Contributions For Binding Arbitration Mechanisim Under DPF Program

The U.S. Department of Commerce’s International Trade Administration (ITA) has implemented a cost recovery program to support the operation of the Data Privacy Framework (DPF) Program, which requires that U.S. organizations pay an annual fee to the ITA in order to participate in the DPF program.  The cost recovery program supports the administration and supervision of the DPF program and supports the provision of DPF program-related services, including education and outreach.  Organizations have additional, direct costs associated with participating in the DPF program, such as the arbitral fund contribution described below:

As described respectively in Annex I of the EU-U.S. DPF Principles, the Letter from the U.S. Department of Commerce’s International Trade Administration regarding the UK Extension to the EU-U.S. DPF, and Annex I of the Swiss-U.S. DPF Principles, an EU, UK, or Swiss individual has the option to invoke binding arbitration to determine whether a participating organization has violated its obligations under the DPF Principles as to that individual and whether any such violation remains fully or partially unremedied (“residual claims”).  In Annex I of the DPF Principles, the U.S. Department of Commerce committed to the maintenance of a fund to which participating organizations will be required to contribute to cover the arbitral costs, including arbitrator fees, up to maximum amounts.  The International Centre for Dispute Resolution-American Arbitration Association (ICDR-AAA) was selected by the U.S. Department of Commerce to administer arbitrations pursuant to and manage the arbitral fund identified in Annex I of the DPF Principles.  Please visit ICDR-AAA’s website at: http://go.adr.org/privacyshieldfund.html to make the required contribution.

Annual Revenue
$0 – $5 million
Over $5 million to $25 million
Over $25 million to $500 million
Over $500 million to $5 billion
Over $5 billion

Required Contribution
$250
$500
$1000
$5000
$10,000