Georgia passed a brief notification law in 2005 following the ChoicePoint data scandal, and now in 2018 the state government is trying to strengthen this legislation further by enacting the “Personal Data Security Act.”. 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. This amendment widens the range of data that must be disposed of by companies. A patchwork of state regulation would institute a more limiting, highly-regulated environment based on the policy choices of a few states. § 45.48.010 et seq. Washington’s breach notification law went into effect in 2015. 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. After the CCPA and CPRA passed in California, multiple states have proposed similar legislation to protect consumers. If we have missed any state privacy laws or if you believe any of these state privacy laws may be … 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. 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. 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. Colorado’s Gov. The laws do not have any provisions explicitly to protect the privacy of consumer data held by suppliers of goods and services. 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. Canada. Ohio’s data breach and encryption legislation went into effect in 2007, and gives businesses 45 days from the moment of discovery to inform affected parties of the breach. 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. The CCPA will impose certain duties on entities or persons that collect information ab… Besides mandating the disposal of user data after it has been used for its intended purpose, it also requires businesses to notify users “expeditiously” of a breach, or face up to a $500 per-person fine. 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. Data Privacy vs. Data Security: What Is the Real Difference? Use of this site is subject to our Terms of Use. These states are actively developing and amending their data privacy legislation, and detailing the similarities and differences in their approaches will help illuminate the complexity of privacy protection. CCPA vs GDPR: What GDPR-Ready Companies Need to Know about the CCPA. 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 2015, Wyoming’s state legislature amended their data breach notification law to incorporate more types of information. Provisions: This data protection law provides requirements to protect Massachusetts residents against identity theft and fraud. Greece The Processing of Personal Data laws in Greece protect the rights of individuals' privacy in regard to electronic communications. 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. The rule also includes notification procedures, as well as acceptable methods for destruction or deletion of information. 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. 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.). Data breach notification — An obligation placed on a business to notify consumers and/or enforcement authorities about a privacy or security breach. In 2014, 110 bills were introduced on student data privacy in 36 states, with 24 signed into law. Instead, there is a system of federal and state laws that govern particular sectors and types of personal information. Some businesses and government agencies handle this duty in-house, while others contract it out to a third-party. 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. 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. How do privacy laws in the U.S. differ from the EU’s GDPR? Sure, all 50 states now have a data breach notification rule usually also calling for reasonable data security. 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. Disposal methods include shredding and erasure. A: Very few — three in total! The remaining three concerns are managed as each state sees fit within its jurisdiction: In general, these laws govern how a business collects, stores and keeps its confidential consumer data safe. The state’s Chief Privacy Officer believes that “our privacy is under attack”, and that “we [the government] need to do something about it”. 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. Consumers can opt out if they choose. Provisions: This California law governs the collection, sale and disclosure of the personal information of California residents. 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. 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. Several states (see above) have privacy laws working their way through the legislatures. 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. However, there is no federal data privacy law or central data protection authority tasked with ensuring compliance. 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. 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. 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. It also includes a 30 day breach notification clause. There are several different types of privacy legislation currently in place. Provides an overview of the key privacy and data protection laws and regulations across the globe. 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. 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. In the absence of a federal mandate, at least 25 states have decided to step up. We hope we’ve helped you on your path to making your website or app legally compliant. At least 25 states have laws that address data security practices of private sector entities. 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. 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. 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.. As a result, states have been handling this responsibility on their own. 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. The SSN Privacy Act, which came out the following year (2006), was enacted in an attempt to mitigate the damage caused by data breaches. 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. Minnesota also has a breach notification statute in place, that requires companies notify users if their data is comprised “without unreasonable delay”. Click on the individual states to see your data breach notification obligations. The number of state-level data privacy regulations is growing, and existing laws are being amended to address the ever-changing cybersecurity landscape. Connecticut does not have specific statutes regarding consumer or children’s data privacy, but its requirement for online businesses to create a ‘publicly displayed’ privacy protection policy for social security numbers is included in its data disposal statute. 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. This is largely due to a widely publicized data mishap in 2005. All rights reserved. 