Navigating New Internet Privacy Laws & Penalties

Navigating the complex web of internet data privacy laws is not for the faint-hearted, but if you’re a small business website owner, it’s vital. Before you get caught up in a potentially expensive and reputation-damaging lawsuit, it’s time to take privacy and data protection seriously. Any business owner can be sued for missing or inaccurate privacy policy or “terms of use” pages on your website since multiple laws have been passed.

It’s important to comply with new internet data privacy laws like CIPA and GDPR to safeguard your business and protect your customers’ information.

The Importance Of Data Privacy & Compliance

Here’s the lowdown – in today’s digital world, personal data is incredibly precious. From contact details to browsing history, this data fuels business decisions and strategies. Mishandling it can leave a business owner vulnerable to serious legal problems under laws like the California Invasion of Privacy Act (CIPA) and the General Data Protection Regulation (GDPR).

Internet Data Privacy Laws To Know About

Internet data privacy laws are crucial for protecting personal information online. These laws vary significantly across different jurisdictions, but there are several key legislations globally that set the standards for data protection regarding websites.

Below are some of the most influential data privacy laws and the potential penalties for non-compliance:

1. General Data Protection Regulation (GDPR) – European Union

Key Points

• Applies to all organizations operating within the EU and organizations outside the EU that offer goods or services to, or monitor the behavior of, EU data subjects.
• It emphasizes transparency, security, and accountability by data processors, while giving individuals control over their personal data.
• Includes provisions for data subject rights such as the right to access, right to be forgotten, and right to data portability.

Penalties

• Non-compliance can result in fines up to approximately $22 million USD or 4% of the annual global turnover of the preceding financial year, whichever is higher.
• Penalties are tiered based on the nature of the violation, with less severe breaches facing lower fines.

2. California Consumer Privacy Act (CCPA) – United States

Key Points

• The California Consumer Privacy Act (CCPA) applies to any for-profit business that collects consumers’ personal data, which does business in California, and satisfies at least one of the specified criteria regarding revenue, data volume, or revenue from data.
• Allows consumers to see all the information a company has saved on them, along with a full list of third parties their data is shared with.
• Consumers can sue companies if the privacy guidelines are violated, even if there is no breach.

Penalties

• Companies can be fined up to $7,500 USD per intentional violation and $2,500 USD per unintentional violation if not cured within 30 days of notification.
• Consumers can also seek damages of between $100 and $750 USD per incident, or actual damages, whichever is greater.

3. California Online Privacy Protection Act of 2003 (CalOPPA)

Key Points

• Requires operators of commercial websites and online services that collect personal information from California residents to conspicuously post a privacy policy on their site.
• The privacy policy must detail the types of information gathered, how it is shared, and the process users can follow to review and make changes to their stored information.

Penalties

• Failure to comply with CalOPPA can result in fines of up to $2,500 USD per violation, which can be interpreted as per website visit where non-compliance is evident.
• Enforcement is carried out by the California Attorney General.

4. Nevada SB 220, Amending NRS 603A.340

Key Points

• Nevada SB220 amends existing law to require operators of websites and online services to provide a privacy notice and to offer consumers a mechanism to opt-out of the sale of certain personal information.
• Applies to any business that operates in Nevada or collects data from Nevada residents.

Penalties

• Non-compliance can lead to injunctions and penalties, although specific monetary fines are not detailed in the statute. Enforcement falls under the jurisdiction of the Nevada Attorney General.

5. Virginia Consumer Data Protection Act (VCDPA), VA S 1392

Key Points

• Similar to the GDPR, VCDPA provides consumers with rights concerning their personal data, including access, correction, deletion, and portability.
• Applies to businesses that control or process personal data of at least 100,000 consumers or derive over 50% of gross revenue from the sale of personal data and process or control personal data of at least 25,000 consumers.

Penalties

• Non-compliance can lead to enforcement actions by the Virginia Attorney General, with fines up to $7,500 USD per violation.

6. Oregon SB 619

Key Points

• Oregon SB 619 focuses on the protection of social security numbers and prohibits their unlawful disclosure.
• Requires businesses to develop reasonable safeguards to protect the security, confidentiality, and integrity of personal information, including social security numbers.

Penalties

• Violations can result in penalties of up to $7,500 USD per violation imposed by the Oregon Department of Justice. Fines are determined by the nature and extent of the harm caused by the violation.

7. Personal Information Protection & Electronic Documents Act (PIPEDA) – Canada

Key Points

• PIPEDA applies to private-sector organizations across Canada that collect, use, or disclose personal information in the course of a commercial activity.
• Includes principles of consent, limited collection, accuracy, accountability, and safeguards.
• Organizations are required to provide access to personal information on request and to correct inaccuracies.

