What Is a Data Processing Agreement & Why Do You Need One?

Data processing agreements are legally binding contracts covering the rights of the people involved and laying the groundwork to work around the information or data exchanged between parties. DPA is an agreement specified by the GDPR that needs to be signed between two parties, namely, the data processor and the data controller.

GDPR requires every data processor and controller to sign such an agreement, so businesses can protect sensitive data and information from leaking or being misused. Whether one is an employee, processor, controller, sub-controller, client, or any other stakeholder, everyone has a right to protect their data through a DPA.

DPA stands for Data Processing Agreement, as per GDPR.

When an organization leverages data on EU residents, they need a GDPR data processing agreement whenever they hire a third party or data processor to process that data.