What are the obligations of companies when transferring customer data?
In Virginia, companies have certain obligations when transferring customer data. The Virginia Data Protection Act requires that companies secure customer data, meaning they must take reasonable steps to prevent unauthorized access to the data. Companies must also provide notice to customers when transferring their data and give customers the right to opt-out of the transfer. Companies must also take steps to ensure that companies to which the data is transferred will also provide reasonable security for that data. If a company is transferring data to a third party, it must make sure that the third party has appropriate security measures in place to protect the data. Companies must also take reasonable steps to ensure that the companies to which they are transferring data are actually authorized to have the data. Companies must make sure that the company with whom the data is being transferred has a valid agreement in place to use the data. This agreement must be in writing and must clearly outline the purposes for which the data may be used. Finally, companies are obligated to inform customers if any of their data has been compromised. If there is a breach of data, companies must take steps to contain the breach and inform customers of the breach as soon as possible. Companies must also take steps to minimize the potential damage of a data breach.
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