Privacy Laws Limit Companies' Use of Customer Data, Protecting Consumers
Privacy laws restrict companies from collecting, using, and sharing personal information. Data security laws protect customer data from hackers, while privacy laws limit how companies can use that data. The Federal Trade Commission Act and various federal and state laws regulate privacy, such as the California Financial Information Privacy Act. This law requires companies to get permission from customers before sharing their data with outside parties. California also has laws like the Online Privacy Protection Act, Shine the Light law, and the "Eraser Button" law that impose requirements on companies regarding personal information.