From California to Virginia, new State Privacy Laws are coming into effect in 2023. When it comes to regulatory compliance, your business should pay attention to these regulations. Not only can non-compliance lead to penalties and fines, but they also prescribe how to best handle data.
What is data privacy?
Data. A word that originated around the 1640s and was initially referred to as “a fact given or granted”. By 1946 this meaning was adapted to “transmittable and storable information by which computer operations are performed”. And so the modern-day understanding of data was formed. Interestingly, both these definitions still capture the relevance of data and, in particular, how the regulations are formed around it. Was the data given or granted? What operations will be performed with the data?
One could argue that the meteoric rise of the internet age negated the necessity to be concerned with how and why data is collected, but that is no longer the case. As people and businesses became more adept at using technology, they also become aware of loopholes where data could be exploited.
Data privacy became a major concern, and official regulations were soon needed to protect both the consumer and the organization. All over the world, governments and lawmakers started realizing the vital importance of data privacy and regulations followed. One of the most well-known data protection legislatures is the European Union’s GDPR. This 99 article Act has successfully moved data privacy into the international spotlight, and many countries are rapidly following suit, including the United States.
State Privacy Laws are coming, and they mean business
Hot on the heels of signing the executive order to implement the European Union-U.S. Data Privacy Framework (EU-U.S. DPF), a raft of State data privacy laws are coming online in 2023. And they will be enforced. Both Sephora and Samsung are currently grappling with potential violation penalties of the California Privacy Rights Act (CPRA). If you are unaware and your business isn’t ready to process data compliantly, it’s time to find out as much as possible to avoid fines and other penalties.
Additional info on State Privacy Laws
A quick internet search will provide you with tons of information, and we collected a few as starting points. For example, Klein Moynihan Turco compiled this synopsis while Varonis did a comparison and breakdown by State from a data security point of view. The International Association of Privacy Professionals (IAPP), the world’s largest information privacy organization, has also published this compliance chart created by Thomson Hine for a quick overview of opt-out implications.
The regulations are set to have widespread implications for businesses operating within these States, and many other States are very likely to follow suit.
How the new State Laws affect your business
Care should be taken to accurately assess your operations for any and all point of data collection, handling, processing and storage. Consider every point of contact with your organization and what information is shared with each type of interaction.
Take, for example, call recording. Your business record calls as a way to monitor the quality of conversations or to handle disputes. During these conversations, an immense amount of data is collected via recording and may or may not contain personal information. This data commonly gets stored in on-premise storage servers or devices for easy access and/or security reasons. While this may have been sufficient in the past, this setup may not necessarily provide complete regulatory compliance anymore. Not to mention the unnecessary costs associated with it.
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