What are the data protection laws that apply to e-commerce businesses?
In Kansas, e-commerce businesses must abide by the same data protection laws as any other business. These laws are designed to protect the privacy of customers’ personal and financial information. The most well-known data protection law in the United States is the Health Insurance Portability and Accountability Act (HIPAA). This law sets standards for the protection and confidential handling of protected health information (PHI). It requires that companies store and transmit PHI using proper protocols to safeguard customer data. The Gramm-Leach-Bliley Act (GLBA) is another data protection law that applies to e-commerce businesses. The GLBA requires that financial institutions disclose how they use customer data and give customers the opportunity to opt-out of certain uses of their data. In addiiton, the Fair Credit Reporting Act (FCRA) also applies to e-commerce businesses. This law requires companies to take reasonable steps to protect customer data from unauthorized access or disclosure. The FCRA also requires companies to have procedures in place to notify customers in the event of a data breach. Finally, the Children’s Online Privacy Protection Act (COPPA) requires websites and online services that are directed to children under the age of 13 to obtain parental consent before collecting, using, or disclosing the child’s personal information. All e-commerce businesses operating in the state of Kansas must comply with the above data protection laws. Failure to comply could result in penalties, fines, and potential lawsuits.
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