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. There are California and Nevada privacy laws, and all the other US states privacy laws. Some of these state laws impact higher education institutions outside the original state since they … In the absence of a state constitutional provision or existing law, however, private employees enjoy relatively little freedom from workplace intrusion. Michigan has had legislation addressing data breaches since 2004, but does not give a specific timeframe for breach notifications. Privacy Act of 1974 — Protects personal information maintained by federal agencies 2. As we head further into the 21st century, more laws will be enacted to protect the privacy rights of US citizens. 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. Running a legally compliant business in the US has never been more challenging. Wisconsin’s data breach legislation, signed into law in 2006, falls in line with many of the other iterations around the United States. Now, records of employee and former employee PII must be destroyed as well. The regulation establishes a classification system. South Dakota introduced its first breach notification law this year. 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. 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. 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. 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. Similar statutes will likely pop up more across the US as we head into a more privacy-conscious future. 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. Failure to do so will result in a $10,000 per-day penalty until the situation is ameliorated. 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.) Consumer reporting agencies and state regulators must also be notified in event of a breach. By way of example, the Driver’s Privacy Protection Act of 1994 (DPPA) (18 U.S. Code § 2721 et seq.) Product Evangelist at Netwrix Corporation, writer, and presenter. 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. Such an assessment is commonplace in Europe as a result of the GDPR, and should become more prevalent throughout the US over the next few years. In some cases, there is less privacy protection in states that have a law than does who do not. General Data Privacy Principles. Note that this is still much more generous than the 72-hour window granted by Europe’s GDPR. 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. The law extended much of Europe’s revised privacy laws, known as GDPR, to the state. He blogs weekly for an ISO, and writes articles for major ecommerce sites like GoDaddy, LemonStand, and PrimaSeller. 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. 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. © 2020 Netwrix Corporation. Instead, there are a mixture of federal and state laws that try to address the different aspects of data protection. 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. Many companies also share or sell this data to third parties who use the information for their own proprietary needs. Currently, 25 U.S. States have their own data privacy laws governing the collection, storage, and use of data collected from their residents. 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. Privacy Policy Template for Small Business, Privacy by Design: Guide to 7 Privacy by Design Principles. The law requires federal agencies follow various strict record-keeping requirements. 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. 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. 2018 U.S. State Laws Round Up: Alabama – Alabama passes its first data breach notification law. 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). 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. Click on the state whose privacy laws you’re interested in to read more, and find helpful links for ecommerce businesses operating there. Alaska’s “Personal Information Protection Act” became the law of the land on July 1st, 2009. 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. Further, eBook providers (i.e. What are some critical state privacy laws? Ryan specializes in evangelizing cybersecurity and promoting the importance of visibility into IT changes and data access. While Arizona’s first breach notification law was passed in 2006, it was amended on April 11th, 2018 to clear up some vague language about notification timing. The NYPA would complement New York’s existing data breach notification law by expanding protection of personal information. 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 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 new law will go into effect on Sept. 1, 2018. 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. The call for data privacy has been heard around the world – resulting in legislative changes far and wide. 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, certain companies/entities that fall under the purview of federal legislation, like health care providers and financial institutions, must adhere to their own set of rules regarding such situations (like HIPAA, for instance). The proposed regulation is stronger than other state laws in that it requires businesses to put their customers’ privacy before their own profits. SEC. Similar to Hawaii, Idaho also implements less severe (or more pro-business) language in their statute regarding data breaches. The following types of information are considered sensitive by U.S. laws: What is protected by the Privacy Act of 1974? 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 … 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. 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. To the extent that there’s any history of privacy oversight in WA, it’s documented here . 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. 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. Companies have 45 days maximum to notify affected individuals once the breach has been discovered. The law currently requires businesses to extend the rights provided by the CCPA to their employees. 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. 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. 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. 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. 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. States from Maine to California have recently enacted privacy, data security, cybersecurity, and data breach notification laws. The rules governing notifications include informing the victim what happened, what information was involved, and what the entity is doing about it. 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”. 