Privacy is a complicated issue for businesses

 

With identity theft surfacing as a major problem worldwide and businesses being warned that they could be liable if personal information is not protected, California state government has emerged as one of the leaders in privacy protection.

The goal is not only to protect California’s databases from identity theft, but also to help residents learn how to protect themselves.

Beginning Jan. 1, California merged its Office of Privacy Protection with the state’s Information Security Office to form the Office of Information Security and Privacy Protection, which is headed by Joanne McNabb, who has been with the Office of Privacy Protection since 2001. Her new job focuses on combating electronic identity theft and helping businesses learn about the latest protection technology available.

 

One of McNabb’s principal contacts to achieve this goal has been Beth Givens, director of the Privacy Rights Clearinghouse, a non-profit agency based in San Diego. In fact, McNabb calls Givens her “most inspirational person.”

Givens has been working in the consumer-protection industry since 1992 and thinks the new state agency has “tremendous potential” as long as it works to protect privacy as well as information.

Since 2003, California has led other states on issues concerning data privacy and businesses.

Financial institutions are required to contact consumers if personal information is compromised under a law that applies to all firms that do business with residents of California. Since then, other states have passed similar laws.

 

Last October, Gov. Arnold Schwarzenegger vetoed a bill that would have made merchants responsible for reissuing credit cards if there were privacy issues with consumers. The new state agency, however, should be a better solution for the growing problem, Givens said.

In an effort to help businesses protect consumers’ privacy, Givens has written or co-authored several books, including “The Privacy Rights Handbook: How to Take Control of Your Personal Information,” published in 1997 by Avon, and “Privacy Piracy: A Guide to Protecting Yourself from Identity Theft,” released in 1999.

She also maintains a website, www.privacyrights.org, which McNabb’s office uses on a regular basis. Givens also has traveled to Sacramento to brief McNabb on privacy issues.

Givens provides consumer help and information for business owners online as well as through personal consultation.

 

Because privacy extends to the international market, some business owners need to know applications that affect their dealings in other countries.

Along this line, a book recently released with information about international business and privacy is “The War on Privacy,” by attorney Jacqueline Klosek. Published in 2007 by Praeger Publishers, a division of Greenwood Publishing Group of Westport, Conn., the book details privacy problems on several levels from a business perspective.

The book also identifies problems individuals and businesses face with the passage of the USAPATRIOT Act, which allows government agencies to collect information that might pertain to the international war on terror.

 

Klosek explained that private industry faces a precarious balance trying to maintain consumer privacy while complying with government demands for information.

“This issue is not going to just disappear,” said Klosek. “The war on terror has reduced privacy rights in the United States and around the world. The bottom line is whether the feds are leaning on your company for records or you’ve suffered a security breach by hackers, your reputation is at stake and you’ve lost your customers’ trust.”

 

In addition to advising businesses to follow all privacy measures required by law, Klosek offers other tips, such as:

1. Conduct an internal audit – decide on your business’ privacy policies, then what data should be collected, what can be shared and what needs to be protected;

2. Develop a privacy policy – a company privacy policy needs to clearly state how the company can be contacted if there are concerns;

3. Be broad – this gives greater latitude if there is a need to hand over data or the business faces corporate restructuring, mergers and acquisitions;

4. Plan ahead – avoid making a strong privacy promise to consumers that governmental demands will not allow;

5. Seek prior consent – this allows potential personal data transfers that could be subpoenaed by the government; and

6. Protect the business website – implement a web monitoring program that automatically scans data to ensure that privacy measures remain intact.

 

Because of California’s focus on privacy issues, both locally and on an international level, the International Association of Privacy Professionals awarded the state’s Office of Privacy Protection a certificate last December for its contribution to consumer privacy.

“The California privacy office is a truly innovative approach to consumer protection and business outreach,” remarked an Innovation Award judge.

“There is no other state with the same level of outreach, experience and resources aligned to this topic. A business may not always like a particular privacy-related law, but the level of guidance and support given is unmatched,” the judge said.

Responding to the achievement, McNabb said, “We are honored to receive this award and proud to be contributing to California’s leadership role in protecting consumer privacy.”

 

In an continuing effort to assist leaders from business, government, law enforcement, education and community groups, McNabb’s office has scheduled a two-day conference Mar. 4-5 at the Marriott Hotel and Convention Center at the Burbank Airport on cyber safety, privacy and identity theft, co-sponsored by the California Department of Consumer Affairs, the California Office of Privacy Protection and the State and Consumer Services Agency.

The program includes panel discussions and workshops.

Topics at the workshops include protecting card data, privacy breach response, Internet safety, computer viruses, safe social networking practices, and medical identity theft. To attend or read about the event, visit www.cybersafety.ca.gov.