2) Office of the Privacy Commissioner for Personal Data, Hong Kong "Data Protection Principles in the Personal Data (Privacy) Ordinance," 2010, 8, online https://www.pcpd.org.hk/english/publications/files/Perspective_2nd.pdf Show
The United States has a patchwork and ever-changing web of laws governing data privacy. While there’s no comprehensive federal privacy decree, several laws do focus on specific data types or situations regarding privacy. Without a holistic statute, however, it can be unclear what protections are in place for the various types of personal information with which companies. Despite the lack of a comprehensive privacy framework, organizations that process or store data are still responsible for staying up-to-date on the latest regulations to ensure compliance. This guide provides details of the major U.S. privacy laws and shares some recent updates and changes. You can also download this detailed fact sheet for a quick background on U.S. data protection laws. Get the Free Essential Guide to US Data Protection Compliance and RegulationsOnline privacy and security: How is it handled?Unlike other forms of communication, such as physical mail, online privacy and security is more difficult to govern. This can leave individuals vulnerable to an invasion of privacy. Internet security and deceptive advertising: How do they relate?The internet has revolutionized our lives and work, providing unprecedented access to information and communication. However, along with this increased connectivity comes new risks to privacy. Everyone’s lives are now online, leaving behind a digital trail of personal data that unscrupulous businesses or individuals can exploit. Thankfully, data privacy laws govern the collection, use, and disclosure of personal data and set standards for how businesses need to handle sensitive data. The Federal Trade Commission (FTC) is the principal enforcer of these laws in the U.S. In recent years, the FTC has taken several enforcement actions against companies that have misled consumers about their data security and privacy practices. For example, in 2012, the FTC reached a settlement with Google after it accused the company of misrepresenting its privacy policies to users of its service. Under the payment terms, Google agreed to pay a $22.5 million fine and change its privacy practices. More recently, in 2018, the FTC took action against Facebook for deceiving users about their ability to control the visibility of their personal information. Again, under a settlement with the FTC, Facebook agreed to pay a $5 billion fine and make significant changes to its privacy measures. These cases show that the FTC is willing to crack down on companies that violate consumer privacy laws. These examples also set a critical precedent for future internet privacy lawsuits — as people’s lives continue to move online, strong laws must be in place to protect data from exploitation. GDPR vs. CCPA: How do U.S. and EU privacy laws compare?GDPR vs. CCPA: How do they differ?GDPR:
CCPA:
The United States and Europe have the most comprehensive data security and privacy laws; the EU’s General Data Protection Regulation (GDPR) came into effect in 2018, while the California Consumer Privacy Act (CCPA) took effect in 2020. GDPR and CCPA set strict standards for how service providers must handle personal data, including ensuring that data collection is transparent, secure, and obtained with the concerned individual's consent. The standards also provide individuals the right to know what personal data is collected about them and allow them to access it and request its deletion. The main difference between CCPA and GDPR is that GDPR applies to any organization that processes or intends to process EU citizens’ sensitive data, regardless of location. GDPR compliance is mandatory for any organization that processes the personal data of EU citizens, regardless if they're customers or not. There are also no entity revenue or processing threshold requirements for GDPR. CCPA only covers entities that do business in California. This regulation applies to entities satisfying thresholds such as annual revenues above $25 million, any organization that processes personal data of more than 50,000 individuals, and those entities that acquire 50 percent of their revenue from selling data. These requirements mean GDPR has a much broader reach and protection than CCPA. For example, in terms of enforcement, GDPR provides heavy fines for service providers violating its provisions. In contrast, CCPA offers California residents the right to sue businesses for damages if there's a violation of their consumer rights. Finally, GDPR requires companies to appoint a data protection officer, while CCPA has no such requirement. While GDPR and CCPA are strong data protection laws providing individuals with robust rights and protection, GDPR applicability extends beyond U.S. borders, making it one of the most far-reaching data protection structures today. It's crucial for organizations to consult with legal counsel and carefully consider which laws apply to them, ensuring compliance with each applicable requirement. U.S. privacy laws with a vertical focusGenerally speaking, privacy laws fall into two categories: