diff --git a/cloudevents/extensions/README.md b/cloudevents/extensions/README.md
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@@ -42,6 +42,7 @@ for more information.
 
 - [Auth Context](authcontext.md)
 - [BAM](bam.md)
+- [Data Classification](data-classification.md)
 - [Dataref (Claim Check Pattern)](dataref.md)
 - [Deprecation](deprecation.md)
 - [Distributed Tracing](distributed-tracing.md)
diff --git a/cloudevents/extensions/data-classification.md b/cloudevents/extensions/data-classification.md
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+# Data Classification Extension
+
+CloudEvents might contain payloads which are subjected to data protection
+regulations like GDPR or HIPAA. For intermediaries and consumers knowing how
+event payloads are classified, which data protection regulation applies and how
+payloads are categorized, enables compliant processing of events.
+
+This extension defines attributes to describe to
+[consumers](../spec.md#consumer) or [intermediaries](../spec.md#intermediary)
+how an event and its payload is classified, category of the payload and any
+applicable data protection regulations.
+
+These attributes are intended for classification at an event and payload level
+and not at a `data` field level. Classification at a field level is best defined
+in the schema specified via the `dataschema` attribute.
+
+## Notational Conventions
+
+As with the main [CloudEvents specification](../spec.md), the key words "MUST",
+"MUST NOT", "REQUIRED", "SHALL", "SHALL NOT", "SHOULD", "SHOULD NOT",
+"RECOMMENDED", "MAY", and "OPTIONAL" in this document are to be interpreted as
+described in [RFC 2119](https://tools.ietf.org/html/rfc2119).
+
+However, the scope of these key words is limited to when this extension is used.
+For example, an attribute being marked as "REQUIRED" does not mean it needs to
+be in all CloudEvents, rather it needs to be included only when this extension
+is being used.
+
+## Attributes
+
+### dataclassification
+
+- Type: `String`
+- Description: Data classification level for the event payload within the
+  context of a `dataregulation`. In situations where `dataregulation` is
+  undefined or the data protection regulation does not define any labels, then
+  RECOMMENDED labels are: `public`, `internal`, `confidential`, or
+  `restricted`.
+- Constraints:
+  - REQUIRED
+
+### dataregulation
+
+- Type: `String`
+- Description: A comma-delimited list of applicable data protection regulations.
+  For example: `GDPR`, `HIPAA`, `PCI-DSS`, `ISO-27001`, `NIST-800-53`, `CCPA`.
+- Constraints:
+  - OPTIONAL
+  - if present, MUST be a non-empty string without internal spaces. Leading and
+    trailing spaces around each entry MUST be ignored.
+
+### datacategory
+
+- Type: `String`
+- Description: Data category of the event payload within the context of a
+  `dataregulation` and `dataclassification`. For GDPR personal data typical  
+  labels are: `non-sensitive`, `standard`, `sensitive`, `special-category`. For
+  US personal data this could be: `sensitive-pii`, `non-sensitive-pii`,
+  `non-pii`. And for personal health information under HIPAA: `phi`.
+- Constraints:
+  - OPTIONAL
+  - if present, MUST be a non-empty string
+
+## Usage
+
+When this extension is used, producers MUST set the value of the
+`dataclassification` attribute. When applicable the `dataregulation` and
+`datacategory` attributes MAY be set to provide additional details on the
+classification context.
+
+When an implementation supports this extension, then intermediaries and
+consumers MUST take these attributes into account and act accordingly to data
+regulations and/or internal policies in processing the event and payload. If
+intermediaries or consumers cannot meet such requirements, they MUST reject or
+ignore the event.
+
+Intermediaries SHOULD NOT modify the `dataclassification`, `dataregulation`, and
+`datacategory` attributes.
+
+## Use cases
+
+Examples where data classification of events can be useful are:
+
+- When an event contains PII or restricted information and therefore processing
+  by intermediaries or consumers need to adhere to certain policies. For example
+  having separate processing pipelines by sensitivity or having logging,
+  auditing and access policies based upon classification.
+- When an event payload is subjected to regulation and therefore retention
+  policies apply. For example, having event retention policies based upon data
+  classification or to enable automated data purging of durable topics.
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diff --git a/cloudevents/languages/he/extensions/data-classification.md b/cloudevents/languages/he/extensions/data-classification.md
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+# Data Classification Extension
+מסמך זה טרם תורגם. בבקשה תשתמשו [בגרסה האנגלית של המסמך](../../../extensions/data-classification.md) לבינתיים.
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diff --git a/cloudevents/languages/zh-CN/extensions/data-classification.md b/cloudevents/languages/zh-CN/extensions/data-classification.md
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+# Data Classification Extension
+
+本文档尚未被翻译，请先阅读英文[原版文档](../../../extensions/data-classification.md) 。
+
+如果您迫切地需要此文档的中文翻译，请[提交一个issue](https://github.com/cloudevents/spec/issues) ，
+我们会尽快安排专人进行翻译。
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