The United States does not have a comprehensive law governing data collection, protection and privacy. Types of legislation include: Businesses most only “give notice as soon as possible to the affected Idaho resident,” and this process can be delayed if law enforcement agencies deem it necessary. Navigate these laws more easily by using a privacy policy sample template to create your policy. These laws include: 1. 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). Overview of Changes to Colorado’s Consumer Protection Data Protection LawsWho is impacted by the changes to Colorado’s consumer data privacy laws?Any person, commercial entity, or governmental entity that maintains, owns, or licenses personal identifying information (“PII”) of Colorado residents in the course of its business, vocation, or occupation. Geoff Scott is a guest contributor at Termly, and his expertise lies in data & privacy management as well as payment processing. In most states, the collector of the information retains liability if the third-party contractor fails to properly dispose of the data. After it achieves its purpose or the customer relationship ends and the PII isn’t needed, the entity must dispose of it using a method that renders the sensitive information unreadable or indecipherable. 2019 U.S. State Laws Round Up: Illinois ( SB 1624 ) – Illinois proposes notification requirements to the Attorney General The Governor is expected to sign an amendment to the Personal Information Protection Act, requiring businesses to notify the Attorney General of breaches involving at least 500 Illinois residents. 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. Montana also requires businesses have a data disposal strategy in place. If passed, SD.341 “An Act Relative to Consumer Data Privacy,” is slated to go into effect January 1, 2023. Additionally, California also requires non-financial businesses to disclose to customers the types of entities with which it shares their information. Furthermore, some states specify which entities — individuals, businesses, and/or governments — must notify citizens that a breach has occurred. Destruction/disposal of data is also acknowledged in their privacy statutes. Below are the key takeaways from U.S. data protection laws that were passed in the last year. We are witnessing a global trend — data privacy protection is becoming a priority for individuals, organizations and governments alike. 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. Louisiana passed its own Database Security Breach Notification Law in 2015, likely due to the fact that breaches are becoming a more common (and serious) problem across the world (43% of American companies having been found affected by a breach the previous year). 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. PROCESSING OF PERSONAL INFORMATION. This is largely due to a widely publicized data mishap in 2005. However, it excludes information obtained from publicly available sources. Consumer reporting agencies and state regulators must also be notified in event of a breach. All information, software, services, and comments provided on the site are for informational and self-help purposes only and are not intended to be a substitute for professional legal advice. Delaware’s state government restricts the scope and content of information directed at children by websites, cloud-based technology, online service providers, and mobile or online apps. However, this same piece of legislation does not require government entities to do so. Although many of the bills included in the table will fail to become law, comparing the key provisions in each bill can be helpful in understanding how privacy is developing in the United States. In California, data security regulations apply to businesses that collect or maintain PII, as well as their third-party contractors. All 50 U.S. states have data breach notification laws, at least 35 states and Puerto Rico each have separate data disposal laws, and at least 25 states have their own data privacy laws. The rules governing notifications include informing the victim what happened, what information was involved, and what the entity is doing about it. States from Maine to California have recently enacted privacy, data security, cybersecurity, and data breach notification laws. For e-commerce sites, America’s data management matrix can be confusing since not every state addresses the four key areas of data oversight. Between that, the existing state-level laws and those in other parts of the world, businesses of all sizes must start seriously evaluating their data handling processes and putting the necessary safeguards in place. Official name. Although Virginia first enacted a breach notification during the 2008 legislative session, they amended it in 2017 to expand what types of scenarios necessitate widespread notifications. There’s also a 45-day maximum period following the discovery of a breach that a company has to notify anyone affected by it. 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. The call for data privacy has been heard around the world – resulting in legislative changes far and wide. If you have time, a share would mean a lot to us — don’t forget to @Termly_io and use the hashtag #Termly! Not only does it demand businesses have a means of disposing consumer data after its use has expired, but it also requires companies to implement security measures that match the size and scope of the organization — making it one of a growing number of state bills that demands more from businesses when it comes to protecting user data. There are several different types of privacy legislation currently in place. To help you understand your obligations, we have summarized the key provisions of the data privacy laws by state for California, New York, Massachusetts and Minnesota. Data Privacy vs. Data Security: What Is the Real Difference? make North Carolina one of the forerunners of data-privacy rights in the US. Iceland has been called the ‘Switzerland of data’ for its strict privacy laws. To protect student information, several state legislatures have enacted their own laws governing data security. Official name: California Consumer Privacy Act (CCPA). 