Companies Welcome DOJ Reprieve in Data-Transfer Rule Enforcement

The Department of Justice’s steps to delay active enforcement and clarify implementation of its bulk data transfer rule brought a sigh of relief to US businesses whose compliance approach was in limbo amid the transition to the Trump administration.

The agency released its initial guidance for how to comply with its final rule restricting US companies’ transfers of certain types of data to countries that pose national security concerns including China, Cuba, North Korea, Russia, Iran, and Venezuela, on April 11—a few days after the rule went into effect.

The rule—which implemented Biden-era Executive Order 14117—establishes export controls ...