Understanding Privacy Laws

It is becoming commonplace for companies, particularly online businesses, to post privacy policies that describe how consumers' personal information is collected, used, shared, and secured. While not required by law, creating a privacy policy is important if you want people to buy your products, particularly if you involved in e-commerce. A privacy policy is not just lip service to your customers. You need to make sure your business follows the policy by implementing reasonable security measures to protect your customer's data. Failure to follow your business' own privacy policy can result in costly legal fees.

Using its authority under The Federal Trade Commission Act, which prohibits unfair or deceptive practices, the Federal Trade Commission (FTC), enforces companies' privacy policies about how they collect, use and secure consumers' personal information. The FTC provides the following resources the help you develop privacy policies that take reasonable steps to secure your customer' data:

• Federal Trade Commission : Privacy Initiatives
  This comprehensive guide to privacy laws explains the importance protecting and securing personal information. It includes guidance for businesses, which explains how to comply with privacy laws, including the Fair Credit Reporting Act, Gramm-Leach-Bliley Act, and the Children's Online Privacy Protection Act.
• Protection Personal Information : A Guide for Businesses
  Practical advice for protecting and securing sensitive, personal information.