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”. While a consumer could argue a business didn’t do so and seek compensation through the courts, such vague legal language leans in favor of businesses rather than those whose information was affected. The Legislature delegates the authority to issue advisory opinions to the Commissioner of Administration. As a result, states have been handling this responsibility on their own. Much the same is true with data privacy laws. Data breach notifications are mandatory for public agencies… and non-affiliated third parties according to Kentucky data privacy law. Similar statutes will likely pop up more across the US as we head into a more privacy-conscious future. If a breach notification is deemed by a federal, state, or local government entity to negatively impact a criminal investigation. However, in June 2018, the “Protections for Consumer Data Privacy” was passed into law. New York Consumer Privacy Act (NYPA). If we have missed any state privacy laws or if you believe any of these state privacy laws may be … He blogs weekly for an ISO, and writes articles for major ecommerce sites like GoDaddy, LemonStand, and PrimaSeller. Most of the states, however, have not announced any intention of passing such laws yet, nor has the US government on a federal level. 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. Washington’s breach notification law went into effect in 2015. The proposed regulation is stronger than other state laws in that it requires businesses to put their customers’ privacy before their own profits. Further, eBook providers (i.e. Privacy Policy Template for Small Business, Privacy by Design: Guide to 7 Privacy by Design Principles. Here is an up-to-date interactive map highlighting privacy bills from across the country. Breach notifications are the only privacy issue addressed in all 50 states. 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. Texas (HB 4390) – Texas’ new data privacy law has been in effect since January 1, 2020. The CCPA . Sure, all 50 states now have a data breach notification rule usually also calling for reasonable data security. This handy guide summarizes key components of state data privacy laws that have been proposed and enacted across the United States, presenting the information in an easy-to-read chart format, as well as providing an update on the status of pending legislation as of Oct. 9, 2019. In the United States, at the federal level, the power to enforce data protection regulations and protect data privacy belongs to the U.S. Federal Trade Commission (FTC), which has a broad level of authority. 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. 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. In 2015, Montana expanded their breach notification law to ensure medical entities / businesses that collect medical information inform their consumers in the event of their information being compromised. The United States of America has 50 states. Product Evangelist at Netwrix Corporation, writer, and presenter. Privacy Act of 1974 — Protects personal information maintained by federal agencies 2. Good luck with your business! Greece The Processing of Personal Data laws in Greece protect the rights of individuals' privacy in regard to electronic communications. We hope we’ve helped you on your path to making your website or app legally compliant. 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. In Connecticut, state Rep. David Michel, a freshman Stamford Democrat, said his constituents wanted more data privacy, so he sponsored a bill that would have made genetic testing data confidential. Predictions for upcoming data privacy laws. The Privacy Act of 9174 regulates the way federal government records pertaining to individuals are handled by federal agencies. New Mexico addresses breaches, data disposal, and data security in their recently passed “Data Breach Notification Act”. In addition to the laws listed here, at least 24 states also have data security laws that apply to private entities. 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”. If that’s the case, a new federal privacy law could be put into place by the start of the next calendar year. 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 … 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. The privacy laws of the United States deal with several different legal concepts. 