CCPA vs GDPR: What GDPR-Ready Companies Need to Know about the CCPA. The “Arkansas Personal Information Protection Act” requires businesses to notify consumers “in a timely manner” that their data has been compromised. Much the same is true with data privacy laws. In 2005, North Carolina took a stance to protect its residents and their PII by enacting the Identity Theft Protection Act (ITPA). Data privacy laws are not particularly new: HIPAA (protecting our personal health information) turned 23 years old this year, the GLBA (protecting our financial data) turns 20, PCI DSS (covering credit card data) turns 15. Several states (see above) have privacy laws working their way through the legislatures. It doesn’t have a specific deadline for breach notifications (using unclear, “as soon a reasonably possible” language). A comprehensive assessment of all laws applicable to breaches of information other than PII. In February of that year, ChoicePoint (a financial data collector) disclosed it had erroneously sold the data of 145,000 people to a criminal organization. Companies have 45 days maximum to notify affected individuals once the breach has been discovered. Navigate these laws more easily by using a privacy policy sample template to create your policy. 1. The law allows for no discrimination against consumers who exercise their rights; consumers must be given the same quality of service even if they object to a particular activity, such as the sale of their data. The right of access to personal information collected or shared – The right for a consumer to access from a business/data controller the information or categories of information collected about a consumer, the information or categories of information shared with third parties, or the specific third parties or categories of third parties to which the information was shared; or, some combination of … If you are doing business online (and therefore likely in all 50 states), your company should become adept at managing its data according to the laws of states where the regulations are most stringent,regardless of your physical location. For the time being, though, expect to keep seeing states taking matters into their own hands, and crafting bills tailored to their own constituents and needs. This is a great big list of data privacy laws by state created. In NSW, Victoria and the Australian Capital Territory (ACT) private sector health service providers must comply with both Australian and state or territory privacy laws when handling health information. Substitute notification methods are also acceptable if the previously listed ones will cost a business in excess of $5,000 to perform — an example being to notify members of the stateside media (newspapers, tv, etc.). The 4 Main Areas of Data Oversight Notice/transparency requirements — An obligation placed on a business to provide notice to consumers about certain data practices, privacy operations, and/or privacy programs. The law requires that every state agency appoint a “responsible authority” who will establish procedures to insure that data requests are “received and complied with in an appropriate and prompt manner.” If a government entity wants to collect an individual’s private or confidential data, the entity must give that individual a privacy notice called a “Tennessen Warning”. Consider reading more into the details on California’s major (and severe) privacy laws like the recently passed CCPA and the children-privacy-targeted COPPA, because Californian consumers are likely landing on your site (which would make these laws apply to your business). Penalties for violations: Each intentional violation of the law can incur a civil penalty of up to US$5,000, plus “reasonable costs of investigation and litigation of such violation, including reasonable attorneys’ fees.”, Official name: Minnesota Government Data Practices Act (Minn. Stat. Titled “The Alabama Breach Notification Act”, this piece of legislation applies to both businesses and the third party services they employ. The rules governing notifications include informing the victim what happened, what information was involved, and what the entity is doing about it. 28 different statutes protecting data privacy in the private, public, and health sectors Ryan specializes in evangelizing cybersecurity and promoting the importance of visibility into IT changes and data access. Washington is also preparing a privacy checklist tool in response to recent political movement around the world regarding data privacy. is mentioned in their legislation. Thanks for downloading our free template! It allows individuals to access records about themselves, learn whether those records have been disclosed, and request corrections or amendments to those records, unless the records are legally exempt. Privacy Act of 1974 — Protects personal information maintained by federal agencies 2. By way of example, the Driver’s Privacy Protection Act of 1994 (DPPA) (18 U.S. Code § 2721 et seq.) Massachusetts’s newest data protection law (boisterously titled the “Standards for the Protection of Personal Information of Residents of the Commonwealth”), demands businesses take measures to protect the security of their customer’s data, as well as mitigate breaches. Provisions: The NYPA is very similar to the CCPA: It would empower individuals to inquire about what data a business has collected on them and whom they have shared it with, request that the business correct or delete the data, and opt out of having their data shared with or sold to third parties. California’s specified privacy laws are considered by many as the most stringent in the US, covering consumer data, children’s online privacy, e-reader privacy, do not track, and websites and online services. Some states are more rigorous than others when it comes to keeping their citizen’s data safe. Provisions: This California law governs the collection, sale and disclosure of the personal information of California residents. Penalties for violations: The law