Desk notes · US commercial contracts · Position of the week

Position of the week: sub-processor notice, thirty days

US customers with EU data ask for prior approval of every sub-processor. Vendors offer a list and a promise to update it. The workable middle is a notice period with a right to object, and the number we hold is thirty days.

Every SaaS product runs on other people’s services: cloud infrastructure, email, analytics, support tools. Each is a sub-processor under the GDPR, and the regulation requires the customer’s authorisation before one is engaged. Specific approval of each addition is what customers ask for. It is also unworkable: a vendor with two hundred customers cannot seek two hundred consents to change its logging provider.

The position

General authorisation for the sub-processors on a published list. Thirty days’ written notice — an email to a nominated address, or a subscription to the list page — before any addition. A right to object on reasonable, data-protection-related grounds. If the objection cannot be resolved, the customer may terminate the affected services without penalty.

Why thirty

Fourteen days is what vendors open with; it is not enough for a customer’s privacy team to assess a new provider. Sixty is what customers open with; it means a vendor cannot respond to an outage by switching providers for two months. Thirty is long enough to evaluate and short enough to operate, and it is where the large majority of negotiated DPAs land.

Where we move

For regulated customers, a longer period for sub-processors that will hold special-category data, and sometimes a short list of named providers that require specific approval. Never to specific approval for everything. That is a promise the vendor will break in the first quarter.

General information, not legal advice. This page describes how US and cross-border commercial contracts commonly work; it is not advice on your situation and does not create an attorney–client relationship. For advice on a specific contract, speak to a lawyer qualified in the relevant jurisdiction.

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