data processing agreements (DPAs) with third-party vendors to ensure their compliance with DPF standards.
5. Maintain audit trails and records of compliance activity, such as user consent records and data processing logs.
1. Go to your WordPress dashboard and navigate to Plugins > Add New.
2. In the search bar, type WP Cookie Consent.
3. Click Install Now next to the plugin.
4. Once installed, click Activate to start using the plugin.
5. After activation, the plugin is ready for configuration!
Conclusion
Including the IAB TCF in WordPress is essential for businesses that want to meet privacy requirements while building user trust.
With knowledge of the basic elements of the framework, using a reliable CMP plugin, and configuring the settings with caution to match IAB TCF guidelines, you can build a transparent and secure experience for your users.
As privacy regulations keep changing, proactive steps are crucial. The EU-US DPF provides a solid framework for cross-border data transfers, and hence, businesses need to conform and implement these standards.
Following the steps in this guide, you can ensure compliance, protect user data, and enhance your reputation in a competitive online environment.
Grab the Cookie Consent Compliance now!