This clause requires data to be scrambled while traveling between computers over the internet or networks—like sending a locked box instead of an open letter. Without this protection, hackers on the same network can intercept unencrypted data. This is legally critical because data breaches during transmission are treated seriously under GDPR (Articles 5 and 32) and US state laws like California's CCPA; companies can face fines and liability if they fail to protect data in transit. For example, your login password sent unencrypted over public WiFi can be captured by anyone nearby.
Do not accept a contract without this clause—it is non-negotiable for any sensitive data. Specifically require TLS 1.2 or higher (the current encryption standard for internet traffic). If the contract is vague and just says "encryption," push back and demand they specify the exact protocol and minimum version. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause requires data to be scrambled while traveling between computers over the internet or networks—like sending a locked box instead of an open letter.
Why should I care about this clause?
Without this protection, hackers on the same network can intercept unencrypted data.
What are my options?
This is legally critical because data breaches during transmission are treated seriously under GDPR (Articles 5 and 32) and US state laws like California's CCPA; companies can face fines and liability if they fail to protect data in transit.
How does this affect small businesses?
For example, your login password sent unencrypted over public WiFi can be captured by anyone nearby.