gives companies 30 days to “cure” violations. Official name: California Consumer Privacy Act (CCPA). If the breach affected over 1,000 users, consumer reporting agencies must be contacted immediately (48 hours maximum to comply). Alaska’s “Personal Information Protection Act” became the law of the land on July 1st, 2009. Europe’s General Data Protection Regulation (GDPR) has already begun to change the data collection practices of ecommerce businesses across the western world. Not to mention, no two rulesets are exactly alike. Going into effect on January 1st of 2019, this act is the first state-level legislation passed anywhere in the US that demands insurance companies adopt stronger cybersecurity measures, and gives suggestions how to do so. When a business receives an inquiry about the information collected and stored about an individual, it must verify that the person making the request is actually who they claim to be before responding. In the absence of comprehensive federal legislation regulating data privacy, the U.S. is governed by sector-specific and state-specific laws that control the sharing of particular types of personal data. Here is an up-to-date interactive map highlighting privacy bills from across the country. Every state … This was enacted in large part due to the recent Equifax scandal, and aims to protect Vermont residents from being taken advantage of by a similarly negligent company in the future. This is an issue that will only grow in importance as internet-of-things devices continue to take over our homes and our lives in the coming years. There are also laws in the US outlining how to put together a legally acceptable privacy policy that you should be aware of as a business owner. Amazon) must also post online annual reports regarding any disclosures of PII, unless they are exempt from doing so. In 2014, 110 bills were introduced on student data privacy in 36 states, with 24 signed into law. The following discusses some of the important events in privacy in the United States as well as some of the key laws adopted by federal and state governments to protect privacy. Specifically, the SHIELD Act is intended to function as a preventive measure (kind of like a shield) — created for the main purpose of blocking data breaches before they occur (there was a 60% increase in data breaches between 2015 and 2016, so politicians are understandably on edge). As a result, states have been handling this responsibility on their own. [57] As of today, Kenya does have laws that focus on specific sectors. On June 26, 2018, California passed one of the toughest privacy laws in the United States, the Consumer Privacy Act of 2018. However, as listed below, at least 32 states require--by statute--that state government agencies have security measures in place to ensure the security of the data they hold. Texans have seen a variety of cybersecurity and privacy laws implemented recently, making their government one of the more proactive ones (in terms of data protection) in the US at this point. Other than this breach notification law (which also outlines what personal information is and who is responsible for keeping it safe), nothing else regarding data privacy (disposal, security, etc.) You may also reach the information by scrolling in this document. After the CCPA and CPRA passed in California, multiple states have proposed similar legislation to protect consumers. Laws that require the government to dispose of customer data after a set period of time, protect the privacy of e-reader and library data, and protect employee privacy helped the state to stand out. It also encourages businesses to enact a data privacy and security assessment, to ensure they’re complying to the full extent of this newly amended law. What state and federal laws govern HR data privacy compliance? The most comprehensive state data privacy legislation, the California Consumer Privacy Act (CCPA), was signed into law on June 28, 2018, and goes into effect on January 1, 2020. make North Carolina one of the forerunners of data-privacy rights in the US. A: Very few — three in total! This legislation pairs with their already existing statute mandating breach notifications to help make New Jersey one of the tougher pro-privacy states in the US. For example, the law only require businesses to notify the affected after the company has determined “the scope of the breach” and had time to restore the reasonable integrity of the system. Failure to do so will result in a $10,000 per-day penalty until the situation is ameliorated. In 2012 Kansas passed a statute regarding brief notifications, and how any entity collecting consumer information must do so in the event of a breach. Colorado’s Gov. As it stands, Oklahoma’s government only has legislation regarding breach notifications in place (titled the “Security Breach Notification Act”), and even this legislation is less severe than that of other states. Even if they aren’t yet beholden to some form of data privacy law, businesses need to start preparing for the inevitable. Service providers may use consumer data only at the direction of the business they serve and must delete a consumer’s personal information from their records upon request. State laws vary between these niche privacy spheres. The proposed regulation is stronger than other state laws in that it requires businesses to put their customers’ privacy before their own profits. Check out our infographic of global privacy laws. § 13), Provisions: One of the Minnesota statutes, the Minnesota Government Data Practices Act (MGDPA), protects individuals’ right to access government data and controls collection and storage and the use and dissemination of private data. New York, however, defines it as any information concerning a data subject that can identify that subject, including names, numbers, symbols, marks or other identifiers. South Dakota became the 49th state to enact a breach notification law, passing it just one week before the Alabama legislature enacted their own