Standard Contractual Clauses 2021 Governing Law
Standard Contractual Clauses 2021: Understanding the Governing Law
As companies continue to expand their global reach, data transfers across borders have become an essential part of business operations. However, with data privacy and protection becoming a critical concern, many countries have implemented strict laws and regulations regarding cross-border data transfers. In such cases, Standard Contractual Clauses (SCCs) can provide a legal framework to protect both data privacy and the interests of the involved parties.
SCCs are pre-approved legal terms that help ensure adequate protection of personal data when transferred from the EU to non-EU countries. They are specifically designed to protect the privacy and security of personal data while facilitating international business transactions. SCCs lay down the contractual provisions that both the data exporter (the EU-based company) and the data importer (the non-EU-based company) must follow to ensure data protection and security.
One of the most significant aspects of SCCs is the governing law, which is essential for determining the rights and obligations of both the data exporter and the data importer. The governing law sets out the legal framework within which the SCCs will operate, outlining the relevant laws and regulations that both parties must adhere to. It is also essential in determining which country`s courts will have jurisdiction over any disputes that may arise between the parties.
When drafting SCCs, parties must ensure that the governing law selected is compatible with the data protection laws in the EU. The governing law should provide an adequate level of data protection, which is essential for ensuring that personal data is protected during the data transfer process. The SCCs should also specify the data protection laws applicable to the data exporter and importer, including any additional requirements that may apply.
It is important to note that the governing law does not affect the rights of the data subjects, who continue to have rights under the EU General Data Protection Regulation (GDPR). The GDPR provides data subjects with various rights, including the right to obtain access to their personal data, rectification, erasure, and objection.
In conclusion, Standard Contractual Clauses (SCCs) are essential for businesses to transfer data across borders while ensuring data protection and security. When drafting SCCs, parties must ensure that the governing law selected is compatible with the data protection laws in the EU and provides an adequate level of protection. By selecting an appropriate governing law, businesses can ensure that they comply with data protection laws and regulations, protect their interests, and build trust with their clients.