vertical and horizontal. Vertical privacy laws protect medical records or financial data, including details such as an individual's health and financial status. Horizontal privacy laws focus on how organizations use information, regardless of its context. The types of data covered by these laws include fingerprints, retina scans, biometric data, and other personally identifiable information such as names and addresses. U.S. data privacy law timeline1974 U.S. Privacy Act of 1974Rights and restrictions on data held by government agencies 1996 Health Insurance Portability and Accountability Act (HIPAA)Healthcare and heath insurance personal data protection 1999 Gramm-Leach-Bliley Act (GLBA)Protects financial nonpublic personal information (NPI) 2000 Children's Online Privacy Protection Act (COPPA)Protects the personal information of those age 12 and younger While both vertical and horizontal privacy laws play an essential role in protecting individuals' privacy rights, many view vertical policies as more effective because they're better at targeting specific risks. U.S. Privacy Act of 1974The federal government passed the U.S. Privacy Act of 1974 to enhance individual privacy protection. This act established rules and regulations regarding U.S. government agencies' collection, use, and disclosure of personal information. Below are some examples of the guaranteed rights covered by the information privacy rule:
HIPAAEnacted in 1996, the Health Insurance Portability and Accountability Act (HIPAA) is a federal privacy protection law that safeguards individuals’ medical information. HIPAA applies to all entities that handle protected health information (PHI), including healthcare providers, hospitals, and insurance companies. When a company shares PHI with a healthcare provider or covered entity, individuals have the following rights:
COPPACongress enacted the Children's Online Privacy Protection Act (COPPA) in 1998 to protect the online privacy of minors under the age of 13. COPPA applies to any website or online service that collects, uses, or discloses personal information from children. Under COPPA, websites and online services must take the following steps to protect children’s privacy:
GLBAIn 1999, the U.S. government signed the Gramm-Leach-Bliley Act (GLBA). This law protects consumer privacy and applies to any financial institution that collects, uses, or discloses personal information. Financial institutions must take the following steps to protect individuals’ privacy:
New U.S. state data privacy lawsPrivacy laws in the U.S. vary by state — some states have signed laws that provide privacy protections, while others have no rules. Below are some examples of signed and proposed individual state privacy laws: CaliforniaIn 2020, voters in California passed the California Privacy Rights Act (CPRA), an amendment to the CCPA. The CPRA provides additional protection for Californians, such as the right to know what personal data entities are collecting about them and the right to know if businesses are selling their data and to whom. ColoradoThe Colorado Privacy Act is a new law that will take effect on July 1, 2023. This law will require businesses to disclose their data collection and sharing practices to consumers and gives Colorado residents the right to opt out of the sale of their personal data. The law also imposes strict penalties for companies and authorizes the state attorney general to bring enforcement actions. ConnecticutThe Connecticut Personal Data Privacy and Online Monitoring Act covers any business that collects personal information from Connecticut residents. The law provides privacy protection regulations for data controllers and processors and requires them to take reasonable security measures to protect personal data. MarylandThe Maryland Online Consumer Protection Act protects consumers from cybersecurity threats, including data breaches, theft, phishing, and spyware. While this law is similar to other state privacy laws, it’s more comprehensive in certain respects. For instance, Maryland law requires businesses to take reasonable steps to protect consumers' personal information from unauthorized access, use, or disclosure. The law also requires entities to provide consumers with a way to opt out of having their personal information collected, used, or sold. This act applies to all businesses that collect, use, or disclose personal data about Maryland residents, including out-of-state companies that sell goods or services to Maryland locals. MassachusettsThe Massachusetts Data Privacy Law is a set of regulations governing businesses' handling of personal information. The law applies to any organization that holds, uses, or discloses personal data about Massachusetts residents. Some of the law’s provisions state that companies must obtain consumer consent before collecting or using their data. In addition, entities must take necessary steps to secure consumer data. The state law also establishes that companies must disclose how they use consumer data and allow customers to opt out of specific uses. Finally, organizations must ensure that the data they collect is accurate and up-to-date. New YorkThe New York Privacy Act is one of the most comprehensive pieces of privacy and security legislation in the U.S. This law sets strict rules about how businesses must handle consumers’ personal information and gives individuals new rights concerning data. The act significantly impacts companies operating in New York state and helps ensure all residents control their personal information. Some key provisions of the privacy law include:
