• 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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