2 - Term of Processing

The Processor shall process Personal Data on behalf of the Controller for the duration of this Agreement and in compliance with applicable U.S. data privacy laws and regulations.

Explanation of the Term of Processing Clause (U.S. Legal Standards)

• This clause applies to contracts where one party (the Processor) processes personal data on behalf of another party (the Controller).

• The Processor is the entity handling personal data as instructed by the Controller.

• Personal Data refers to any information that can identify an individual, such as names, contact details, or other personally identifiable information (PII).

• The clause states that the Processor may only process personal data for the Controller during the term of the contract.

• This clause defines the permitted timeframe for data processing—limiting it to the duration of the contract.

• The Processor is prohibited from processing personal data before or after the contract term unless specifically authorized in writing by the Controller.

• The purpose of this restriction is to ensure data protection and compliance with applicable U.S. privacy laws, such as the California Consumer Privacy Act (CCPA) or sector-specific regulations like the Health Insurance Portability and Accountability Act (HIPAA), if applicable.

Key Takeaways:

• The Processor can only process personal data for the Controller during the contract’s duration.

• Processing before or after the contract term is not allowed unless separately authorized.

• This ensures compliance with U.S. data privacy laws and limits unauthorized use of personal data.

This explanation aligns with U.S. legal standards by clarifying the scope of data processing and ensuring compliance with relevant privacy laws.