|
|
|
Printable version  |
Federal and state laws are becoming more stringent when it comes to the information you can share about your customers.
For example, California and other states have adopted strict privacy-protection laws. In addition, new federal privacy provisions have been
|
For Sale on the Internet Technology has facilitated the ability to
access high quality fake identification tools such as driver’s licenses, birth certificates, and Social Security cards. The ease of creating authentic-looking counterfeit documents and obtaining confidential information has prompted consumer groups to call for stronger protection.
To show how privacy is at risk, the California-based Foundation for Taxpayer and Consumer Rights announced that it paid $26 each to obtain information about top Bush administration officials over the Internet. The not-for-profit group said it purchased Social Security numbers and other personal information for CIA Director George Tenet, Attorney General John Ashcroft, Labor Secretary Elaine Chao, FTC Commissioner Timothy Muris, and chief political adviser Karl Rove. (Information about President Bush was not for sale, the group added.) | adopted as part of the Health Insurance Portability and Accountability Act.
One reason these and other laws have been enacted: The exponential growth of identity theft using computers and the Internet. Another reason: Companies want to buy demographic information more easily and send customer files to data-mining companies that specialize in profiling. This lets businesses anticipate what particular customers might want to buy or do.
The laws differ in their nuances, but the main focus is to protect personal information and to restrict how you share the data — inside and outside of your company. In some cases, the laws allow companies to ask customers if they can share data. Others let businesses share information as long as customers are given the opportunity to opt out. In other words, if the customer doesn’t opt out, you can share the data.
With so many different laws, it’s hard to keep up. But with the help of your attorney, you can institute a policy for your firm that can help avoid violations of privacy. Here are five considerations:
1. Communications to customers should not disclose the names of other customers without their permission.
2. Messages containing private and confidential information should only be used on a need-to-know basis. They shouldn’t be broadly distributed, forwarded, or shared inside or outside the organization.
3. If you send or receive e-mail messages internationally, you must be aware of the laws governing confidentiality in the countries where the other e-mail systems are located.
4. When responding to customer inquiries, disclose the relevant employees' names, titles, telephone numbers and business functions.
5. Forwarded e-mails should not be altered. Changes can invalidate the authenticity of the original messages.
While owners or managers can be very good about keeping data private, it’s important to restrict access to customer information so that line-level employees and others don’t mistakenly divulge data.
Final Note: Because of the complexity of the laws governing data sharing, companies need legal guidance. Contact our firm for more information.
This article is provided as a service by: L.S. Sherman Litigation Consulting.
LSSLC is a group of complex litigation specialists helping attorneys prepare successful complex litigation through the management of detailed technical information and engagement of experienced testifying experts of unsurpassed quality.
Contact Linda Sherman: 610-642-7755
|
|
|
|
 |
|
LSSLC, LLC provides the information in this newsletter for general guidance only, and does not constitute the provision of legal advice or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation.
The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
|
|
|
Full Newsletter
