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Data Processor Compliance

Will a Processor be fined for a data breach?

Yes, under the new law, a Processor is directly liable for maintaining security measures and can be fined in the event of an incident.

Do I need a DPA with every client?

Yes, if you process client data (e.g., IT support, accounting), a written Data Processing Agreement is mandatory.

Can I use client data for my own marketing?

No, as a Processor, you are only allowed to process data based on the Controller's instructions. Using it for your own purposes is a violation.

What if the client doesn't provide instructions?

You must request written instructions. Processing data without instructions increases your liability.

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Data Processor Compliance and Legal Obligations

In the modern business ecosystem, many companies act as "Data Processors." These are IT companies, call centers, marketing agencies, accounting firms, and cloud service providers that process data on behalf of a client (the Controller). Georgia's new Law on Personal Data Protection fundamentally changes the rules of the game for Processors. While liability previously rested almost entirely with the Controller, now the Processor is directly liable for violating the law and can be fined independently. Furthermore, Processors are obliged to maintain a record of processing activities, ensure security, and in certain cases, appoint a DPO.

The Data Processor Compliance service is specifically designed for companies offering B2B services and processing others' data. Our lawyers will help you:

  • Status Determination: Clearly distinguishing when you are a "Processor" and when a "Controller" (this status can change within one company for different processes).
  • DPA Review: Preparing Data Processing Agreements to be signed with clients, protecting your interests and clearly defining liability boundaries.
  • Security Implementation: Documenting the technical and organizational measures required by law, which is essential for attracting and retaining clients.
  • Sub-processing Regulation: Creating legal mechanisms to lawfully involve your subcontractors (e.g., hosting providers) in the process.
  • Incident Response Procedures: Developing a specific protocol on how to notify the Controller (client) immediately about an incident.
  • Record of Processing Activities (ROPA): Creating a special registry reflecting on whose instructions, what data, and for how long you process it.

Practical example: An IT company provides server support for a bank. If an IT employee accidentally deletes a database, under the new law, the IT company can be directly fined for failure to maintain security measures. Also, if a marketing agency uses a client's database for its own purposes (e.g., advertising another product), it automatically becomes a "Controller" and bears full liability for illegal processing. Another issue is dealing with international clients—European companies demand GDPR compliance, which our experts can assist with.

The legal basis is Articles 21-22 of the Law of Georgia on Personal Data Protection, which detail the obligations of the Processor. The law prohibits processing data without written instructions from the Controller. Also, the Processor is obliged to assist the Controller in fulfilling data subject rights (e.g., data deletion).

Working with a lawyer increases your competitive advantage. Large clients (banks, foreign companies) choose providers with a tidy compliance system. Our service will help you pass client Due Diligence checks and avoid regulatory fines.

Legal.ge gives you access to data protection experts specializing in the B2B sector. Become a trusted partner for your clients—ensure a high standard of data protection with our help.

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