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Business collect all sorts of information about customers, from basic contact information like names and addresses to credit reports and shopping habits. The Federal government enforces a variety of laws related to consumer privacy and the use of personal information, but those laws don't apply to all businesses. In some cases, companies can sell or give away your contact information.
Consumer Privacy Basics
Federal laws generally do not restrict how businesses can use your personal information. A company can choose to create a privacy policy as a pledge to consumers about how it plans to use personal information, but doing so is not required by law. In other words, companies are typically free to sell your contact information and other data that they collect. The law does, however, prohibit deceptive privacy practices such as misleading consumers with statements in a privacy policy.
Financial Companies
Financial companies face a variety of federal restrictions on how they can use your personal information. According to the Federal Trade Commission, the Gramm-Leach-Bliley Act requires financial institutions to ensure the security and confidentiality of names, addresses, and phone numbers, bank and credit card account numbers, income and credit histories and Social Security numbers. Financial institutions include any business significantly engaged in providing financial services like banks, check-cashing businesses, payday lenders, mortgage brokers and real estate appraisers.
Protection For Children
The Federal government has laws in place aimed at protecting children from businesses that gather consumer information on the Internet. The Children's Online Privacy Protection Act requires commercial web sites and other online services aimed at children under 13 to notify parents of information practices and receive parental consent before collection personal information from children. Parents also have the right to look at and correct information such sites collect about their children.
Health Information
Although general contact information is not always safe in the hands of businesses, the government does provide some protections regarding personal health information through the Health Insurance Portability and Accountability Act. The Act requires health insurance companies and providers of health care services to keep health information confidential. Certain institutions, such as companies, life insurers and schools, do not have to comply with the HIPAA privacy and security rules.
Consumer Privacy Basics
Federal laws generally do not restrict how businesses can use your personal information. A company can choose to create a privacy policy as a pledge to consumers about how it plans to use personal information, but doing so is not required by law. In other words, companies are typically free to sell your contact information and other data that they collect. The law does, however, prohibit deceptive privacy practices such as misleading consumers with statements in a privacy policy.
Financial Companies
Financial companies face a variety of federal restrictions on how they can use your personal information. According to the Federal Trade Commission, the Gramm-Leach-Bliley Act requires financial institutions to ensure the security and confidentiality of names, addresses, and phone numbers, bank and credit card account numbers, income and credit histories and Social Security numbers. Financial institutions include any business significantly engaged in providing financial services like banks, check-cashing businesses, payday lenders, mortgage brokers and real estate appraisers.
Protection For Children
The Federal government has laws in place aimed at protecting children from businesses that gather consumer information on the Internet. The Children's Online Privacy Protection Act requires commercial web sites and other online services aimed at children under 13 to notify parents of information practices and receive parental consent before collection personal information from children. Parents also have the right to look at and correct information such sites collect about their children.
Health Information
Although general contact information is not always safe in the hands of businesses, the government does provide some protections regarding personal health information through the Health Insurance Portability and Accountability Act. The Act requires health insurance companies and providers of health care services to keep health information confidential. Certain institutions, such as companies, life insurers and schools, do not have to comply with the HIPAA privacy and security rules.
Posted in: Business Laws
