Business-Minded Legal Solutions

Legal requirements for protecting customer information

Data privacy and security are important considerations for businesses that collect and store customer information.

Texas has laws specifically pertaining to the protection of customer data from unauthorized access, use or disclosure. Understanding these requirements can allow businesses to comply with the law, maintain customer trust and avoid potential problems.

Obtain consent

Businesses must obtain customer consent before collecting or using their data. Not only do they have to ensure the person is willingly providing their personal information but also, the business must make sure the customer understands why the business is collecting the information. Businesses must clearly explain how they will use the data and obtain consent for each specific use.

Use security measures

Businesses must implement security measures to protect customer data from unauthorized access or disclosure. This includes using encryption, firewalls and other security technologies to protect data from hackers and other threats. Businesses must also regularly review and update their security measures to address new threats and vulnerabilities.

Comply with laws

Businesses must comply with data breach notification laws, which require them to notify customers and regulators in the event of a data breach. This notification must be timely and provide specific information about the breach. This includes reporting the exact data the break compromised and what steps customers can take to protect themselves.

Businesses must also comply with data retention laws, which dictate how long they can retain customer data. This may vary by situation.

Businesses owe it to customers to keep their data safe. By following the law, it is possible to avoid trouble. It also allows a business to maintain a good relationship with customers when they know the business is treating their data with care.