5 Data Privacy Laws That Could Affect Your Business

Data is an important economic factor that brings more progress and value to a company. It has the potential to take them to new heights if properly managed and studied. However, the same data can also expose organizations to risk if left unexplored and unsecured.

With so many privacy laws in effect or in the process of being implemented, organizations need to understand how these privacy laws will affect their business and what they can do to comply. Here’s a quick breakdown of five privacy laws that could impact your business.

European Union (EU) General Data Protection Regulation (GDPR)

The EU General Data Protection Regulation was introduced in May 2018 and has a massive impact on companies. Often regarded as some of the toughest data protection laws in the world, the GDPR guidelines impact any organization operating inside or outside the EU that offers goods or services or monitors consumer behavior within EU territories. The laws enforced by the GDPR relate to rights and freedoms granted to the data subject or individual user by the “data controller” and “data processor”.

EU data protection law covers the data of EU citizens worldwide. Companies that do not comply can face fines of up to €20 million or 4% of their annual global turnover per violation.

California Consumer Privacy Act of 2020 (CCPA)

Since the US does not yet have established privacy laws, most states have introduced their own legislation to address the issue. The California Consumer Privacy Act empowers California end users by giving them more authority over the personal information companies collect. The CCPA regulations provide set guidelines on how to properly implement the law.

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The law does not require businesses to have a physical office in California and applies to all for-profit businesses that offer their goods and services to California residents. A California resident refers to an individual who is a resident of California, even if the person is temporarily residing outside of the state.

The CCPA law aims to strengthen the privacy rights of California consumers. For example, it gives customers the right to know:

  • Any private information that companies store on it.
  • How this information is used and disseminated.
  • The option to delete collected confidential information.
  • A way to opt-out of the sale of their classified information.
  • The right not to be discriminated against when exercising their CCPA rights.

UK Data Protection Act 2018 (DPA 2018)

Due to Brexit, the Data Protection Act 2018 is the UK implementation of the EU GDPR. DPA 2018 governs how businesses, corporations and even the government use consumers’ private information. Under the 2018 DPA, end users have the right to:

  • Know the use of their confidential data.
  • Keep your data up to date.
  • Erase their data.
  • Stop or restrict the processing of certain personal data.
  • Object to the processing of their data in certain circumstances.
  • Have more control over your data when it comes to automated decision-making to predict behavior or interests.

When it comes to the laws of DPA 2018, all companies responsible for the use of private information must adhere to strict rules known as “Privacy Principles.” Businesses must ensure that the information collected is processed lawfully and fairly, based on consumer consent. You must also ensure that the processing is satisfactory, relevant and limited to the essentials. In addition, the information must be kept up to date and no longer than necessary.

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Finally, there are stricter legal protections for more sensitive data such as race, ethnicity, religious beliefs, genetics, union membership, political opinions, health, and sex life or orientation.

The California Privacy Rights Act of 2020 (CPRA)

The California Privacy Rights Act replaces the California Consumer Protection Act. The CPRA is enacting even tougher privacy obligations for businesses to strengthen the rights of California consumers. The CPRA does not replace the CCPA, but offers an alternative view of data protection measures.

The CPRA will provide customers with more alternatives to opt out of targeted messages from companies or third-party institutions to whom they have given data. In addition, the CPRA Act contains extensive requirements directing organizations to employ prudent privacy management systems and practices. The primary goal of the CPRA law is to provide Californians with the most robust online privacy laws in the world, create an enforcement arm for end users, and make it more difficult to water down privacy laws in the future.

Virginia Consumer Privacy Act (VCDPA)

The Virginia Consumer Data Protection Act went into effect in March 2021, making Virginia the second state after California to officially enact inclusive consumer privacy laws. Because the VCDPA is condensed into just eight pages, it is significantly shorter than the California Consumer Privacy Act. The VCDPA law gives Virginia consumers more control over the private information organizations collect about them and directs companies on how to comply with stricter privacy protocols. The VCDPA is one of the four US privacy laws that has received the green light for approval.

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The VCDPA delineates how organizations process private information associated with an identifiable individual residing in Virginia. The VCDPA also classifies certain data as confidential data that includes private data such as race or ethnic origin, religious beliefs, sexual orientation, citizenship or immigration status, and mental or physical health diagnoses. The VCPDA also includes the processing of genetic and biometric data to identify an individual, the personal data of family members and detailed geolocation data.

Data protection to save your business

Because most privacy laws can be difficult to understand, the first line of defense to protect your business is to use proxies. The most important feature of a proxy is anonymity, which is often crucial for businesses. Marsproxys offers the largest proxy IP selection on the web. Having access to all these different proxies ensures that all of your information is anonymized online so it cannot be tracked.

This extra layer of security greatly reduces the risk of your organization unknowingly violating privacy laws, avoiding lawsuits and hefty fines. Proxies can also protect data from hackers. If you, as a business, are responsible for protecting and maintaining data from your consumers, then it would be wise to consider using a proxy.

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