iteration. As a result, companies have been pressured to comply with a plethora of new United States privacy laws. These laws include: Student Data Privacy Protection Explained. It mandates data encryption, pushes for monitoring and reinforcement of security systems, and encourages the education of employees to reduce human error as much as possible. Many companies also share or sell this data to third parties who use the information for their own proprietary needs. At this point, all people, government agencies, and companies who process the PII of others must inform those affected by a breach within 45 days of determining a breach has occurred or face severe fines. It also includes a 30 day breach notification clause. Do U.S. federal and state privacy laws apply to foreign companies? An "X" next to the topic means that state law covers the subject (but not necessarily that the law affords a great deal of privacy protection) and an "0" means that the state does not have a law covering the topic. In addition to safeguards that prevent or deter hacks or intrusions, most of these regulations also impose standards regarding access to, usage of, and disclosure of data. State of privacy: a deep dive into U.S. data protection laws Oct 22, 2020. The NYPA would complement New York’s existing data breach notification law by expanding protection of personal information. Provisions: This data protection law provides requirements to protect Massachusetts residents against identity theft and fraud. They also require ISPs to get permission from their subscribers before disclosing non-PII data to third-parties, including online ‘surfing’ habits and the identities of the sites their subscribers visit. the 49th state to enact a breach notification law, Failure to do so will result in a $10,000 per-day penalty, amended their 2005 breach notification law, a variety of cybersecurity and privacy laws implemented recently, multiple bills and amendments that target students and their privacy, a bill that heavily scrutinizes data brokers, attorney general listing recent breach notifications online, takes the privacy of student data seriously, 45 days maximum to notify affected individuals once the breach has been discovered, amended their data breach notification law. Things like fingerprints and facial scanners fall under this — so a company like Facebook is at risk of litigation in Illinois, when they instantly tag user photos based on facial recognition technology without the proper consent. Hawaii’s existing legislation pertaining to data breaches uses vague language — stating how entities that collect consumer information must notify affected parties of a data breach “without unreasonable delay”. While Vermont established a data broker registry, requiring businesses that buy data to register with the state, many other states saw proposed laws wither under business opposition.. Currently, 25 U.S. States have their own data privacy laws governing the collection, storage, and use of data collected from their residents. The CCPA . The law requires federal agencies follow various strict record-keeping requirements. Bills that are voted down or die in committee will not be immediately removed because their inclusion helps illustrate how states are thinking about privacy. Previously, only unencrypted information that had been stolen would demand a mandatory notification. The law applies to businesses of any size, is not limited to for-profit businesses and does not include a revenue threshold like the CCPA. Data breach notification — An obligation placed on a business to notify consumers and/or enforcement authorities about a privacy or security breach. Breach notifications are also necessary, and penalties can get costly for non-compliance ($100 per user per day, although the penalty can’t exceed $250,000). Click on the state whose privacy laws you’re interested in to read more, and find helpful links for ecommerce businesses operating there. Similarly, at least 35 states and Puerto Rico each have separate data disposal laws. The California Consumer Privacy Act (CCPA) started as a ballot initiative in response to growing public concern about the amount of private data that digital and technology businesses in Silicon Valley have been quietly collecting and selling for decades. Breach notifications are the only privacy issue addressed in all 50 states. The court will consider the number of affected individuals, the severity of the violation, and the size and revenues of the covered entity. The CCPA applies to the activity of businesses, service providers that serve businesses, and third parties (which can be individuals or organizations). As illustrated above, US privacy law is a complex patchwork of national privacy laws and regulations that address particular issues or sectors, state laws that further address privacy and security of personal information, and federal and state prohibitions against unfair or deceptive business practices. Sure, all 50 states now have a data breach notification rule usually also calling for reasonable data security. Consumer reporting agencies and state regulators must also be notified in event of a breach. This is largely due to a widely publicized data mishap in 2005. An election commitment resulted in the release of a discussion paper in 2003 , but nothing more. Obtain consent & manage cookie preferences, Scan your website for GDPR and CCPA compliance, Informational articles on privacy law compliance & best practices, Internet Privacy Laws in the US: A Guide to All 50 States, Final Thoughts About Online Privacy in the US, the final state to enact a breach notification law, within 45 days of determining a breach has occurred, destroying personal information after it’s been used, encounters a security breach that affects at least 500 Iowa residents, public agencies… and non-affiliated third parties, restricts the use of student PII by cloud computing service providers, Database Security Breach Notification Law, include a 45-day window for breach