Vercel AI · Vercel AI SDK Privacy · View original document ↗

Dual Role: Data Controller and Data Processor

High severity High confidence Explicitdocumentlanguage Rare · 1 of 325 platforms
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Document Record

What it is

When you build and run your own apps using Vercel, Vercel acts as a processor of your users' data, not the controller, meaning you as the developer are responsible for your users' privacy rights in that context.

This analysis describes what Vercel AI's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

Developers deploying applications on Vercel need to understand that they, not Vercel, are legally responsible for their end users' data under GDPR and similar laws, and they must have their own privacy notices and legal bases for processing.

Consumer impact (what this means for users)

End users of applications hosted on Vercel should know their privacy rights in that context are determined by the developer who built the application, not by Vercel's privacy policy, meaning Vercel's policy does not directly protect them in that scenario.

How other platforms handle this

Egnyte Medium

Egnyte is a data controller with respect to personal data it collects from visitors to its website and through its marketing activities. Egnyte acts as a data processor with respect to the content and data that customers store within the Egnyte platform. In that capacity, Egnyte processes data on be...

Workday Medium

At Workday, we believe privacy is a fundamental right, regardless of where you live. When you connect with Workday, we understand you are trusting us to handle your personal information appropriately. That is why we are committed to transparency about how we collect, use, and share that information.

Auth0 Medium

When Okta provides its products and services to its customers (e.g., organizations that use Okta to manage their workforce or Auth0 to manage their customer identity), Okta processes personal data on behalf of those customers as a data processor. In those cases, the customer is the data controller a...

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▸ View Original Clause Language DOCUMENT RECORD
"
When you use our Services to build and run your own applications, we act as a data processor on your behalf with respect to any personal information you collect and process using our Services. In these circumstances, you are the data controller.

— Excerpt from Vercel AI's Vercel AI SDK Privacy

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

(1) REGULATORY LANDSCAPE: This provision directly engages GDPR Article 4(7) and Article 4(8) definitions of controller and processor, and Article 28 requirements for data processing agreements between controllers and processors. Under CCPA/CPRA, an analogous service provider relationship may apply. Enforcement of these obligations falls on EU supervisory authorities and the California Privacy Protection Agency respectively. (2) GOVERNANCE EXPOSURE: High. The controller/processor distinction is foundational to GDPR compliance architecture. Vercel's assertion that customers are controllers for their deployed applications creates significant downstream compliance obligations for those customers, including maintaining valid legal bases for processing, honoring data subject rights, and ensuring Vercel's subprocessor arrangements are compatible with their own DPAs. (3) JURISDICTION FLAGS: EU/EEA creates the highest exposure given the mandatory DPA requirement under GDPR Article 28 for all controller-processor relationships. UK GDPR carries equivalent requirements. Customers operating in multiple jurisdictions may face layered obligations depending on where their end users are located. (4) CONTRACT AND VENDOR IMPLICATIONS: Enterprise procurement teams must execute a separate Data Processing Agreement with Vercel before processing personal data of EU/EEA or UK residents through Vercel's platform. The standard privacy policy does not substitute for a GDPR-compliant DPA. Customers should review Vercel's subprocessor list as part of vendor due diligence and ensure they have appropriate contractual protections for onward transfers. (5) COMPLIANCE CONSIDERATIONS: Legal teams should confirm that a current DPA with Vercel is in place and covers all relevant data categories and processing activities. Data mapping exercises should clearly document Vercel as a processor for application data and as a controller for platform account data, with different legal obligations applying to each. Any customers in regulated sectors such as healthcare or financial services should assess whether deploying workloads on Vercel creates sector-specific compliance gaps.

Full compliance analysis

Regulatory citations, enforcement risk, and due diligence action items.

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Applicable agencies

  • FTC
    The FTC may have jurisdiction where a developer's failure to maintain adequate data processing agreements with Vercel results in unfair or deceptive privacy practices affecting US consumers.
    File a complaint →

Applicable regulations

Colorado AI Act
US-CO
EU AI Act - High Risk Provisions
EU

Provision details

Document information
Document
Vercel AI SDK Privacy
Entity
Vercel AI
Document last updated
May 12, 2026
Tracking information
First tracked
May 8, 2026
Last verified
May 10, 2026
Record ID
CA-P-008977
Document ID
CA-D-00548
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
b1d2dff022f60b8295c54f46539cf51b85afa976a386ba9d7131838ae80fc81c
Analysis generated
May 8, 2026 01:04 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Vercel AI
Document: Vercel AI SDK Privacy
Record ID: CA-P-008977
Captured: 2026-05-08 01:04:59 UTC
SHA-256: b1d2dff022f60b82…
URL: https://conductatlas.com/platform/vercel-ai/vercel-ai-sdk-privacy/dual-role-data-controller-and-data-processor/
Accessed: May 13, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
High
Categories

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Frequently Asked Questions

What does Vercel AI's Dual Role: Data Controller and Data Processor clause do?

Developers deploying applications on Vercel need to understand that they, not Vercel, are legally responsible for their end users' data under GDPR and similar laws, and they must have their own privacy notices and legal bases for processing.

How does this clause affect you?

End users of applications hosted on Vercel should know their privacy rights in that context are determined by the developer who built the application, not by Vercel's privacy policy, meaning Vercel's policy does not directly protect them in that scenario.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 1 platforms. See the full comparison.

Is ConductAtlas affiliated with Vercel AI?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Vercel AI.