By way of example, the Driver’s Privacy Protection Act of 1994 (DPPA) (18 U.S. Code § 2721 et seq.) The Electronic Frontier Foundation took the time to comb through the popular e-book platforms’ privacy policies to give you the Child online privacy rules limit the content and scope of advertising placed on sites that attract children and permit children to have information about them removed. Also, according to section (g) of their 2013 statute — if a third party provider storing data for another business is gets breached at any point, it is up to the prior arrangement made between the provider and the business to determine who is responsible for notifying Wyoming residents. Over the past few years, every state has passed at least one law that governs the data collection practices of online businesses. The law also requires business to take “reasonable steps” to verify that third-party service providers with access to personal information have the capacity to protect that information. On June 26, 2018, California passed one of the toughest privacy laws in the United States, the Consumer Privacy Act of 2018. It will replace existing legislation that mandates breach notifications. Click on the state whose privacy laws you’re interested in to read more, and find helpful links for ecommerce businesses operating there. Please note this is only an information summary and is in no way a substitute either for consulting the laws themselves or for taking appropriately qualified legal advice. 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. 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. Washington is also preparing a privacy checklist tool in response to recent political movement around the world regarding data privacy. 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. The Vermont state government also recently passed a bill that heavily scrutinizes data brokers (any entity in the business of collecting the data of others). Instead, there is a system of federal and state laws that govern particular sectors and types of personal information. 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. As for now, there are several other states in the process of passing a comprehensive data protection rules. Failure to do so can result in increasingly severe monetary penalties ($1,000 per day after the 45-day period, $5,000 after the 60th day, and $10,000 per day after the 90th day). 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. The NYPA would complement New York’s existing data breach notification law by expanding protection of personal information. 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 state website also provides tips for preventing breaches from happening in the first place that are worth investigating. 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. However, there is no federal data privacy law or central data protection authority tasked with ensuring compliance. 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. A: Very few — three in total! Now, 100 countries spanning 6 continents have enacted privacy laws which seek to protect the information of internet users. This legislation made them the 48th state to tackle the issue of data breaches, and while they may seem a bit late to the party, their bill hits upon all the major areas of online privacy today. In the absence of a federal mandate, at least 25 states have decided to step up. The CCPA applies to the activity of businesses, service providers that serve businesses, and third parties (which can be individuals or organizations). For e-commerce sites, America’s data management matrix can be confusing since not every state addresses the four key areas of data oversight. This bill also lists out the various methods of acceptable notification, which includes. Many are also starting to wonder how net neutrality affects small businesses as large ISPs work to undermine net neutrality protections at both the federal and state levels. Many of these laws have been enacted in just the past two to three years, as cybersecurity threats and … 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. Within the states that have laws pertaining to e-readers, most have focused on information that can be gathered by public entities like libraries. Broad federal consumer protection laws, such as the Federal Trade Commission Act (FTC Act), that are not specifically privacy and data security laws, but are used to prohibit unfair or deceptive practices involving the collection, use, processing, protection and disclosure of personal information. Pennsylvania residents are also encouraged to take legal action against businesses that neglect to notify them of a breach — deeming such negligence to be a form of deceptive trade. 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. 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. 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. State laws vary between these niche privacy spheres. 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.. However, it excludes information obtained from publicly available sources. “House Bill No. 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). 11 new state privacy and security laws explained: Is your business ready? Each type of data handled by a state or government entity, like education data and law enforcement data, is categorized: Data on individuals is tagged as public or non-public, while data not on individuals is tagged as nonpublic or protected nonpublic. The proposed regulation is stronger than other state laws in that it requires businesses to put their customers’ privacy before their own profits. As a result, companies have been pressured to comply with a plethora of new United States privacy laws. 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. An election commitment resulted in the release of a discussion paper in 2003 , but nothing more. Scope: Any organization that licenses, stores or maintains personal data about Massachusetts residents is required to implement a comprehensive information security program. Get expert advice on enhancing security, data management and IT operations. Alaska’s “Personal Information Protection Act” became the law of the land on July 1st, 2009. Sure, all 50 states now have a data breach notification rule usually also calling for reasonable data security. The Definitive Guide to U.S. State Data Breach Laws 5 Alaska Reference: Alaska Stat. 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. Data Privacy vs. Data Security: What Is the Real Difference? Meanwhile, businesses need to stay abreast of the state laws because they can have extra-territorial application and steep penalties for compliance violations. There is no single catch-all data privacy law. The law protects the security and confidentiality of both consumer and employee Personal information includes first name, last name, Social Security number, driver’s license number, state-issued ID card number, financial account number, credit or debit card number, and any access code that enables allow to a person’s financial information. 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. Many companies also share or sell this data to third parties who use the information for their own proprietary needs. Most of the states, however, have not announced any intention of passing such laws yet, nor has the US government on a federal level. … 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. 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. South Dakota introduced its first breach notification law this year. There are several different types of privacy legislation currently in place. © 2020 Netwrix Corporation. Nevada legislation covers all four aspects of data management. Specifically, it was enacted to make sure consumers in Pennsylvania have the option to provide alternatives to their social security number in a variety of scenarios, so that their SSN can be better kept secret. 