U.S. Commerce Department publishes FAQs on EU-US Privacy Shield

12. August 2020

The U.S. Commerce Department has released a frequently asked questions page (FAQ) with regards to the EU-US Privacy Shield, following the latest decision of the Court of Justice of the European Union (CJEU) in the Schrems II case.

The FAQ consists of five questions which revolve around the situation after the invalidation of the Privacy Shield by the CJEU, especially the status of companies already certified under the Privacy Shield.

The Commerce Department states in its FAQ that despite the invalidity of the Privacy Shield certification as a GDPR compliant transfer mechanism, the decision of the CJEU does not relieve companies certified under the Privacy Shield from their obligations. On July 21, 2020, the Federal Trade Commission (FTC) stated that they expect controllers to continue to follow the obligations laid out under the Privacy Shield Framework for transfers.

Further, the Commerce Department will continue to administer certification and re-certification under the Privacy Shield despite the new development. The Commerce Department emphasizes that the continued dedication to the Privacy Shield will show the commitment of the parties and the controllers certified under it to the Data Protection cause.

However, the Commerce Department also notes that the costs coming along with a Privacy Shield certification will remain, which could have an effect on the motivation for companies to get self- and re-certified.