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. The result is that while the EU has one basic law covering data protection, privacy controls and breach notification , the U.S. has a patchwork of state and federal laws, common law and public and private enforcement that has evolved over the last 100 years and more. Argentina also actively shares personal information with other countries. What are some critical state privacy laws? Certain sensitive data is exempt from CCPA requirements, including protected health information (PHI) already covered by the Health Insurance Portability & Accountability Act (HIPAA), medical information already covered by the California Confidentiality of Medical Information Act, and some information covered by the Gramm-Leach-Bliley Act (GLBA). Wisconsin’s data breach legislation, signed into law in 2006, falls in line with many of the other iterations around the United States. Data Privacy Laws by State The GDPR protects one of the fundamental privacy rights: the right to be forgotten, which is the right to request that one’s personal information to be removed from an organization’s records. These laws apply to any collection of data on German soil, and Federal Data Protection Agency and 16 separate state data protection agencies enforce them. 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. What about the privacy laws outside of the U.S.? However, West Virginia does takes the privacy of student data seriously, and has enacted bills like the Family Educational Rights & Privacy Act plus the Student DATA Act to further protect the information of young people, and make sure their data doesn’t get abused by commercial entities. It doesn’t apply to state and territory public sector health service providers, such as public hospitals. A comprehensive assessment of all laws applicable to breaches of information other than PII. 11 new state privacy and security laws explained: Is your business ready? The regulation establishes a classification system. Chapter 501 of Florida’s “Regulation of Trade, Commerce, Investments, and Solicitations” statute requires businesses to dispose of customer records when they are “no longer to be retained.”. However, there are two scenarios that this 30-day window can be expanded or potentially negated: All breaches that occur, whether they fall into the previously stated categories or not, must be reported to the attorney general and kept on record for five years. The breach is deemed by government authorities to, Ensure businesses notify customers in the event of a breach, and, Make sure companies and other entities have a strategy in place for, how they will notify visitors of changes to their privacy notices, whether third-parties also access consumer data through that site, “Appropriate regulators” (the insurance commissioner, for instance), The Attorney General (if there’s no regulator that fits the bill). Note that this is still much more generous than the 72-hour window granted by Europe’s GDPR. 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. This bill also lists out the various methods of acceptable notification, which includes. 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. The law requires companies to have a dedicated person to run a data security program and ongoing employee trainings. They also limit the sharing of PII related to any library user (actual or online), but do allow the release of that information to law enforcement agencies if necessary. Massachusetts is also working on a CCPA-like data privacy regulation. This privacy legislation has a very controversial line that says that organizations should “act in the best interests of the consumer.” It does not explain, however, what companies should actually understand about the interests of New Yorkers and other customers. However, there is a pending bill that would amend that law to exclude employees from the definition of “consumer.”. But Gillibrand’s bill would not affect state laws like California’s, her office confirmed in an email. In terms of timing, this makes it the strictest breach notification legislation active in the US today. Many companies also share or sell this data to third parties who use the information for their own proprietary needs. HR professionals have many responsibilities, but none as important as their duty to protect employees and the company. Third party providers, on the other hand, must do so “immediately”. Bills like the Student Data Privacy Act and Cybersecurity Education Act operate as not only data protection laws, but also encourage the younger generation to engage in smart privacy practices from a young age — even mandating public schools to offer coding courses for language credits. Maine has a well-hashed-out breach notification statute, that requires both businesses and third party vendors to notify affected parties of a breach (unless law enforcement postpones the process to aid in a criminal investigation). Also worth mentioning is that KRS 365.734 (which went into effect in July 2014) restricts the use of student PII by cloud computing service providers — barring them from collecting email addresses, phone numbers, photos, and other such data that helps identify students. Click on the individual states to see your data breach notification obligations. The “Colorado Consumer Protection Act” went into effect in 2016, and it requires businesses to have a policy for the destruction of consumer personal information. A: Very few — three in total! Since then, all 50 states plus the District of Columbia, Puerto Rico, Guam, and the Virgin Islands have implemented rules requiring notification to individuals when their personal information (PI) has been compromised. Provisions: This data protection law provides requirements to protect Massachusetts residents against identity theft and fraud. States with such regulations aim to closely monitor and restrict how businesses / organizations use non-PII data collected from their customers — data such as how many times a user visits a page, how long they stay, and what they look at while they’re there. As a result, companies have been pressured to comply with a plethora of new United States privacy laws. 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