From potential U.S. tariffs and EU counterattacks with taxes on digital services to heated discussions around EU “digital sovereignty, and stopping data flow to the US,” today’s headlines are filled with legal landmines. Adding to the pressure are political uncertainty, shifting legislation, and growing distrust in transferring data to the US and working with American companies.

For retailers, the intersection of tech, trade, and trust has never been more complex. Navigating the legal and commercial risks of international data transfers is now a key challenge.

In our recent webinar, Cecilia Lindström (General Counsel at Voyado) and Anna Eidvall (Partner at MAQS Law Firm) unpacked what would happen if U.S.-based cloud services suddenly became illegal. Here’s what retailers must do to play smart and stay ahead.

Watch the on demand webinar here. 

Privacy pressure: A new norm

The GDPR set a global standard for data protection, but today, privacy is about more than just compliance. Recent surveys show that consumer trust for collection of personal data is at an all time low and younger generations are actively distancing themselves from invasive technology. People are more aware and critical of how their data is being used.

So, what does this mean for retailers?

When it comes to tools, many American-built SaaS platforms (including customer experience platforms, or CXPs) are designed for global use, not for the specific legal landscape of the EU or UK. That means they often fall short when it comes to GDPR, the AI Act, and other regional requirements.

Some platforms might even promote questionable practices like:

• Relying on legitimate interest for cookie tracking (which doesn’t fly under the e-privacy directive)
• Using automatic profiling without a legal basis
• Embedding dark patterns in consent forms
• Failing to offer clear, informed opt-ins
• Using your customer data for their own AI models

And then there’s the U.S. surveillance risk. Even if your data is stored in the EU, laws like the Cloud Act and FISA allow U.S. authorities to access it. On top of that, Schrems II made clear that standard contractual clauses alone aren’t enough to ensure GDPR compliance and must always be compensated with additional security measures, which may be very hard to achieve in reality when using a SaaS service.

To make matters worse, recent political changes have weakened oversight of the current EU–U.S. data transfer framework, the (DPFW), raising the risk that it could collapse again. Procedures and institutions put in place to oversee fundamental rights for European citizens have been dismantled.

So, what’s at stake?

For retailers, both big and small, the consequences are real:

• Audits and investigations
• Fines and sanctions
• Damaged customer trust and badwill
• PR nightmares that stick

And no— “everyone else is doing it” won’t help if regulators come knocking.

”The GDPR does not just require you to comply with the GDPR, it demands that you can prove that you do and how. That means that you have to document your assessments, conclusions and decisions – these are often referred to as abbreviations such as LIA (legitimate interest assessment), PIA (Privacy impact assessment), DPIA (Data Protection Impact Assessment) and DTIA (Data Transfer Impact Assessment)”, says Anna Eidvall (Partner at MAQS Law Firm) in our latest webinar.

Several EU authorities—including those in Norway, the Netherlands, Belgium, and Germany—are actively enforcing GDPR violations tied to U.S.-based tools.

So, what about flipping the script? Instead of treating privacy as a risk, make it a competitive edge. Retailers who excel in privacy can build trust and win loyalty – just look at some big names like Apple and Patagonia who have already proven that privacy sells.

Is it time to rethink your tech stack?

Retailers have had it easy regarding regulations for a long time, but that’s quickly changing. New data protection laws, digital taxes, and regional access rules are making compliance more complex than ever.

It’s no longer just about what’s legal today—it’s about what will still work tomorrow.

That’s why more retailers are choosing EU-based tech providers. It’s not just a legal safety net—it’s a smart, future-ready strategy.

By keeping your data in Europe, you reduce the risk of:

• Sudden price hikes
• Service disruptions
• Legal issues tied to global politics

You also get built-in GDPR compliance (not awkward workarounds), and you’re better equipped for upcoming rules like the AI Act, NIS2, and the Accessibility Act.

Why it matters:

✅ Less legal risk
✅ Simpler data transfers
✅ Fewer regulatory surprises
✅ Tech that truly fits the EU landscape

In short: EU-built tech keeps your business safer, smarter, and future-ready.

How retailers can stay ahead of risk

With data laws constantly evolving and political tensions rising, retailers need to be proactive, not reactive, when it comes to their tech choices. Here’s how to get started:

1. Know What You’re Signing

Some cloud providers—especially large U.S. vendors—include vague terms or hidden clauses that let them raise prices or shift data control with little notice. Before signing anything, read the fine print and ask the tough questions – because you’d like to avoid surprises regarding additional fees or tariffs you may have missed.

2. Have a Plan B

Using the EU–U.S. Data Privacy Framework (DPF) might work for now—but it’s not a guarantee. Earlier frameworks like Safe Harbor and Privacy Shield were also seen as secure … until they weren’t.

Start preparing for the unexpected by:

• Stay informed: Keep a close eye on legal updates and U.S. political developments that could impact data privacy agreements.

• Know your risks: Identify where your biggest vulnerabilities lie. But remember to don’t base your decisions on cost alone—legal and operational risks matter too.

• Review (or create) your data transfer assessments—especially if they pre-date the DPF or were created after the Schrems II ruling.

• Map your data flows: Understand where your data is going, and who has access to it.

• Audit and talk to your vendors: Know exactly where your data goes and who has access to it. Ask how vendors handle third-country transfers and verify their claims. Also, ask if they have an exit plan in case the DPF falls apart.

• Explore better alternatives: Even if the DPF holds, more sustainable, privacy-first solutions may be worth switching to.

One last advice: Document everything. Whether it’s a DPIA, DTIA, or LIA—if it’s not documented, it didn’t happen!

In today’s climate, the best strategy is one that’s proactive, not reactive. Taking these steps now can save you from regulatory trouble, reputational damage, and costly surprises down the road.

Bottom Line: Stay calm. Stay smart.

There’s no need to panic—but waiting it out isn’t a strategy either. Political shifts, like changes to U.S. trade policy or oversight bodies, can impact your risk profile quickly and without warning. That’s why now is the time to assess where you stand, stay informed, and start future-proofing your tech stack.

At Voyado, we’re built in Europe—for European retail. Our platform is designed to support local workflows, meet regional regulations, and serve teams in their own time zone. You’ll find more flexibility, less vendor lock-in, and solutions that truly fit your market.

Compliance isn’t an afterthought—it’s built into everything we do. With GDPR in our DNA, in-house legal expertise, and secure, scalable technology, we help retailers stay ahead of risk while delivering exceptional customer experiences.

If your goal is to become Europe’s most trusted, privacy-first retail brand, we’re here to support you every step of the way.

Do you have questions or want to discuss strategy? Read more here or email us at legal@voyado.com—we’re happy to help.