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Why the Controller-Processor Distinction Matters to Privacy

Comprehensive privacy legislation relies on creating strong obligations for all companies that handle consumers’ personal data. Read More >>

Comprehensive privacy legislation relies on creating strong obligations for all companies that handle consumers’ personal data.

One key element of those obligations is distinguishing between the companies that decide how and why a consumer’s personal data is collected and used – controllers – and the companies that process data on behalf of controllers. These companies are known as “processors.”

As a new fact sheet by BSA | The Software Alliance makes clear, this distinction is a bedrock principle of privacy laws worldwide and dates back more than 40 years.

Controllers and Processors: A Longstanding Distinction in Privacy – This document on the history of the controller-processor distinction outlines its roots dating back to at least the 1980 OECD privacy guidelines. It also contains a chart identifying more than a dozen privacy and data protection laws worldwide that reflect this distinction.

The fact sheet builds on other BSA resources focusing on the roles of controllers and processors under privacy and data protection laws worldwide. Other BSA resources include:

The Global Standard: Distinguishing Between Controllers and Processors in Privacy Legislation — Need more detail about controllers and processors? This quick guide helps explain these roles and why the distinction between them is important to protecting consumer privacy.

Consumer Rights to Access, Correct, and Delete Data: A Processor’s Role. This document focuses on what processors can – and cannot – do in helping controllers respond to consumer rights requests. This issue is critical to ensuring consumer rights created by any new privacy law function in practice for personal data held by processors.

The bottom line is that these longstanding and widespread concepts are crucial for comprehensive privacy legislation that protects consumer privacy and instills trust. Privacy laws should cover both controllers and processors, but must distinguish between these roles to effectively protect consumers.

Author:

Kate Goodloe serves as Senior Director, Policy with BSA | The Software Alliance. She works with BSA members to develop and advance policy positions on privacy, as well as artificial intelligence and law enforcement access. Before joining BSA, Goodloe was a senior associate in the Privacy & Cybersecurity practice at Covington & Burling LLP. In that role, she counseled technology companies on a range of privacy and law enforcement access issues and represented companies in privacy-related litigation, as well as in investigations by the Federal Trade Commission and by Congress. She previously served as a Law Clerk for the Honorable J. Frederick Motz of the U.S. District Court for the District of Maryland. Goodloe is a graduate of the University of Missouri School of Journalism and the New York University School of Law. She is based in BSA’s Washington, DC, office.

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