Data Breaches.
Nearly every state has some form of a data breach law that requires
companies to notify consumers if data is lost or someone gains access
to the company’s databases.Protection of Social Security Numbers. Some states have passed laws requiring companies to protect the social security numbers of their customers and employees.Adherence to Privacy Policies.
If you publish a privacy policy for your website, you’d better abide by
its terms. Otherwise the Federal Trade Commission could come after you
for committing an unfair or deceptive act or practice, just like it did
to Toysmart.com when that company tried to sell off its user data in
contravention of its privacy policy.Behavioral Advertising.
Many companies attempt to tailor ads to their website users based on
their past browsing history. So far, the FTC allows the advertising
industry to self-regulate the practice. The real danger might be in
customer anger at the practice and not the threat of any kind of legal
action, although at least one class action has arisen because of a
company’s behavioral advertising practices.
Companies should minimize the amount of data they collect.Security - both physical and electronic - should be a priority.Old records should be destroyed completely.Companies should put strict policies into place concerning data breaches and follow them.Outside
vendors’ privacy and security policies must meet the company’s
standards, and the company should clearly state and monitor the
vendor’s obligations.Companies should take out a cyber-insurance policy to help offset any possible identity theft and/or data privacy claims.
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Civil Rights
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