Data Recipient Agreement

Data Recipient Agreement: What It Is and Why It Matters for Your Business

In today`s digital landscape, the collection and processing of personal data have become essential for businesses. However, with increased data privacy regulations, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), companies must ensure that they are collecting, sharing, and processing data in accordance with these laws.

One way businesses can do this is by implementing a data recipient agreement (DRA). A DRA is a legal document that outlines the terms and conditions under which personal data can be shared between two parties.

What is a Data Recipient Agreement?

A DRA is a contract between two parties, where one party (the data controller) transfers personal data to the other party (the data recipient). The agreement outlines how personal data can be processed, what security measures need to be in place, and any restrictions on how the data can be used.

A DRA is typically drafted by the data controller and is used when sharing personal data with third parties. The agreement helps to ensure that the data recipient understands their responsibilities and obligations when handling personal data and helps to mitigate any risks of data breaches or misuse.

Why is a Data Recipient Agreement Important?

A DRA is important for several reasons. First, it helps to ensure compliance with data protection regulations, such as GDPR and CCPA. Failure to comply with these regulations can result in significant fines and reputational damage.

Second, a DRA helps to reduce the risk of data breaches. By outlining the security measures that must be in place, businesses can ensure that personal data is being handled appropriately and securely.

Third, a DRA helps to build trust between the data controller and the data recipient. By agreeing on the terms and conditions of data sharing, both parties can be confident that they are meeting their obligations and responsibilities.

What Should be Included in a Data Recipient Agreement?

A DRA should include the following:

1. Definition of personal data: This is important to ensure that both parties understand what data is being shared.

2. Purpose of data sharing: This outlines the reasons for sharing personal data and ensures that it is being used for legitimate purposes.

3. Data retention period: This outlines how long the data can be stored and when it should be deleted.

4. Security measures: This outlines the security measures that must be in place to protect personal data, such as encryption, firewalls, and access controls.

5. Subcontracting: This outlines whether the data recipient can subcontract any of the data processing activities to third parties.

6. Data subject rights: This outlines the rights of data subjects, such as the right to access and correct their personal data.

7. Termination: This outlines the conditions under which the agreement can be terminated.


A DRA is an essential document for businesses that collect and process personal data. It helps to ensure compliance with data protection regulations, reduce the risk of data breaches, and build trust between the parties involved. By including the necessary provisions in a DRA, businesses can safeguard personal data and mitigate any potential risks.

This entry was posted in Allgemein. Bookmark the permalink.

Comments are closed.