Not adhering to this statute could result in fines (levied by the state government), and/or civil action. 11 new state privacy and security laws explained: Is your business ready? The 50 state data breach notification laws by state. The state website also provides tips for preventing breaches from happening in the first place that are worth investigating. The proposed regulation is stronger than other state laws in that it requires businesses to put their customers’ privacy before their own profits. 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. Sure, all 50 states now have a data breach notification rule usually also calling for reasonable data security. 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. 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. At this juncture, West Virginia acknowledges data breaches with legislation, but not other areas of consumer data privacy. Furthermore, some states specify which entities — individuals, businesses, and/or governments — must notify citizens that a breach has occurred. PROCESSING OF PERSONAL INFORMATION. This amendment widens the range of data that must be disposed of by companies. 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. The United States of America has 50 states. [57] As of today, Kenya does have laws that focus on specific sectors. Such legislation makes them one of the state governments seemingly most concerned with protecting the data of underage residents. 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. Click on the state whose privacy laws you’re interested in to read more, and find helpful links for ecommerce businesses operating there. Note that this is in addition to laws — like CalOPPA — that mandate businesses generate a privacy policy and make it accessible to users. It mandates breach notifications, as well as data disposal policies for businesses. Below are the key takeaways from U.S. data protection laws that were passed in the last year. Vermont’s legislation regarding data breaches requires businesses to notify consumers within 45 days from point of discovery, however the state attorney general must be contacted and informed within 14 days. To the extent that there’s any history of privacy oversight in WA, it’s documented here . 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. Destruction/disposal of data is also acknowledged in their privacy statutes. 28 different statutes protecting data privacy in the private, public, and health sectors Connecticut also requires employers within the state to notify their workers if they monitor their email accounts or internet access. Understand what state, federal and international laws apply to your business. E-Reader privacy protects the content of library records, including digital records, search records, and any other information that can identify the consumer. New York Consumer Privacy Act (NYPA). As we head further into the 21st century, more laws will be enacted to protect the privacy rights of US citizens. For more information about state data breach notification laws or other data privacy or cybersecurity matters, please contact your Foley attorney or the following: State Data Breach Notification Laws Chanley Howell Partner Jacksonville 904.359.8745 chowell@foley.com Aaron Tantleff Partner Chicago 312.832.4367 The lack of federal laws pertaining to consumer privacy led individual states to pass their own laws protecting citizens. The language and definitions in these laws provide a baseline for the development of a comprehensive federal data privacy law. 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. Much the same is true with data privacy laws. Idaho currently has no legislation enforcing the needs for data disposal, data security, or non-PII privacy. Data disposal laws apply to information in both paper and digital form that is no longer relevant to the enterprise. Disposal methods include shredding and erasure. 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. However, there is a pending bill that would amend that law to exclude employees from the definition of “consumer.”. If you have time, a share would mean a lot to us — don’t forget to @Termly_io and use the hashtag #Termly! Regardless, if we see seven or eight individual state privacy laws passed by May of this year, that could force the federal government’s hand. 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. Good luck with your business! The 50 state data breach notification laws by state. 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). 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. If that’s the case, a new federal privacy law could be put into place by the start of the next calendar year. It doesn’t have a specific deadline for breach notifications (using unclear, “as soon a reasonably possible” language). 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. The CCPA will impose certain duties on entities or persons that collect information ab… Data breach notification — An obligation placed on a business to notify consumers and/or enforcement authorities about a privacy or security breach. 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. Official name: Standards for The Protection of Personal Information of Residents of the Commonwealth (201 CMR 17.00), Regulatory authority: Office of Consumer Affairs and Business Regulation. 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. 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.. How many U.S. states have data privacy laws? Instead, most regulation is at the state level, so state attorneys general play a key role in enforcement. The regulation establishes a classification system. Even if they aren’t yet beholden to some form of data privacy law, businesses need to start preparing for the inevitable. 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). 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. Additionally, California also requires non-financial businesses to disclose to customers the types of entities with which it shares their information. Every state … However, efforts are being made to protect the privacy of the content people choose to read on their electronic devices. Wisconsin’s data breach legislation, signed into law in 2006, falls in line with many of the other iterations around the United States. It will replace existing legislation that mandates breach notifications. 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). 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. 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. An election commitment resulted in the release of a discussion paper in 2003 , but nothing more. 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. 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. As governments work to take protection of data privacy rights under control, organizations are having to reconsider how they collect, store and process personal information. 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. What about the privacy laws outside of the U.S.? 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. 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. A patchwork of state regulation would institute a more limiting, highly-regulated environment based on the policy choices of a few states. Not to mention, no two rulesets are exactly alike. 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. 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. Further, eBook providers (i.e. In 2005, North Carolina took a stance to protect its residents and their PII by enacting the Identity Theft Protection Act (ITPA). What types of data are covered by U.S. privacy laws? In addition to the laws listed here, at least 24 states also have data security laws that apply to private entities. The law currently requires businesses to extend the rights provided by the CCPA to their employees. 