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Court of Appeal clarifies data protection claims for non-material damage: A win for claimants - But what are the implications for controllers and processors?
Caroline Sheldon
The EU Data Act is set to reshape the data landscape, and while its full impact will unfold over time, some key provisions are coming into effect this September that SaaS providers need to be aware of now. Specifically, we're talking about the rules around data switching, and how they'll likely require you to update your standard terms and existing customer agreements.
The Data Act aims to create a fairer data market by giving users more control over their data. A core part of this is facilitating switching between data services. This means that, under certain conditions, users will have the right to switch providers and take their data with them. This isn't just about moving files, it's about enabling seamless transitions and preventing vendor lock-in.
For SaaS providers, this has significant implications. Come September, your contracts will need to reflect these new switching rights. Things you should be thinking about now include:
- Data Portability: How will you facilitate the transfer of data to another provider? What formats will you use? How will you ensure data integrity during the transfer? Your contracts need to outline the process clearly.
- Switching Process: What are the steps involved in switching? What notice period is required? Who is responsible for what part of the process? Your terms should detail the switching procedure.
- Costs: Who bears the costs associated with switching? While the Data Act encourages switching, it doesn't necessarily mandate free transfers in all cases. Your contracts should clarify the cost implications.
- Interoperability: While not the sole focus, the Data Act encourages interoperability. Your contracts might need to address how your services interact with other systems to facilitate switching.
Don't wait until the last minute! Review your current standard terms and customer agreements now. Consider consulting with legal counsel to ensure your contracts are compliant with the Data Act's switching provisions. Preparing now will save you headaches down the road and ensure a smooth transition into this new data era. Ignoring these changes could leave you facing legal challenges and damage your customer relationships. Be proactive, be prepared and embrace the opportunities that a fairer data market can bring.
About the Author
Chris is a highly experienced solicitor who leads the Corporate, Commercial and Finance team’s general Commercial & Technology Contracts, Outsourcing & Data legal advisory services.
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