notification, proactive rather than reactive data security, Montana expanded their breach notification law, requires businesses have a data disposal strategy, Nebraska’s state legislature amended their primary data privacy bill, New Hampshire has data breach laws in place, Personal Information Privacy and Protection Act, the 48th state to tackle the issue of data breaches, Stop Hacks and Improve Electronic Data Security Act, a 60% increase in data breaches between 2015 and 2016, a different set of data security laws established by the Department of Financial Services. However, it excludes information obtained from publicly available sources. The new law will go into effect on Sept. 1, 2018. There are California and Nevada privacy laws, and all the other US states privacy laws. notify affected persons without unreasonable delay, exceeds $250,000 or there are more than 500,000 residents affected, had time to restore the reasonable integrity of the system, most recent amendment to their data breach notification law, Breach of Personal Information Notification Act (BPINA), implement security measures that match the size and scope of the organization, no later than forty-five (45) calendar days, South Carolina’s 2012 breach notification law. Beyond simply mandating breach notifications, this legislation requires businesses to improve their data security practices and make sure third-party service providers have sufficient security in place as well. Furthermore, if the aforementioned breach affects 1,000 consumers or more, it is necessary to contact all consumer reporting agencies across the US of “the timing, distribution, and content” of the notifications. For more information about state data breach notification laws or other data security matters, please contact one of the following individuals listed below or another member of Foley’s Cybersecurity practice. What constitutes personal data varies by regulation, but it usually includes not just basics like names and addresses, but also healthcare data, financial records and credit information. The CCPA incorporates the core principles of the data protection and data privacy requirements in the General Data Protection Regulation (GDPR), the far-reaching privacy protection law enacted by the European Union. The well-known California Consumer Privacy Act (CCPA) created a wave of at least 9 similar regulations in Maryland, Nevada, Massachusetts, Rhode Island and other states. The Electronic Frontier Foundation took the time to comb through the popular e-book platforms’ privacy policies to give you the Iceland has been called the ‘Switzerland of data’ for its strict privacy laws. Pennsylvania has two major laws focused on online privacy: The BPINA (2005) defines personal information, and requires businesses and third party providers to notify users when this personal information gets accessed or acquired by a hacker or other unwelcome party. Connecticut aims its data security measures at two specific economic sectors: Notifications are governed by General Statute 36a-701b, and the rules governing data disposal apply to businesses but not to the government. In case of a dispute between a government entity and a person regarding data practices, the person can request an advisory opinion. Although the state may be geographically small, Rhode Island’s “Identity Theft Protection Act” (passed in 2015) is a big piece of data security legislation. Meanwhile, businesses need to stay abreast of the state laws because they can have extra-territorial application and steep penalties for compliance violations. It mandates breach notifications, as well as data disposal policies for businesses. Penalties for violations: Violation remediation can include a civil action for willful violation, or attorney’s fees if the government entity fails to follow the advisory opinion. Alabama was the final state to enact a breach notification law on March 28th, 2018 (going into effect June 1st of the same year). This law was signed with proactive rather than reactive data security in mind, making it more in line with the GDPR than legislation found in other states. Q: Which states have privacy laws? HR professionals have many responsibilities, but none as important as their duty to protect employees and the company. Data disposal laws apply to information in both paper and digital form that is no longer relevant to the enterprise. For instance, COPPA allows parents to review and delete their children’s information, and the CCPA allows California residents request deletion of their records, with certain limitations. The Privacy Act of 9174 regulates the way federal government records pertaining to individuals are handled by federal agencies. The law currently requires businesses to extend the rights provided by the CCPA to their employees. Although its status is currently pending, this bill would be a big step toward greater data breach transparency if it passed into law — requiring businesses to follow stricter data protection measures, and mandating breach notifications by both companies and third party service providers whenever a breach occurs. Failure to address a violation leads to a civil penalty of up to US$7,500 for each intentional violation and US$2,500 for each unintentional violation. Privacy Act of 1974 — Protects personal information maintained by federal agencies, Health Insurance Portability and Accountability Act (HIPAA) / Health Information Technology for Economic and Clinical Health Act (HITECH) — Protects personal health information (PHI), Gramm–Leach–Bliley Act (GLBA)— Protects financial information, Children’s Online Privacy Protection Act (COPPA) — Protects children’s privacy, Family Educational Rights and Privacy Act (FERPA) — Protects students’ personal information, Fair Credit Reporting Act (FCRA) — Governs the collection and use of consumer information, California Consumer Privacy Act (CCPA) — Protects privacy rights for residents of California, The New York SHIELD Act — Protects personal and private information