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. Some of these state laws impact higher education institutions outside the original state since they … As for now, there are several other states in the process of passing a comprehensive data protection rules. If you’d like to check out which student privacy laws your state has passed, this is a good place to start. Many of these laws have been enacted in just the past two to three years, as cybersecurity threats and … As a result, states have been handling this responsibility on their own. The law requires federal agencies follow various strict record-keeping requirements. 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. Here is an up-to-date interactive map highlighting privacy bills from across the country. In California, data security regulations apply to businesses that collect or maintain PII, as well as their third-party contractors. 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. In terms of timing, this makes it the strictest breach notification legislation active in the US today. In the absence of a federal mandate, at least 25 states have decided to step up. Before you go, grab the latest edition of our free Cyber Chief Magazine — it explains the key factors to consider about data security when transitioning to the cloud and shares strategies that can help you ensure data integrity. 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. 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. The Legislature delegates the authority to issue advisory opinions to the Commissioner of Administration. 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. But as of this writing, only California, Nevada, and Maine have privacy laws in effect. 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. The rules governing notifications include informing the victim what happened, what information was involved, and what the entity is doing about it. How do privacy laws in the U.S. differ from the EU’s GDPR? 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. 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. 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. 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). United States Data Protection Laws: State-Level Approaches to Privacy Protection, A Data Risk Assessment Is the Foundation of Data Security Governance, eBook: 10 Questions for Assessing Data Security in the Enterprise, Standards for The Protection of Personal Information of Residents of the Commonwealth (201 CMR 17.00), Data Privacy Solutions: How to Choose the Right One, Privacy Regulations Changing the Face of Cybersecurity, GDPR Data Subject Rights: How to Handle the Requests. 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. The following types of information are considered sensitive by U.S. laws: What is protected by the Privacy Act of 1974? The most recent amendment to their data breach notification law demands notifications occur within 45 days of the breach being discovered, but exempts “HIPAA covered entities” since they follow their own rule for notifying consumers. These laws include: Student Data Privacy Protection Explained. Iceland has been called the ‘Switzerland of data’ for its strict privacy laws. South Dakota introduced its first breach notification law this year. This right is often considered incompatible with the American right of freedom of speech, enshrined in the First Amendment of the Bill of Rights, because forcing information to be delisted can be seen as narrowing this freedom and bringing the risk of censorship. State of privacy: a deep dive into U.S. data protection laws Oct 22, 2020. It establishes notification timeline requirements for breach notifications and also establishes a Texas Privacy Protection Advisory Council. 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. Table of Contents Originally, only customer records needed to be purged following their use. 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). For e-commerce sites, America’s data management matrix can be confusing since not every state addresses the four key areas of data oversight. Currently, 25 U.S. States have their own data privacy laws governing the collection, storage, and use of data collected from their residents. 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. Ryan specializes in evangelizing cybersecurity and promoting the importance of visibility into IT changes and data access. 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. Provisions: This California law governs the collection, sale and disclosure of the personal information of California residents. 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. Facing International Pressure 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. 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. The law defines those duties broadly; businesses must secure consumers’ personal data against any risk and in any way that affects consumers. Other states have also defined what constitutes a ‘breach,’ how and when the notification must be issued, and whether there are exemptions from the rule. 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”. 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”. governs the privacy and disclosure of personal information gathered by state Departments of Motor Vehicles, including photographs, Social Security Number (SSN), Driver Identification Number (DID), name, address (but not the five-digit ZIP code), telephone number, medical information and disability … Alabama’s data breach notification law went into effect on June 1, 2018. The Electronic Frontier Foundation took the time to comb through the popular e-book platforms’ privacy policies to give you the In some cases, there is less privacy protection in states that have a law than does who do not. 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. 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 CCPA . It also includes a 30 day breach notification clause. Colorado’s Gov. 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. However, they are currently in the process of ironing out an act that would strengthen the ITPA, and make North Carolina one of the forerunners of data-privacy rights in the US. 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. Major companies have flaunted their ability to mishandle and straight up sell our information for too long, and people (plus the politicians that represent them) are finally starting to notice. As a result, companies have been pressured to comply with a plethora of new United States privacy laws. 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). Which U.S. laws impose requirements for securing data privacy? Let's break down what each of these laws … The United States does not have a comprehensive law governing data collection, protection and privacy. Therefore, private employees must look to common, or judge-made, law to find privacy protections. Similar statutes will likely pop up more across the US as we head into a more privacy-conscious future. A: Very few — three in total! 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. 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.”. Alabama was the final state to enact a breach notification law on March 28th, 2018 (going into effect June 1st of the same year). 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. 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. 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. He blogs weekly for an ISO, and writes articles for major ecommerce sites like GoDaddy, LemonStand, and PrimaSeller. 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 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. In the months and years to come, companies all over the United States should be prepared to comply with stricter data privacy standards. 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. 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. This law goes into effect in January 2020. 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. 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. 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. 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