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What Are Data Privacy Laws, and Why Are They Important?

by Ellen
September 14, 2022
in Tech
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data subject access requests
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Thanks to rapid digitalization, people with ill intentions do not need to be in front of someone to commit a crime. They can do it very easily through the internet.

Also called cybercrime, the rate of illegal activities using the internet has been on the rise. In the US, almost 59% of people are affected by it every year. Meanwhile, the UK recently recorded an increase of 40% in cybercrime!

No wonder, governments have vigorously started working on data privacy laws, from the right to be informed to the right for data subject access requests. But why are these laws important to your business? Let’s have a look!

Table of Contents

  • What Are Data Privacy Laws?
  • Current Data Privacy Laws
    • GDPR
    • CRPA
  • The Importance of Data Privacy Laws

What Are Data Privacy Laws?

Data privacy laws refer to government-imposed policies that revolve around data protection. In simple terms, these laws restrict the personal data collection and handling methods of businesses.

They give people the right to know what data has been collected, why it is collected, and how it will be processed. However, the exact rules are different throughout the world.

Current Data Privacy Laws

GDPR

GDPR (General Data Protection Regulation) is the data security legislation in the EU. It was introduced in 2018 and has cost several big companies millions of dollars. According to GDPR, consumers have the:

  •     Right to be informed
  •     Right to rectification and erasure
  •     Right to data portability
  •     Right to object and restrict processing
  •     Right around the automated decision-making and profiling
  •   Right to make data subject access requests

All these rights can be demanded verbally or in writing throughout the European Union. It means businesses have to adapt themselves to meet these requirements and avoid heavy fines.

CRPA

The CRPA (California Rights Protection Act) is the most popular data security law imposed in the US. It is a collection of consumer rights and business policies that ensure people are safer. Here are the major points of it:

  •     It gives permission to stop companies from sharing their personal data without consent.
  •     It gives the right to rectify false and inaccurate data.
  •     It allows the right to restrict the use of personal information.
  •     The CPPA (California Privacy Protection Agency) will ensure the implementation of the laws and fine all those guilty.
  •     It prohibits companies to retain and withhold personal data once the purpose is served.

Similar to this, the US has several different privacy laws on different levels. A few examples include HIPAA and PCI DSS.

The Importance of Data Privacy Laws

Perhaps, the importance of data privacy laws is quite evident now for both businesses and consumers. These laws give people greater control over how their data is handled and processed. They can speak up against any illegal and wrong activities.

As for businesses, these data protection laws signal the shift of the entire system. Databases need to be updated with features that help quick data identification and erasure. Employees need to be educated about how to handle these requests and whatnot.

However, on the brighter side, complying with the data privacy laws is helping businesses secure themselves. Nothing can be worse than a data breach by a hacker, and these laws help prevent exactly that.

Tags: data subject access requests
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