Legal Term

SaaS GDPR Compliance Data Processing Addendum

Legal Definition

A Data Processing Addendum (DPA) is a legally binding agreement mandated by Article 28 of the General Data Protection Regulation (GDPR) that delineates the obligations of a data processor (e.g., a SaaS provider) when processing personal data on behalf of a data controller (e.g., a small business). It specifies processing instructions, security measures, assistance with data subject rights, breach notification, and cross-border data transfer mechanisms, ensuring GDPR compliance in SaaS relationships.

In Plain English

It's a rulebook signed between a software service company and a small business to agree on how to handle customer data under EU privacy laws, setting clear duties to protect personal information and avoid legal trouble.

Example in a Contract
The Processor shall: (i) only process personal data on documented instructions from the Controller, unless required by EU law; (ii) ensure all personnel with data access are bound by confidentiality; (iii) implement encryption, access controls, and regular security audits; (iv) notify the Controller of any data breach within 72 hours; and (v) cooperate with the Controller to fulfill data subject access requests, at no additional cost.

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