Companies that conduct business online often gather information from their customers. This is true whether you are simply interacting with consumers via an email form or conducting sales through your website. Often the information gathered is sensitive and can include names, addresses, telephone numbers and credit card information.
Laws Relating to Privacy Policies
There are specific federal laws to protect consumer privacy. They may not all apply to your business, but it is important to know what they require.
- Gramm-Leach-Bliley Act: The Gramm-Leach-Bliley Act (GLB Act or GLBA), also known as the Financial Modernization Act of 1999, is a law designed to control the ways that financial institutions deal with the private information of individuals. The GLBA applies to companies that deal with financial products, loans, financial services, and advice. The GLBA has three sections. First, the Financial Privacy Rule that regulates the collection of financial information. Second, the Safeguards Rule which states that financial institutions need to have security programs to protect customer information. Third, the Pretexting provisions, which prohibit accessing private information using false pretenses.
- Safe Web Act: This act provides tools to improve enforcement regarding spam, spyware, misleading advertising, and privacy.
- Health Insurance Portability and Accountability Act: Also known as HIPPA, this act is designed to protect private health information. It states that health care companies must be clear about when they will and will not share information with other parties.
What is User Information?
Legalese vs. Plain English
Julian Cordero is an Attorney, Music Producer, and Entrepreneur. Oh and he blogs too! Julian is licensed to practice law in New York and is the Managing Member of Cordero Law LLC, a New York City based law firm focusing on Business Law, Entertainment Law, and Intellectual Property.