A data processing agreement (DPA) is a legal contract between a data controller and a data processor that outlines the terms and conditions for the processing of personal data. It is a necessary component of compliance with data protection regulations such as the EU General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).

The DPA typically defines the scope of the processing activities, the obligations of the data processor, and the rights of the data controller. It includes provisions related to the confidentiality and security of the personal data, as well as requirements for data breaches and notification procedures. The agreement also specifies the conditions for the transfer of data to third parties or to other countries.

In essence, a DPA provides a legal framework for the processing of personal data, ensuring that both parties comply with applicable data protection laws and that the personal data is processed in a secure and responsible manner.