of residents of the state of New York, Personally identifiable information (PII) — Information that could be used to identify, contact or locate an individual or distinguish one person from another, such as name, address and Social Security number, Personal health information (PHI) — Information on health status, medical history, insurance information, and other private data that is collected by healthcare providers and could be linked to a certain person, Personally identifiable financial information (PIFI) — Credit card numbers, bank account details or other data concerning a person’s finances, Student records — An individual’s grades, transcripts, class schedule, billing details and other educational records. Maryland’s Personal Information Protection Act was just amended in 2017 to include a 45-day window for breach notification, making it one of the more severe data breach laws enacted by any US state. § 45.48.010 et seq. South Dakota’s law grants businesses a 60-day window following the discovery of a breach to inform affected individuals, unless the attorney general finds the breach to “not likely result in harm of affected persons”. For instance, compromised data covering the biometrics or medical details of residents and even stolen security tokens are significant enough to trigger a mandatory notification. However, several laws in the U.S. do offer some form of the right to be forgotten. In addition to South Carolina’s 2012 breach notification law (which outlines acceptable types of notices and how they should be made in the “most expedient time possible”), the state government made a splash recently by passing another big bill titled the Insurance Data Security Act at the beginning of 2018. A patchwork of state regulation would institute a more limiting, highly-regulated environment based on the policy choices of a few states. Similar to Hawaii, Idaho also implements less severe (or more pro-business) language in their statute regarding data breaches. The law defines those duties broadly; businesses must secure consumers’ personal data against any risk and in any way that affects consumers. Arizona law also includes provisions related to the disposal of data, which applies to both government and business entities. Let's break down what each of these laws … Data Privacy vs. Data Security: What Is the Real Difference? This legislation also states that businesses or entities affected by a breach aren’t required to notify their customers until they’ve evaluated the “scope of the security breach”, thus giving more flexibility than a bill like the GDPR. However, efforts are being made to protect the privacy of the content people choose to read on their electronic devices. A few states have also amended previously existing bills to further clarify or expand upon the type of potentially compromised data that necessitates a breach notification. The laws do not have any provisions explicitly to protect the privacy of consumer data held by suppliers of goods and services. This article breaks down the crucial parts of each state’s privacy regulation law/bill — including who they cover, when they take effect, penalties, how to achieve compliance as well as why states took the reins before the federal government to protect consumer’s personal data. Almost every state in the U.S. has its own laws for the secure handling of sensitive data, such as medical, financial or educational records. John Hickenlooper signed a bill that significantly strengthens its current data breach notification requirements and adds new measures designed to enhance protections for consumer data privacy. 11 new state privacy and security laws explained: Is your business ready? Regarding the privacy of Nevada citizens, websites and online services providers must provide their visitors with some form of notice detailing: New Hampshire has data breach laws in place to protect its residents — requiring any entity or person that collects the personal information of consumers to not only notify the affected, but also contact: Regulatory fines could reach $10,000 per violation, so failure to notify consumers (intentionally or not) can quickly become a costly mistake. New Mexico addresses breaches, data disposal, and data security in their recently passed “Data Breach Notification Act”. Also worth mentioning is that Oregon classifies the publication of false/misleading statements in a website privacy policy as an “unlawful trade violation” — making the significance of having an honest, fine-tuned privacy policy quite apparent. Which U.S. laws impose requirements for securing data privacy? General Data Privacy Principles. Within the states that have laws pertaining to e-readers, most have focused on information that can be gathered by public entities like libraries. In California, data security regulations apply to businesses that collect or maintain PII, as well as their third-party contractors. If the court finds a company to be unreasonably delaying the process of notifying affected residents, civil penalties can reach up to $150,000. In 2016, Tennessee amended their 2005 breach notification law — making it so that if any user data falls into the wrong hands, whether it’s unencrypted or encrypted, affected individuals must be informed. If you have time, a share would mean a lot to us — don’t forget to @Termly_io and use the hashtag #Termly! For instance, Massachusetts defines ‘personal information’ as the person’s name in combination with any of their driver’s license number, social security number, state identification card or financial account information. Be gathered by public entities like libraries data, which applies to data privacy laws by state event... Of these apply only to governmental entities, some states are more rigorous than when! Following types of information are considered sensitive by U.S. laws impose requirements for securing data laws! The months and years to come, companies all over the United states not! 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