In today’s digital era, concerns over protecting users’ data and privacy have become increasingly critical across the United States, prompting many states to enact comprehensive data protection and privacy laws to govern the collection, processing, sharing, and selling of users’ data while giving users more rights and control over their data.
Although Massachusetts does not yet have a comprehensive data privacy law in effect, it is in the process of enacting a comprehensive privacy law for the protection of residents’ personal information.
Even in the absence of a data privacy law, businesses in Massachusetts must ensure compliance with the appropriate federal, local, and sectoral regulatory and legislative framework. The following guide provides a cursory overview of the state's current data protection landscape and the primary considerations for businesses.
The Current State of Data Protection Laws in Massachusetts
Businesses operating in Massachusetts, despite the state not having a comprehensive law, must always astutely observe developments in privacy and data protection, while being cognizant of existing applicable laws and regulations.
For example, businesses operating in the healthcare industry dealing with Protected Health Information (PHI) of individuals must comply with the Health Insurance Portability and Accountability Act (HIPAA).
Similarly, businesses dealing with minors’ data must ensure that their practices are compliant with the Children’s Online Privacy Protection Act (COPPA), which is a federal law that focuses on protecting minors' personal data and sensitive personal data (under 13 years of age) across the United States.
In addition, businesses operating in the financial sector may be required to comply with the Gramm-Leach-Bliley Act (GLBA). Under the GLBA, financial institutions must inform customers about data-sharing practices and protect their sensitive data.
Best Practices for Businesses
Regardless of whether a comprehensive privacy law is in place, businesses in Massachusetts are advised to implement secure data handling practices. This helps to foster customer trust, strengthen commercial relationships, while ensuring long-term compliance. The following best practices can assist businesses in meeting their obligations under all applicable state, local, and federal laws:
- Create a comprehensive inventory of all data assets. This enables organizations to attain a clear picture of what personal data is collected, where it is stored, and the lawful basis for its processing.
- Strategise and ensure implementation of optimal technical, physical, and administrative measures for data security.
- Conduct training and awareness sessions to educate employees about secure data handling and privacy protocols, while maintaining robust documentation to demonstrate compliance.
- Obtain explicit, opt-in consent from customers for the use of their data, particularly for sensitive information and targeted advertising.
Conclusion
Businesses can efficiently navigate the complex and constantly changing privacy legal landscape by adhering to industry-wide best practices, understanding current legislation, and building their capacity to ensure swift adaptation to potential developments.
