This page is designed to give a brief overview of different laws and regulations relevant to the data industry.
General Data Protection Regulation (GDPR)
The General Data Protection Regulation (GDPR) is a comprehensive data protection law enacted by the European Union (EU). It applies to any organization worldwide that processes the personal data of individuals within the EU. The GDPR aims to protect the personal data of EU citizens, ensuring their privacy and giving them greater control over their information.
Key Aspects:
Scope: Applies globally to any organization handling the data of EU citizens.
Protected Data: Includes names, contact information, IP addresses, and any identifiable information.
Fines: Violations can result in fines of up to €20 million or 4% of the organization's global annual revenue, whichever is higher.
California Consumer Privacy Act (CCPA)
The California Consumer Privacy Act (CCPA) is a state law designed to protect the personal information of California residents. It sets guidelines for businesses that collect personal information and meet specific criteria, such as having annual gross revenues exceeding $25 million. The CCPA serves as a model for other privacy laws in the United States.
Key Aspects:
Scope: Applies to businesses that collect personal information from California residents and meet certain thresholds.
Protected Data: Includes names, contact numbers, IP addresses, demographics, financial information, browsing history, and geolocation data.
Fines: Range between $100 - $750 per user per violation, or higher if actual damages are greater. Users also have the right to sue businesses for data breaches resulting from inadequate security.
Health Insurance Portability and Accountability Act (HIPAA)
The Health Insurance Portability and Accountability Act (HIPAA) is a federal law in the United States that governs the healthcare industry. It ensures the protection of users' identifiable health information, such as medical records and other health-related data. HIPPA began with general health information and naturally evolved as data became more prevalent.
Key Aspects:
Scope: Applies to the healthcare industry in the United States.
Protected Data: Includes medical records and other identifiable health information.
Fines: Violations can result in both civil and criminal penalties, with fines varying based on the severity of the infraction.
These three regulations GDPR, CCPA, and HIPAA represent efforts to protect personal data and ensure privacy. GDPR provides a broad and stringent framework for data protection in the EU, CCPA offers a robust privacy model for California residents influencing other US laws, and HIPAA focuses on safeguarding health information within the US healthcare system. Understanding and complying with these regulations is crucial for organizations handling personal data to avoid substantial fines and legal consequences.
U.S. Department of Health & Human Services. (n.d.). Summary of the HIPAA Privacy Rule. Retrieved from https://www.hhs.gov/hipaa/for-professionals/privacy/laws-regulations/index.html
California State Legislature. (2018). California Consumer Privacy Act of 2018. California Civil Code, Division 3, Part 4, Title 1.81.5.
European Parliament and Council of the European Union. (2016). Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation). Official Journal of the European Union, L119, 1-88.
Passed March 13, 2024, The EU Artificial Intelligence Act (AI Act) is the worlds first comprehensive legal framework for AI. The AI Act categorizes artificial intelligence into risk levels which have their own limitations. The risk levels in the AI Act are Unacceptable Risk, High Risk, Limited Risk, and Minimal Risk. Like the General Data Privacy Act (GDPR) the AI Act applies to all providers who place or put services into the EU market, including those who are outside of the EU.
Unacceptable Risk
Unacceptable risk includes AI systems that pose a clear threat to fundamental rights, and are completely prohibited. Systems that manipulate human behavior, exploit vulnerabilities, or use biometric data for categorization based on sensitive characteristics like race or political opinions would be considered an unacceptable risk.
High Risk
High risk systems are considered systems used in critical infrastructure, medical devices, and those determining access to education or employment. High risk systems must comply with certain requirements, including risk mitigation, high-quality data sets, logging activities, detailed documentation, user information, human oversight, and robust cybersecurity measures.
Limited Risk
Providers are required to inform users that interact with AI systems such as chatbots are informed as such when doing so. This includes AI systems that generate or manipulate deepfakes, which must discolse that the content has been manipulated.
Minimal Risk
There are no limitations for minimal risk AI systems, such as AI-enabled video games or spam filters. Companies may commit to a volantary codes of conduct.
Wilmer Hale. (2024, March 14). The European Parliament adopts the AI Act. WilmerHale Privacy and Cybersecurity Law. Retrieved from https://www.wilmerhale.com/en/insights/blogs/wilmerhale-privacy-and-cybersecurity-law/20240314-the-european-parliament-adopts-the-ai-act