In the era of everything being digitized, the increasing importance of data privacy has been highlighted now more than ever. In the recent years the US has seen many legislative changes aimed at strengthening data privacy protection for their citizens; this solidifies the importance of protecting data and its impacts on individuals and organizations being recognized by US. Previous laws about data privacy range from health data, financial data and data collected from children.
Previous US laws pertaining to data privacy include ‘The privacy act of 1974’, which dictates how federal agencies can collect and use data about individuals and record it in their system; this act dictates that federal agencies cannot disclose the data without the individuals written consent and individual’s right to request changes to be made in the data if its incorrect or incomplete. Data can however be disclosed to essential agencies such the Census bureau that may utilize it for statistical purposes.
Another law is the HIPAA, which is the Health Insurance Portability and Accountability Act, pertaining to health information which dictates, to healthcare providers and related entities such as medical insurance providers and Health clearinghouses, how they cannot disclose any patients information without their explicit written consent and a patient’s rights to request their health information, ask for any changes to be made to it if it’s incomplete or incorrect.
Additionally the Gramm-Leach-Bilely Act, signed into by Clinton in 1998, dictates that agencies that provide financial aid, like loans and financial or investment advice, to individuals should protect their client’s data and explain to them clearly how their data is being used and recorded and where it is being used.
Others laws include COPPA, the Children’s Online Privacy Protection Act, which is an act set in place to protect data collected from children under the age of 13, this act dictates that data collected from underage individuals should be prefaced with a disclaimer about their policy about the data being collected and how it’s being used. Additionally this act states that parents must have an option to review the data being uploaded by their children and be able to delete it, if deemed necessary. This act also states that social media sites should verify if their user is over 13 years of age before an individual is allowed use of their platform, this is done though a disclaimer before sign up processes on social media platforms.
Another US law about data privacy is the California Consumers Act, which states that consumers should be made aware of the information being collected about them and have the option to delete any data and be made aware of who it is being sold to, it also allows them to opt-out of any sale of personal information, this is one of the strictest policies in the Legislation. This allows the consumers to be aware of any sensitive information being disclosed and limit its usage.
Despite the efforts by the state there have been renewed calls for a federal data privacy law to create a consistent framework across the country. Several bills have been introduced in Congress, such as the Consumer Online Privacy Rights Act (COPRA) and the Data Accountability and Transparency Act (DATA). These laws are pitched with the aim to establish nationwide standards for data privacy, including user rights, business obligations, and enforcement mechanisms for said laws.
These evolving policies have had several implications on businesses both challenges and opportunities, companies must now navigate a complex series of federal laws all of which come with their own requirements and deadlines; this ensures data management practices, increased transparency and a productive approach to data privacy. Any failure to comply with these laws can result in reperecussions such as federal penalties and damage to the business’s reputations. On the contrary, businesses that prioritize and adhere to data protection laws can subsequently build trust with their consumers and create a reputation differentiating themselves from the rest of their market niche and mitigate any punitive damages associated with data privacy breaches.
The recent legislative changes in US data privacy laws signify a revolutionary moment in the protection of personal data. As states continue to enact extensive privacy regulations and federal efforts gain momentum, businesses must adapt to this new era of data privacy. By embracing these changes, companies can not only adhere to legal requirements but also develop a culture of trust and accountability in their transactions and interactions with consumers.
