Data Processing Agreement

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Data Processing Agreement

Definition

A data processing agreement (DPA) is a legal contract that specifies how third-party vendors handle CRM data on behalf of a company. DPAs ensure compliance with data protection laws like GDPR and CCPA and outline data storage, access, and security requirements. Businesses working with CRM vendors or cloud storage providers must establish DPAs to protect customer privacy.

Synonyms

Data Usage Agreement

Usage Examples

Before integrating our CRM with an AI analytics tool, we signed a DPA to define security and access protocols.

Historical Background

DPAs gained prominence after GDPR (2018) mandated strict guidelines on third-party data processing and customer privacy protection.
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