Useful Article: UK – Liability Limits for GDPR in Commercial Contracts – the Law and Recent Trend

Published by Alisha McKerron on 5 March 2019

In her article (listed in the Menu of this blog) entitled GDPR is Coming: 7 Steps Processors Need to Take to be Compliant (12 December 2017), Alisha sets out mandatory provisions (concerning data processors), which must be inserted in data processing agreements (art. 28 GDPR). Consequences of contractual breaches or non compliance with GDPR are not discussed in any detail.

This important topic is discussed in DLA Piper’s article (7 February 2019) UK: Liability Limits for GDPR in Commercial Contracts – the Law and Recent Trends which looks at how to allocate the risk and liability when negotiating commercial contracts. It considers:

  • Obligations- the source of liability;
  • Types of liability;
  • Limits  of liability.

It concludes that:

“Limiting financial liability under GDPR has been made much more complex than under the Data Protection Act 1998, both because the nature of the obligations placed on both parties has changed and because the consequences of breaches are much more serious. Parties looking to limit their exposure should be realistic and not assume that it will be either possible or desirable to simply pass liability to the other party under the contract in all circumstances, instead, they will need to take a more balanced approach to liability, based on the terms of GDPR and who has caused the loss in question to arise.”