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. Summary: In Alaska, a security breach is defined as unauthorized acquisition (or the reasonable belief of such) that compromises the security, integrity, or confidentiality of covered information. Therefore, private employees must look to common, or judge-made, law to find privacy protections. Some businesses and government agencies handle this duty in-house, while others contract it out to a third-party. Regarding privacy laws relating to data privacy, like many African countries as expressed by Alex Boniface Makulilo, Kenya's privacy laws are far from the European 'adequacy' standard". To this end, we surveyed local counsel in 37 jurisdictions throughout the Americas, EMEA, and APAC, and asked them to describe the legal risks associated with violations of data protection laws, and summarize enforcement activities among local data protection authorities. Check out our infographic of global privacy laws. 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. Alabama was the final state to enact a breach notification law on March 28th, 2018 (going into effect June 1st of the same year). Enacted in 2018, the California Consumer Privacy Act (CCPA) is scheduled to take effect in 2020, posing a host of new data privacy compliance challenges for companies with customers in California or clients who do business in the state, which is the sixth-largest economy in the world. 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. 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. Data breach notifications are mandatory for public agencies… and non-affiliated third parties according to Kentucky data privacy law. A comprehensive assessment of all laws applicable to breaches of information other than PII. The “Arkansas Personal Information Protection Act” requires businesses to notify consumers “in a timely manner” that their data has been compromised. 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. The state’s Chief Privacy Officer believes that “our privacy is under attack”, and that “we [the government] need to do something about it”. If you’d like to check out which student privacy laws your state has passed, this is a good place to start. 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. 2018 U.S. State Laws Round Up: Alabama – Alabama passes its first data breach notification law. What about the privacy laws outside of the U.S.? The law defines those duties broadly; businesses must secure consumers’ personal data against any risk and in any way that affects consumers. Table of Contents Click on the individual states to see your data breach notification obligations. 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. North Dakota has been requiring breach notifications since June of 2005, and their particular law demands companies notify affected persons without unreasonable delay once a breach has been discovered. For example, if a foreign company does business in California and collects the personal information of California residents while the consumers are in California, it is subject to the CCPA. Also, breach notifications, when necessary, must be sent out no later than forty-five (45) calendar days unless deemed necessary by a law enforcement agency to complete a criminal investigation. 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. Consumer reporting agencies and state regulators must also be notified in event of a breach. Provides an overview of the key privacy and data protection laws and regulations across the globe. 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. 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. Privacy Policy Template for Small Business, Privacy by Design: Guide to 7 Privacy by Design Principles. The rules governing notifications include informing the victim what happened, what information was involved, and what the entity is doing about it. 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. Californian consumers were the only ones notified of this breach, however, because California was the only state at the time with a mandatory breach notification law. 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. September 10, 2018 | By Geoff Scott | Reviewed By Masha Komnenic CIPP/E, CIPM, CIPT, FIP, Home Resources Articles Internet Privacy Laws in the US: A Guide to All 50 States. After the CCPA and CPRA passed in California, multiple states have proposed similar legislation to protect consumers. [57] As of today, Kenya does have laws that focus on specific sectors. For e-commerce sites, America’s data management matrix can be confusing since not every state addresses the four key areas of data oversight. The 50 state data breach notification laws by state. Utah’s Protection of Personal Information Act mandates breach notifications, and also lays the foundation for how businesses should protect the data they store. The State recognizes the vital role of information and communications technology in nation-building and its inherent obligation to ensure that personal information in information and communications systems in the government and in the private sector are secured and protected. Such legislation makes them one of the state governments seemingly most concerned with protecting the data of underage residents. Click on the state whose privacy laws you’re interested in to read more, and find … That means they must take on a much different role than in years past and understand what federal and state laws apply to your company when it comes to data privacy compliance. Previously, only unencrypted information that had been stolen would demand a mandatory notification. § 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. 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. Currently, 25 U.S. States have their own data privacy laws governing the collection, storage, and use of data collected from their residents. Not to mention, no two rulesets are exactly alike. Several states (see above) have privacy laws working their way through the legislatures. Disclaimer: Termly Inc is not a lawyer or a law firm and does not engage in the practice of law or provide legal advice or legal representation. 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. 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. 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. One of the key terms of the law is that businesses must respond promptly to inquiries of California consumers regarding what personal data is being collected about them and whether it is being sold or disclosed. Although there’s no specific timeline in which businesses must inform their users a breach occurred, the process seems more transparent than in other states — with the state attorney general listing recent breach notifications online and publishing annual reports of the breaches that transpired during that year. 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. Similar statutes will likely pop up more across the US as we head into a more privacy-conscious future. 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. These laws include: Student Data Privacy Protection Explained. Unless you’re running a financial company or are the CEO of a bank (which is covered by a different set of data security laws established by the Department of Financial Services), SHIELD will be applicable to your business — even if you simply have NY-resident customers and you’re based in California (similar to the GDPR). Data disposal laws apply to information in both paper and digital form that is no longer relevant to the enterprise. They’ve also implemented multiple bills and amendments that target students and their privacy, such as the Utah Student Privacy Act and Public School Data Confidentiality Disclosure Rule. 11. 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