05 Aug Data Privacy and Encryption Laws Businesses Need to Comply With
If you are into business or frequently follow business news, you have heard that companies need to adhere to encryption and data privacy laws. Government agencies and other relevant parties have enacted laws to regulate business activities besides enhancing a secure business environment. Businesses that fail to comply with these legislations are liable for fines that can go to tens of millions.
Which laws must you adhere to, and how do you go about it? Different countries have different rules to regulate domestic and foreign business owners. Examples include the following.
Healthcare Insurance Portability and Accountability Act (HIPAA)
U.S law governing organizations are confidential and sensitive information of patients, including health plans, healthcare clearinghouses, healthcare providers, and their associates. According to the law, companies found guilty of disclosing patients’ confidential information are liable for punishment depending on the offense’s degree. More information is available here.
Gramm-Leach-Bliley Act (GLBA)
The law governs financial companies operating on U.S soil. It stipulates that companies that fail to protect their consumers’ data’s integrity and security are liable for criminal charges and penalties. More information about GILBA is available here.
California Consumer Privacy Act of 2018 (CCPA)
This law applies to all businesses that serve the residents of California or store their private data. It requires organizations to encrypt their clients’ data to prevent it from illegal to access by malicious third parties. The act emanated from the EU’s General Data Protection Regulation to protect California residents’ privacy rights. Read more about the law here.
Sarbanes-Oxley Act (SOX)
The U.S. Congress enacted this law to protect the public and shareholders from taking responsibility for fraudulent activities and errors that enterprises commit. The act establishes compliance deadlines besides issuing the requirements. All public companies must adhere to SOX.
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