What is Data Privacy?

The Federal Trade Commission

The Federal Trade Commission (FTC) is a U.S. enforcement agency with the authority to regulate consumer protections. The potential for rapid collection and distribution of personal data grows each year due to advances in technology. The FTC does provide guidelines regarding fair information practices, unfortunately the regulations don't address all types of new situations. Consequently, its difficult for small businesses to get guidance on data privacy without an existing compliance infrastructure in place.

Legal Requirements for Collected Information

The range of data collected and disbursed electronically varies widely. This means that the rules and regulations differ for each type of data collected as well at the manner in which it is collected. For example, collection of medical information requires the Health Insurance Portability and Accountability Act (HIPAA) compliance. Companies should balance the rights of web users against the need to collect data, especially for marketing purposes. While the use of trackers on websites is common, there are legal requirements that must be followed, along with providing notice.

Proactive Measures and Limiting Liability

Companies benefit from audit reviews of their processes, procedures, and documentation for security of privacy. Businesses that educate themselves and their employees on the best practices for securing data have fewer issues with breaches or compliance defaults.

Legal compliance for security and protection of privacy are huge concerns for businesses. Data breaches and hacking are more common in this age of everything being virtual.

Some methods for legal compliance and limiting liability include: website privacy policies, terms of service agreements, indemnity clauses and indemnification agreements, e-commerce and website agreements, and non-disclosure agreements. Having procedures in place and measures to help limit liability will help in disputes and making litigation effective and efficient.