The Digital Age brought more data collection than ever before. Despite this increase, Congress has yet to pass any regulation governing collection. As a result, many state legislatures are enacting legislation to protect citizens’ data privacy. Though Indiana has not passed its own comprehensive privacy legislation, other states’ data privacy laws have extensive implications for Indiana business owners.
Business owners should be aware of laws as they develop to ensure they avoid fines or lawsuits. California holds businesses to the strictest state standard in protecting their citizens’ data privacy with the introduction of the California Consumer Protection Act (CCPA) in 2018, and the California Privacy Rights Act (CPRA), which will take effect Jan. 1, 2023.
Businesses without a California presence may believe a California law does not affect their operations, but the California laws regulate all data-collecting entities that serve or employ residents, even if the business exists outside the state. If your business serves even one California resident, it is subject to the requirements set in the forthcoming CPRA.
To ensure compliance with new laws and to protect your business, it is imperative to have a privacy policy that complies with the CPRA. A privacy policy will protect both your customers and business. In the event of a data breach, a proper privacy policy can shield your business from liability or otherwise mitigate exposure. A solid externally-facing privacy policy describes the information a business collects and explains how the information is collected in a way that is easy for consumers to understand. It should also ensure that consumers are aware of their rights and provide a designated person whom consumers may contact to exercise their data privacy rights.
An effective privacy policy should reach the standard of the CPRA even if the business currently does not serve California. Early compliance guards against liability, prepares for new laws and prepares your company for new data privacy regulations.
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Email: mbs@barrettlaw.com
