What is Data Compliance?

Data Compliance Laws

There are more than 8.500 state and federal regulations that address records management in the United States. This can make it difficult for businesses to decipher what standards and compliances are required.

Three key data compliance regulations you should be familiar with are:

- General Data Protection Regulation (GDPR)

This law went into effect in 2018 and it gives consumers rights over their own personal data, including names, biometric data, identification numbers, IP addresses, locations, an d phone numbers. While this only applies to consumers in Europe, it's a good idea to familiarize yourself with this regulation, even if your consumers are based strictly in the US. The GDPR is the most comprehensive regulation and many use it as a guide for their own data protection plan.

- Health Insurance Portability and Accountability Act (HIPAA)

The HIPAA Privacy Rule is a US federal rule protecting US citizen's medical records and personal health information. Above all, it lays out the responsibilities for safeguarding patient information for healthcare providers and health insurance companies. Healthcare information can be used to buy fraudulent prescriptions, make fake medical insurance claims, and has the personal information that can be used for identity theft. With incredibly sensitive information like this, its incredibly important to prevent data breaches from ever happening.

- Federal Trade Commission (FTC)

The FTC Act allows the FTC to prosecute businesses for unfair or deceptive acts/practices which includes apps or websites that contain misleading information about privacy and security. This applies to all US based companies regardless of the industry and provides consumers with a wide range of guaranteed protection.

Methods of Limiting Liability

Legal compliance for security and privacy protection are very real concerns as the use of cloud systems have grown in popularity. Along with this, smart devices have made company databases even more vulnerable. We can help businesses develop data compliance practices to limit liability if a breach should occur.

Some of the best methods of legal compliance and limiting liability include: privacy policies, terms of use, indemnification agreements and indemnity clauses, business specific website agreements, third party non-disclosure agreements, and customer and/or reseller agreements.

Issues can still arise even when businesses have data compliance in order. Having procedures in place and measures to help limit liability will help in disputes and making litigation effective and efficient.