What Do Data Protection & Privacy Have To Do With Starting A Business? 

EVERYTHING!

If you are starting a business this year –no matter what your business entails– privacy and data protection must be one of your top priorities!

Because the U.S. does not have a comprehensive privacy and data protection law, most businesses are left having to figure out which state laws affect their business operations and what measures they need to have in place to comply.

It is a best practice to have the following policies and procedures tailored to your business in place before launching your business to the public:

Privacy notice & Privacy policy

A privacy notice is an outward-facing document to inform consumers and the public of what type of information your business regularly collects and the measures you take to protect that information. Generally, it is a good idea to have a link to this policy somewhere on the homepage of your website or mobile app, so that it is easily accessible.
A privacy policy is an inward-facing document to your employees about how the company handles data and personal information, especially personal identifiable information (PII). This document should notify your employees about how to securely store information and to limit access to personal identifiable information. This document should be provided to every employee and be easily accessible to employees.

Data mapping and data protection procedures

Take the time to know where your data is stored and create a map of the company’s data, including customer information. Put the right controls in place to limit who has access to personal identifiable information or other sensitive information. Not all employees need access to all information.

Incident response plan

Unfortunately, cyber attacks are frequent and you may be faced with a data breach at some point. While you may have great security measures in place and good policies, data breaches are inevitable, so you must be prepared and have a plan in place. This plan will outline the steps to notify key employees and persons in control, mitigation efforts to employ to control the breach, and communication requirements to customers and regulators.

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This is provided as informational only and is not legal advice. Please note that you should consult with an attorney to provide tailored advice to comply with the laws applicable to your business.

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