Understanding The Data Privacy Laws By State
Governments have implemented confidentiality rights laws to regulate how organizations collect, store, and process personal information, such as identities, addresses, health information, financial records, and credit history. It is because protecting data privacy has become a top priority for individuals. However, if you think your organization is missing out on keeping up with the latest data privacy laws, it is best to hire a reputed attorney who can help you remain compliant with the laws applicable in different states.
How are Data Privacy Laws Implemented in the US?
Globally, there is a tendency toward the necessity to address current privacy concerns and safeguard data privacy rights. The General Data Protection Regulation (GDPR), a comprehensive regulation that applies to EU member states and any organization that gathers or processes data of European residents, was adopted by the EU in May 2018 and was a pivotal event.
In simpler terms, the GDPR of the EU is not a law in the United States. Even though Senator Kirsten Gillibrand and others have recommended establishing a government data protection agency, the US will be one of the only democracies and the only OEC&D member countries without one as of 2021.
In addition, the United States continues to manage data protection through state and federal regulations because there is no overarching federal data protection law.
Before collecting or processing any data regarded as "personal information," businesses must be aware of all applicable laws. Moreover, violations of the relevant data privacy rules may result in legal action and penalties.
US State-Level Data Privacy Regulations
Several US states have privacy and data protection regulations. The enforcement of these laws is the responsibility of state attorney general offices. Furthermore, regulations at the state level frequently have contradictory or overlapping provisions.
For instance, although data breach reporting laws have been passed in all 50 US states, there are variations in the definitions of personal information and even what counts as a data breach. Similarly, at least 35 states have passed legislation governing data disposal, several specifically addressing digital data. Below is a list of data privacy laws prevalent in different United States.
California Consumer Privacy Act
This California data protection law was put on the ballot due to growing concern about the volume of private data that Silicon Valley-based digital and technology companies have been covertly gathering and selling for years. The fundamental tenets of the GDPR's data protection and privacy obligations for the European Union are incorporated into California law. The CCPA controls the collection, resale, and dissemination of California residents' data.
It applies to corporate operations and third parties and service providers who work for them. In addition, one of the law's main provisions states that companies must promptly reply to queries from Californian customers about the type of personal information being gathered about them and whether it is being marketed or released.
No discrimination against customers who exercise their rights is permitted by law, and customers must receive the same level of care even if they object to a specific activity, such as selling personal data. Service providers must remove a customer's personal information from their files upon request and are only permitted to utilize customer data as directed by the company they support.
California Privacy Rights Act
Usernames and passwords are now included in the CPRA's expansion of the CCPA's concept of "personal information." It was a controversial issue under the CCPA since "sale" did not specifically refer to sharing. Moreover, with the CPRA (California Privacy Rights Act), customers can now choose not to have their personal information sold or shared with outside parties.
Consumers have the right to gain permission to access personal information that a firm has gathered about them, not simply data from the previous 12 months. The California Privacy Protection Agency (CPPA), which will be in charge of enforcement, is also established by this statute. The fine might range from $2,500 to $7,500, depending on whether you're an individual or a business.
Colorado Privacy Act
Contrary to California's 2018 Consumer Privacy Act, the CPA (Colorado Privacy Act) does not have a minimum revenue requirement for application. It implies that every company must take this law into account. Data Processing Agreements (DPAs) with processors require CPA for controllers. Additionally, controllers will have to carry out and record data protection audits.
Since there is no personal right of action, the CPA will be enforced by the district attorneys and Colorado's attorney general. They may ask for monetary compensation or an injunction. The attorney general and the district attorneys must first issue a notice of violation and give businesses or people 60 days to correct the alleged violation before taking further action. This "right to cure" will be superseded by the "controller's right" in January 2025.
Virginia Consumer Data Protection Act
Unlike Colorado's CPA, Virginia's CPDA does not have an income threshold. It implies that organizations of all sizes must adhere to the law. In addition, the term "customer" does not include someone working in a professional or commercial capacity.
It is distinct from the CPRA (California Privacy Rights Act) since it excludes employee information. As a result, while determining whether the CPDA pertains to them, firms won't have to consider employee data.
The CDPA features a clause that restricts data acquisition to that which is "adequate, relevant, and substantially necessary regarding the purposes for which the data is processed. Similar to the GDPR in the EU and the CCPA in California.
Minnesota Data Privacy Act
This Minnesota law guards people's right to access public records and regulates the gathering, storing, using, and disseminating private information. It creates a method of classification to distinguish between various information kinds, such as education and law enforcement data. Additionally, information about people is labeled as public or non-public, and information about things other than people is labeled as guarded non-public or non-public.
If the government entity disregards the advisory referendum, penalties may include attorney's fees or a civil lawsuit for a willful violation. The court may also sentence public employees to criminal fines, suspend them without pay, or discharge them for willful offenses.
According to the law, every state agency must designate a "responsible authority," which will create protocols to ensure that data demands are "received and complied with appropriately and promptly."
Nevada Internet Privacy Bill
This law will give Nevadans a wider range of choices about selling their details. Additionally, it establishes new rules for "data brokers," companies whose revenue source is the sale of consumer information obtained from operators or other data miners.
Besides, data brokers must set up a specific email address where customers can ask them to stop selling their information. The data broker must reply within 60 days of receiving the request. Although the law broadens the extent of the opt-out option, the definition of "covered information" is more limited than that of "personal information" under comparable statutes.
While states in the US are passing their cybercrime and data privacy laws, the country still needs to pass a comprehensive national data privacy law like the EU. As other state laws take effect over the coming months and years, the situation will only become more complicated. Organizations should carefully research US data privacy regulations and make sure they adhere to all applicable standards to avoid harsh fines, litigation, and other consequences of noncompliance.
At ContractsCounsel, we are a panel of expert attorneys here to help you comply with different data privacy laws. So why wait? Get in touch with our professionals now.