History of Data Privacy in the United States
The United States does not have a comprehensive law governing data collection, protection and privacy. Instead, there is a system of federal and state laws that govern particular sectors and types of personal information. The following discusses some of the important events in privacy in the United States as well as some of the key laws adopted by federal and state governments to protect privacy.
Benjamin Franklin’s Postal Service
Some of the earliest privacy measures in the United States were implemented by Benjamin Franklin, who sought to maintain privacy in mailed items during the 1700s by locking the postal carriers’ saddle bags, which were only unsealed at their destination.
No discussion of privacy in the United States would be complete without a discussion of the Fourth Amendment of the U.S. Constitution, which offers the people the right to be secure against unreasonable searches and seizures by the Government. It developed from the notion of privacy in English common law that a person’s home is his or her castle
Although the Constitution does not specifically mention privacy, Justice William Douglas writing for a majority in the Supreme Court in Griswold v. Connecticut (1965), found that there is a right to privacy within the penumbra of rights provided through the Constitution, even though it is not specifically identified in one of the amendments.
The transmission of messages over the telegraph in the 1800s brought additional privacy concerns. Initially, there was a certain level of privacy because users needed to know morse code in order to understand messages sent over the telegraph. Later, users began further coding their messages with ciphers in order to encrypt them and limit surveillance of their communications.
Fair Information Practices
In the 1970s, the U.S. Department of Health, Education and Welfare proposed a set of safeguards to address the lack of protections under the law. A set of principles of privacy were set forth in the HEW Report, called Records, Computers and the Rights of Citizens: report of the Secretary’s Advisory Committee on Automated Personal Data Systems. These core practices were built upon by the Organization for Economic Cooperation and Development (OECD) when it created a set of Fair Information Practices in the OECD Guidelines on the Protection of Privacy and Transbroder Flows of Personal Data.
The Health Insurance Portability and Accountability Act is perhaps the best known privacy law in the United States. It is the primary federal law governing sensitive health information. Among other things, HIPAA regulates the use and disclosure of protected health information by covered entities such as health insurers, employer sponsored health plans and certain medical service providers. Protected health information, or PHI, is broadly interpreted to include andy part of a medical record or health care provision that can be linked to an individual.
The Family Educational Rights and Privacy Act was enacted in 1974 and covers access to school records. It provides parents and students with the right to inspect their information, request corrections, and control the disclosure of some personally identifiable information. The law applies to all schools receiving federal funds through the U.S. Department of Education.
The Telephone Consumer Protection Act of 1991 was a consumer protection measure against companies engaged in telemarketing. The FCC regulations impose financial penalties on commercial telemarketers for calling phone numbers on the “Do-Not-Call” registry. Although it is not an online data privacy law, it is perhaps one of the best known privacy laws in the United States.
The Federal Trade Commission is the nation’s primary enforcement agency for data privacy and security. The legal authority for its actions usually comes from Section 5 of the Federal Trade Commission Act, which prohibits unfair or deceptive practices in the marketplace. The FTC also has the ability to obtain civil monetary penalties through a number of statutes and rules implicating privacy, such as the Fair Credit Reporting Act and the Telemarketing Sales Rules. The FTC has brought enforcement actions in the past on a wide range of privacy issues, including spam, social networking, behavioral advertising, pretexting, spyware, peer-to-peer file sharing and mobile.
The California Electronic Communications Privacy Act requires state law enforcement to get a warrant before they can access electronic data on a device or from an online service provider. The ACLU called it a landmark victory for digital privacy when it was passed in 2015.
The Delaware Online Privacy and Protection Act, which went into effect on January 1, 2016, strictly regulates advertising directed at children, enhances the privacy protections of digital book readers, and requires conspicuous posting of privacy policies that complies with the laws mandates.
Social Media Privacy
Many states, including Utah, California, Delaware, Illinois Maryland, Michigan and New Jersey have adopted restrictions on employers with respect to social media accounts. Utah’s Internet Employment Privacy Act, for example, prohibits requests of employees or applicants to disclose user names or passwords to personal social media accounts.
Internet Service Provider Privacy
Nevada and Minnesota require internet service providers to keep certain information about their customers private. In response to the Federal Communication Commission’s repeal of restrictions on the use of data by internet service providers, many states have introduced measures to put additional restrictions on what these businesses can do with collected consumer data.
Many states have enacted laws that govern the disposal of digital and paper records containing personal information. According to an article published in December 2016 on the website of the National Conference of State Legislatures, at least 32 states and Puerto Ricos have laws regarding such information to be made unreadable or undecipherable.
Data Security and Breach Disclosure
A number of states have laws requiring the protection of personal data. Arkansas’ Personal Information Protection Act, for example, requires the implementation of reasonable security procedures and practices to protect personal information against unauthorized access, disclosure, modification, use or destruction.
Edward Snowden and the NSA
It would be hard to have a discussion of the history of privacy in the U.S. without mentioning the revelations in June 2013 concerning the National Security Agency’s domestic collection of intelligence from internet and communications companies. While an employee of government contractor Booz Allen & Hamilton, Edward Snowden disclosed to the media that the NSA collected information on phone records of millions of Verizon customers daily. Snowden also revealed that the NSA had a program, called PRISM, which gave them direct access to servers at the U.S. tech companies of Google, Facebook, Apple and Microsoft.
Facebook lost more than $100 million in market capitalization in the ten days after the release of news that Cambridge Analytica collected information about more than 50 million Facebook users.
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