Lawbrarian

Privacy Laws Every Business Should Know

By Lawbrarian Editorial Team
Published
Summary
Data privacy regulations are expanding rapidly across the United States. Learn about the key laws affecting businesses and how to comply.

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Federal Privacy Laws

While the U.S. lacks a comprehensive federal privacy law, several sector-specific laws apply:

HIPAA: Protects health information held by covered entities (healthcare providers, insurers, clearinghouses).

GLBA: Requires financial institutions to explain how they share customer data and protect sensitive information.

COPPA: Restricts collection of personal information from children under 13.

FERPA: Protects the privacy of student education records.

State Privacy Laws

A growing number of states have enacted comprehensive privacy laws:

California (CCPA/CPRA): The most comprehensive state privacy law. Gives consumers rights to know, delete, and opt out of sale of personal information. Applies to businesses meeting certain revenue or data processing thresholds.

Virginia (VCDPA), Colorado (CPA), Connecticut (CTDPA): Similar frameworks with consumer rights and business obligations, though with different thresholds and enforcement mechanisms.

Additional states: Multiple states continue to pass privacy legislation each year, creating an increasingly complex compliance landscape.

Key Compliance Steps

Map your data flows to understand what personal data you collect and how it's used. Update your privacy policy to be clear and comprehensive. Implement consumer rights request processes. Conduct data protection assessments for high-risk processing. Train employees on privacy practices. Implement reasonable security measures to protect personal data.

Penalties

Violations can result in significant fines. California's CCPA authorizes penalties of up to $7,500 per intentional violation. Many state laws also allow private rights of action for data breaches.