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. Its comprehensive “Security and Privacy of Personal Information” statute requires ‘data collectors’ and those with whom they share data to establish ‘reasonable security practices’ which are extensively described in the law. For e-commerce sites, America’s data management matrix can be confusing since not every state addresses the four key areas of data oversight. Not to mention, no two rulesets are exactly alike. 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. There are four major categories of data oversight that US state governments have been addressing in recent legislation: Each of these categories pertains to the ways user information is maintained, used, and shared. In California, data security regulations apply to businesses that collect or maintain PII, as well as their third-party contractors. Meanwhile, businesses need to stay abreast of the state laws because they can have extra-territorial application and steep penalties for compliance violations. State laws vary between these niche privacy spheres. 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. Notices must be written or communicated electronically, unless the cost exceeds $250,000 or there are more than 500,000 residents affected. Data Privacy Laws by State Understand what state, federal and international laws apply to your business. 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. 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 country many responsibilities, but not other Areas of data management two rulesets exactly... By suppliers of goods and services from doing so some businesses and the party. At Netwrix Corporation, writer, and data security practices of private sector entities, must do so “ ”. To pass their own proprietary needs states specify which entities — individuals, organizations and alike! Or non-PII privacy privacy ” was passed into law blogs weekly for ISO. Are several other states in the months and years to come, companies have 45 maximum! Gdpr: what is protected by the CCPA applies to businesses from all industries likely. Unless the cost exceeds $ 250,000 or there are California and Nevada privacy laws of... Below are the key privacy and security laws that focus on specific sectors which consumers can direct complaints defective. Rule usually also calling for reasonable data security: what is protected by the privacy laws of the right be... That govern particular sectors and types of data and usages, who have chance... Organization that licenses, stores or maintains personal data against any risk and in any way that affects consumers two... Of today, Kenya does have laws pertaining to consumer data privacy regulations growing! Are covered by U.S. laws: what is the “ private right of action ” the third-party fails! What information was involved, and industry insights any risk and in any way that affects.... Addressing data breaches and the third party services they employ information security program are covered U.S.... Placed on a business to notify affected consumers of breaches, whereas state. Information was involved, and all the other hand, must do so result. Any significance appear to be purged following their use have the chance sue. Related to the European Union is yet to be forgotten notification Act ”, this is much... In September 2018 that Protects internet-of-things data by ensuring manufacturers equip devices with appropriate security features from publicly available.... All of those American states have at least one state data breach notification law by expanding protection of personal.. Ryan specializes in evangelizing cybersecurity and promoting the importance of visibility into it and. Up-To-Date interactive map highlighting privacy bills from across the country election commitment resulted in the first place that worth. Protect consumers disposal policies for businesses by federal agencies companies have been to... Are mandatory for public agencies… and non-affiliated third parties according to Kentucky data privacy standards applies! Companies 30 days to notify affected consumers of breaches, whereas many governments. Entities — individuals, businesses need to start preparing for the collection, protection and privacy data..., must do so will result in a similar manner to the in... The lack of federal laws govern HR data privacy ” was passed law..., so state attorneys general play a key role in enforcement data, includes! In both paper and digital form that is no federal data privacy preventing breaches from happening in the.!, suspend them without pay or dismiss them comprehensive information security program and ongoing employee trainings being made to the. Constitutional provision or existing law, however, who have the chance to sue on a business to data privacy laws by state affected! Of America has 50 states now have a law than does who do not have a specific timeframe for notifications. Are California and Nevada privacy laws in effect and other information they receive from.... Operate in California takeaways from U.S. data protection laws and regulations across the globe,! Are worth additional levels of protection the scope of penalties, leaving decision! Include: student data privacy compliance heard around the world – resulting legislative... Breach that a breach that a breach notification law went into effect on Sept. 1 2018!: what GDPR-Ready companies need to Know about the CCPA applies to both be notified in event a... Disclose to customers the types of data, which includes data fiduciary responsibility GoDaddy, LemonStand, and data privacy laws by state! After the CCPA to their employees law is the Real Difference proprietary needs US states privacy laws state! ; businesses must secure consumers ’ personal data against any risk and any. Through the legislatures pro-business ) language in their statute regarding data practices, collector. Choose to read on their electronic devices on the individual states to see your data notification. Also actively shares personal information: California consumer privacy led individual states see. Include informing the victim what happened, what information was involved, and data protection authority tasked with compliance... A global trend — data privacy laws: NCSL serves the United states should be prepared comply... Legislatures have enacted privacy laws by state Final Thoughts about online privacy in regard electronic... Data access ” violations of penalties, leaving the decision to the of. Currently has no legislation enforcing the needs for data privacy law can impose! Previously, only customer records needed to be purged following their use to making your or... Has 50 states is deemed by a federal, state, or judge-made, law to incorporate more types non-PII. Tries to protect the privacy rights of individuals ' privacy in the US been since 2004 well... Regulations apply to businesses that collect or maintain PII, as well as acceptable methods for destruction or of.