Penalties

• Non-compliance can lead to fines up to approximately $74,000 USD for each violation.
• The Privacy Commissioner of Canada can make binding orders and award damages to complainants.

8. Data Protection Act (DPA) 2018 – United Kingdom

Key Points

• DPA controls how personal information is used by organizations, businesses, or the government.
• It is the UK’s implementation of the GDPR.
• Includes similar rights and principles as the GDPR.

Penalties

• Organizations can face fines up to approximately $21 million USD or 4% of global turnover, whichever is higher.
• It also includes provisions for significant penalties for non-compliance related to national security and law enforcement data.

9. The Information Technology Act (ITA-2000) – India

Key Points

• ITA-2000 primarily focuses on cybersecurity but also contains provisions to protect personal data.
• Includes penalties for data theft and hacking.
• Provides guidelines for companies to handle sensitive personal information.

Penalties

• Violations can lead to imprisonment ranging from a few years to life.
• Depending on the severity and nature of the breach, fines can range significantly, with some fines translating to several thousand USD. Specific conversions are challenging without exact figures, but significant breaches could have penalties upwards of tens of thousands of USD.

Examples Of Third-Party Tracking Technologies

Third-party tracking technologies are those nifty tools that sneakily gather user data while you’re busy running your business. They’re essentially the spies of the digital world, collecting valuable nuggets of information for all sorts of purposes, like marketing campaigns and website analytics.

Think of them as the unseen force working behind the scenes, providing insights that help tailor your advertisements, improve user experiences, and ultimately drive your brand’s success.

Next time you check your Google Analytics dashboard and marvel at the data, give a nod to those third-party tracking technologies doing the legwork.

• Cookies – Small data files stored on users’ computers to remember their preferences and track their browsing activities.
• Tracking Pixels – Tiny images embedded in emails and web pages that collect data on user interactions.
• JavaScript Snippets – Code used on websites to monitor user behavior and capture data.

Common Internet Data Privacy Violations By Small Businesses

Many small businesses often find themselves inadvertently violating data privacy laws. It’s easier than you think to slip up, especially when you’re juggling a million other tasks. From not properly securing customer data to failing to get explicit consent for marketing emails—these missteps can lead to some serious legal and financial consequences.

Let’s be real, no one wants to tangle with the law or lose their customers’ trust over something that could’ve been easily avoided. By staying informed and proactive, small businesses can ensure they’re not just compliant, but also building a rock-solid reputation for protecting customer data.

• Failing To Obtain User Consent – Not getting explicit permission before collecting personal data (CIPA / GDPR).
• Improper Data Handling – Storing or processing data in ways that do not comply with legal requirements.
• Ineffective Disclosures – Not providing clear and comprehensive privacy policies on your website.

Key Steps for Data Security & Privacy Compliance

• Conduct a Data Audit: Identify collected personal data and third-party tracking scripts.
• Use Data Minimization – Only collect data that is necessary for a purpose.
• Create A Comprehensive Privacy Policy – Detail what data you collect, how you use it, and who you share it with.
• Get Explicit Consent From Visitors – Ensure users can easily provide and withdraw consent of data collection.
• Ensure Secure Data Storage – Use encrypted storage and secure access methods.
• Provide Training: Ensure your team understands data privacy laws and how to avoid violating these laws.
• Identify & Address Non-Compliance Areas: Use tools or experts to find and fix issues.
• Perform Regular Compliance Checks: Schedule regular reviews to ensure ongoing compliance.
• Develop a Data Breach Response Plan: Have a plan in place for quick and effective breach handling.
• Prepare for GDPR Compliance (European Traffic): Appoint a DPO, ensure user rights, and document data processing activities.

Staying Ahead Of Global Data Privacy Compliance

Global data privacy compliance is an ongoing task. Stay ahead by regularly reviewing and updating your privacy policies and practices. Stay informed and keep an eye on data privacy laws globally to ensure compliance.

More Privacy Laws Are On The Way

• Colorado – SB190
• Hawaii – Senate Bill 418
• Illinois – House Bill 3358
• Massachusetts – Bill S.120
• Minnesota – HF2817/SF2912
• New Jersey – S2834
• New York – SB s5642
• Pennsylvania – HB1049
• Rhode Island – H5930
• Washington – Senate Bill 5376

An “Easy Button” Solution To Data Privacy Compliance

Don’t let the fear of data privacy lawsuits or penalties keep you up at night. Empower your business with a solid data privacy strategy and sleep easy. If you’re ready to take your data privacy compliance to the next level, contact Site Smart Marketing. We offer an automated solution that auto-updates as new laws are passed to help you avoid frivolous lawsuits.

We help large and small business owners across the USA stay legally compliant with Privacy Policy Automation.