Definition of Privacy Shield
A framework for regulating transatlantic exchanges of personal data for commercial purposes.
Explanation of Privacy Shield
Privacy Shield is a framework designed to regulate the exchange of personal data between the European Union (EU) and the United States (US), ensuring that data transferred across the Atlantic is adequately protected. Established to replace the Safe Harbor Agreement, Privacy Shield provides a set of principles and commitments that US companies must adhere to when handling EU citizens’ data. These principles include notice, choice, accountability for onward transfer, security, data integrity, and access. The framework aims to bridge the differences in data protection standards between the EU and the US, providing legal certainty for businesses and protecting individuals’ privacy rights. Companies that comply with Privacy Shield principles are required to self-certify annually and are subject to enforcement by the US Department of Commerce and the Federal Trade Commission. Privacy Shield enhances data protection and facilitates international trade by ensuring that personal data is treated with care and respect.