Jurisdictions across the U.S. are increasingly passing comprehensive data privacy laws to address growing concerns over personal data and consumer privacy. While many states now have such statutes, Pennsylvania does not currently have one. To stay updated on the progress of privacy-related bills across the US, visit our US State Privacy Laws Tracker.
Even without a data privacy law, businesses in Pennsylvania must maintain strict privacy operations. This ensures compliance with changing privacy standards and prepares them to adapt to future regulations.
The following guide provides an overview of the state's current data protection laws and the primary considerations for businesses.
The Current State of the Data Protection Laws in Pennsylvania
Businesses must stay up to date on applicable state and federal laws.
Breach of Personal Information Notification Act (BPINA) (73 P.S. § 2301 et seq.): This law requires private entities to notify affected Pennsylvania residents without unreasonable delay after a breach.
Insurance Data Security Act (40 Pa.C.S. Ch. 45; Act 2 of 2023): According to this law, insurance “licensees” must maintain an information security program, investigate cybersecurity events, and notify the Insurance Commissioner of qualifying events.
Unfair or Deceptive Acts and Practices (UTPCPL, 73 P.S. §§ 201-1 et seq.): This law outlines enforcement actions against misleading privacy notices and deceptive data practices.
Applicable Federal Laws
Depending on your industry and data, federal frameworks continue to set the floor:
- Health Insurance Portability and Accountability Act (HIPAA) for protected health information handled by covered entities and business associates.
- Children’s Online Privacy Protection Act (COPPA) for online data about children under 13.
- Gramm-Leach-Bliley Act (GLBA) for financial institutions’ customer data.
- Fair Credit Reporting Act (FCRA) for data collected or used for consumer credit scoring.
Best Practices for Businesses
Businesses operating in Pennsylvania are encouraged to ensure safe data protection and privacy practices. Regardless of the presence or absence of any comprehensive privacy law, ensuring safe data handling practices helps with compliance in the long run and strengthens the trust of customers in the organization. A few best practices have been outlined as follows:
- Enabling data mapping automation to understand data flow to different systems across the environment. This helps track data quality and lineage and see what transformations the data underwent throughout its lifecycle.
- Implementing optimal data security measures that deploy administrative, technical, and physical safeguards.
- Maintaining a tested incident response plan aligned with BPINA, including Attorney General and consumer reporting agency notifications when thresholds are met.
- Providing customers or users with clear privacy notices and meaningful choices; obtaining consent where required, and avoiding deceptive statements that could trigger UTPCPL enforcement.
- Establishing workflows for rights requests where required by sectoral or contractual obligations.
- Delivering training and awareness sessions to educate employees, especially those with access to sensitive data, about safe data handling and cybersecurity hygiene.
Conclusion
Organizations can efficiently navigate the complex privacy legal landscape by adhering to best practices and investing resources in learning and understanding applicable laws. Pennsylvania’s breach notification statute, insurance cybersecurity law, Social Security number protections, Right-to-Know exemptions, and UDAP enforcement create real obligations today while the Commonwealth continues to consider broader privacy legislation.