VirginiaThe Virginia Consumer Data Protection Act is a new law that’ll take effect on January 1, 2023. It will require businesses to take reasonable steps to protect consumer data privacy, confidentiality, and integrity. This new law applies to any business that collects, uses, or discloses the personal information of 100,000 or more Virginia consumers or derives 50 percent or more of its revenue from the sale of consumer data. The law also gives Virginia residents the right to access their personal data and request correction if it’s inaccurate. U.S. state privacy law comparisonThere are some significant distinctions between each state’s laws. For instance, California, New York, and Massachusetts laws cover any company that does business in the state, regardless of whether they have an office located there. In comparison, Maryland's law only applies to entities with a physical presence in the state. Also, California and Maryland privacy laws apply to businesses with more than $25 million in annual revenue, while the others have no such limitations. Which privacy requirements apply to me?Although the state and federal privacy law ecosystem may seem daunting, there are straightforward ways to determine which regulatory requirements apply to you and your business. Consider your business:
Using these key factors, honing in on which privacy requirements apply to your organization can be a relatively straightforward endeavor. Data privacy FAQBelow are frequently asked questions about data privacy laws. Q: How do privacy laws in the U.S. differ from those in Europe?A: The most significant difference is that the U.S. doesn't have a single, comprehensive federal privacy law like the EU's GDPR. Instead, the U.S. has a patchwork of federal and state laws that offer varying levels of protection for consumers' personal data. Q: What are the main points of U.S. federal and state privacy laws?A: Most U.S. privacy laws share a few main provisions, such as obtaining consumer consent before collecting or using personal data and the need to take data security steps. However, there are some crucial differences between the laws, so it’s essential to check the specific requirements of each decree to ensure compliance. Q: What are the consequences of violating U.S. privacy laws?A: The consequences of violating U.S. privacy laws can vary depending on the law. In some cases, entities may be subject to fines or other penalties. In other cases, consumers may have the right to sue the company for damages. The future of data privacy lawsAs more private and sensitive data digitally changes hands each year, it becomes increasingly critical to understand the laws protecting our privacy. In the United States, internet privacy laws are still evolving, but they are a strong start toward protecting personal data. Citizens and residents can expect more states to pass comprehensive privacy laws in the future, and the federal government may eventually pass a law that provides nationwide protection for consumers’ data. In the meantime, staying informed about the latest security controls and data privacy developments is essential in taking steps to protect your personal information. Deploying data loss prevention and threat detection solutions can also help you keep your data safe and ensure compliance with privacy laws. We're Varonis. We've been keeping the world's most valuable data out of enemy hands since 2005 with our market-leading data security platform. David HarringtonDavid is a professional writer and thought leadership consultant for enterprise technology brands, startups and venture capital firms. Which of the following are core rights of consumers?Kennedy outlined what he called the Consumer Bill of Rights. The bill stated that every person has four basic consumer rights—the right to be informed, the right to choose, the right to safety, and the right to be heard.
When businesses adopt voluntary policies for protecting the privacy of individuals?When businesses adopt voluntary policies for protecting the privacy of individuals' information disclosed during electronic transactions, this is an example of: Industry self-regulation.
Which part of the Department of Justice protects the public from being charged excess fees based on one's race quizlet?Which part of the Department of Justice protects the public from being charged excess fees based on one's race? Civil Rights Division. The act that requires lenders to inform borrowers of the annual rate of interest to be charged, plus related fees and services charges is called: The Truth in Lending Act.
Which US agency enforces the laws prohibiting deceptive advertising?The FTC enforces these truth-in-advertising laws, and it applies the same standards no matter where an ad appears – in newspapers and magazines, online, in the mail, or on billboards or buses.
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