The International Centre for Dispute Resolution (ICDR), the international division of the American Arbitration Association (AAA), has been selected by the U.S. Department of Commerce to manage the Privacy Shield Annex I Arbitration Mechanism and Arbitral Fund. This is the website and information for the Annex I Binding Arbitration Mechanism. The ICDR’s primary functions in this regard are to administer arbitrations that may arise under Annex I, and to establish and manage an Arbitral Fund to cover the arbitral costs.

EU individuals: for more information on how to file an Annex I Binding Arbitration, click HERE.

Organizations: to go directly to the Arbitral Fund contribution/fee page, click HERE

Background

The EU-U.S. Privacy Shield Framework was designed by the U.S. Department of Commerce and the European Commission to provide companies on both sides of the Atlantic with a mechanism to comply with data protection requirements when transferring personal data from the European Union to the United States in support of transatlantic commerce. The full details of the program can be found on the Department of Commerce’s website at https://www.privacyshield.gov/welcome.

The Privacy Shield Framework provides the option for an EU individual to invoke binding arbitration to determine whether a Privacy Shield organization has violated its obligations under the Privacy Shield Principles as to that individual and whether any such violation remains fully or partially unremedied ("residual claims"). Organizations voluntarily self-certify to the Privacy Shield Principles and, upon certification, the commitments become legally enforceable under U.S. law. Organizations that self-certify to the Privacy Shield Framework are required to arbitrate claims pursuant to the Recourse, Enforcement and Liability Principle.

In Annex I, the Department of Commerce committed to facilitating the establishment of a fund into which Privacy Shield organizations will be required to pay contributions to cover the arbitral cost, including arbitrator fees, up to maximum amounts, in consultation with the European Commission. The purpose of the fund is solely to provide Privacy Shield organizations with a consolidated mechanism to fund arbitrations. The fund will be managed by ICDR-AAA.

As the Arbitral Administrator and Fund Manager, ICDR-AAA will facilitate the collection and administration of contributions from Privacy Shield participants. The required contributions are based on organizations’ annual revenue, using revenue bands that mirror those used to determine Privacy Shield administration fees collected by the Department of Commerce’s International Trade Administration (ITA).

The fee structure for the arbitral fund is available HERE. ICDR-AAA expects these initial fees to provide sufficient revenue for the fund to operate for several years, based on expected case filings and projected administrative and program management expenses. ICDR-AAA shall periodically review any need to adjust the fee structure, and the Department of Commerce and the European Commission will review the operation of the fund during the annual review of the Privacy Shield.

Organizations self-certifying to the EU-U.S. Privacy Shield for the first time on or after
September 12, 2017 will be required to pay this fee to ICDR-AAA before ITA will finalize their certification. ICDR-AAA will begin collecting this fee from existing participants in the
EU-U.S. Privacy Shield program on October 3, 2017 and existing participants will be required to pay the fee within 30 days. The ICDR-AAA will provide the Department of Commerce with information on an ongoing basis regarding the status of contributions made by Privacy Shield participants into the arbitral fund. 

Additional Information

For EU Individuals: Click for Information on Filing An Annex I Arbitration
Privacy Shield Arbitral Fund Contributions

Privacy Shield Annex I Binding Arbitration Rules
Privacy Shield Annex I Code of Conduct

About the ICDR
The International Centre for Dispute Resolution (ICDR), is the international division of the American Arbitration Association (AAA) and provides Privacy Shield Annex I services pursuant to EU-U.S. Privacy Shield program. The global leader in conflict management since 1926, the AAA is a not-for-profit, public service organization committed to the resolution of disputes through the use of arbitration, mediation, conciliation, negotiation and other conflict management procedures.

The ICDR provides a full range of conflict management services to businesses, government agencies, and other organizations around the world. These services are supported by a network of cooperative agreements with other arbitration institutions and key alliances located around the globe, which enable the ICDR to provide its international arbitration services.

CLICK HERE TO FILE ONLINE! 

For questions regarding the ICDR Annex I mechanism, please contact Luis Martinez at MartinezL@adr.org or call +1.212.716.5833.
For questions regarding fees or payments, please contact Alyssa Montano at MontanoA@adr.org or +1.212.484.3281.