Navigating American Data Legislation: A Marketer’s Guide to Compliance

As a marketer, understanding data legislation is more important than ever. Customers expect transparency and security, and various U.S. laws require businesses to protect their personal information. This guide unpacks key American data privacy regulations, focusing on how marketers can stay compliant while building trust with their audience.

Covered in this article

Understanding the American Data Privacy Landscape
Key U.S. Data Privacy Laws Marketers Need to Know
State-Level Privacy Laws Impacting Marketers
Best Practices for Marketers to Stay Compliant
The Future of U.S. Data Privacy Legislation
FAQs

Understanding the American Data Privacy Landscape

When it comes to data privacy, the U.S. takes a unique approach. Unlike Europe’s General Data Protection Regulation (GDPR), which is a single, overarching law, data privacy in America operates under a patchwork of state-level and industry-specific regulations.

Federal data protection laws do exist for certain sectors, like healthcare and finance, but there is no all-encompassing federal law that governs data privacy across the board. This fragmented approach can be tricky for marketers, especially those targeting consumers across different states or industries. Let’s break down the most important data privacy laws for marketers.

2. Key U.S. Data Privacy Laws Marketers Need to Know

2.1 CCPA (California Consumer Privacy Act)

The CCPA is one of the most significant data protection laws in the U.S. It applies to businesses that meet at least one of the following criteria:

• Annual gross revenues over $25 million
• Buys, receives, or sells personal information of 50,000 or more consumers, households, or devices
• Derives 50% or more of its annual revenue from selling consumers' personal information

What Marketers Need to Know

The CCPA gives California residents the right to know what personal data is being collected, request that their data be deleted, and opt-out of having their data sold. This means marketers must:

• Include a “Do Not Sell My Personal Information” link on their websites.
• Have processes in place to handle consumer requests for data access and deletion.
• Be transparent about what data is collected and how it’s used.

Penalties for Non-Compliance

Fines under the CCPA can be up to $2,500 per violation or $7,500 for intentional violations. This makes it essential for marketers to review their data collection practices and ensure they meet CCPA standards.

2.2 CPRA (California Privacy Rights Act)

The CPRA, an extension of the CCPA, enhances consumer protections. It officially establishes the California Privacy Protection Agency (CPPA), which enforces the rules. The CPRA also introduces new requirements, such as protecting sensitive data (like health or financial information) and ensuring businesses practice data minimization, meaning only necessary data is collected.

What Marketers Need to Know

Marketers must now pay special attention to sensitive data and limit its use unless strictly necessary for business purposes. This law also emphasises the importance of keeping records of consumer data requests and ensuring transparency about data use.

2.3 COPPA (Children's Online Privacy Protection Act)

If you’re marketing to children, COPPA is crucial. It requires businesses to obtain parental consent before collecting personal information from children under 13. This law applies to websites, apps, and online services that target children or collect data from them.

What Marketers Need to Know

To comply with COPPA, you must:

• Use age-gating features on your site or app to ensure users are over 13.
• Clearly disclose your data collection practices.
• Obtain verifiable parental consent before collecting any personal information from children.

2.4 HIPAA (Health Insurance Portability and Accountability Act)

While HIPAA primarily impacts the healthcare industry, it can affect marketers if you’re working with personal health information (PHI). This act protects medical data and restricts its use for marketing purposes without explicit patient consent.

What Marketers Need to Know

If your marketing efforts touch on health or wellness, especially in sectors like health tech, you need to ensure that any PHI you use or collect is handled in compliance with HIPAA regulations.

State-Level Privacy Laws Impacting Marketers

While the CCPA is the most well-known, several other states have introduced their own privacy laws, further complicating the data landscape for marketers.

3.1 Virginia Consumer Data Protection Act (VCDPA)

The VCDPA is similar to the CCPA but goes a step further by offering additional protections for sensitive data. It gives consumers the right to access, correct, delete, and opt out of the processing of their personal information.

3.2 Colorado Privacy Act (CPA)

The CPA aligns closely with California’s privacy laws, giving consumers more control over their data and requiring businesses to implement stronger security measures to protect that data.

3.3 New York’s SHIELD Act (Stop Hacks and Improve Electronic Data Security)

New York’s SHIELD Act requires businesses that handle the personal data of New York residents to adopt “reasonable” security measures to protect it from cyberattacks and data breaches. For marketers, this means ensuring your data systems are secure, whether through encryption or strong access controls.

Best Practices for Marketers to Stay Compliant

Navigating the patchwork of U.S. data laws can seem overwhelming, but with the right practices in place, you can ensure compliance and build trust with your audience.

Transparency and Consent

Be open about what data you’re collecting and why. Make your privacy policies clear and accessible, and always seek explicit consent before collecting personal information, particularly for email campaigns, retargeting efforts, or third-party data usage.

Honor Consumer Rights

With laws like the CCPA and VCDPA, consumers have rights to access, delete, and opt out of data collection. Ensure your marketing systems can handle these requests seamlessly. Using tools like HubSpot, you can automate the process, making it easier to manage data privacy and consumer requests.

Regularly Audit Your Data Practices

Stay ahead of the curve by conducting regular audits of your data collection and storage practices. Ensure that any data you're storing is relevant and compliant with current laws. Regular audits also help identify any vulnerabilities in your systems.

Data Security

Strong data security measures are a must. Encryption, multi-factor authentication, and role-based access controls are all effective ways to secure customer data. By investing in these measures, you not only comply with laws like the SHIELD Act but also reduce the risk of costly data breaches.

Use Marketing Tools That Ensure Compliance

Platforms like HubSpot are designed with compliance in mind. HubSpot’s CRM features help you manage data, process consent, and handle consumer requests, all while ensuring your marketing efforts align with data protection laws like CCPA, CPRA, and others.

The Future of U.S. Data Privacy Legislation

With the rise of state-level data privacy laws, there’s growing pressure on the federal government to introduce a unified national data protection law. If passed, this would simplify compliance for businesses operating across multiple states. However, until then, marketers need to stay informed and agile, adapting to both state and federal changes.

How This Could Affect Marketers

A federal law could standardise rules for data privacy, potentially reducing the complexity of compliance. However, it may also introduce stricter guidelines, making it essential for marketers to stay proactive and ensure their data collection practices are airtight. 

Contact Velocity today to find out how we can help you manage your data privacy and line your business with local and international legislation. 

FAQs

1. What is the CCPA, and how does it affect marketers?

The California Consumer Privacy Act (CCPA) is a law that gives California residents the right to know what personal data is collected about them, request its deletion, and opt-out of its sale. Marketers must update their websites with a "Do Not Sell My Personal Information" link, honor consumer data requests, and ensure transparency in data collection.

2. How does the CPRA differ from the CCPA?

The California Privacy Rights Act (CPRA) enhances the CCPA by offering additional protection for sensitive data, such as Social Security numbers and health information. It also establishes the California Privacy Protection Agency (CPPA) to enforce the law and introduces new requirements like data minimization, ensuring businesses only collect necessary data.

3. What is COPPA, and does it apply to all marketers?

The Children's Online Privacy Protection Act (COPPA) protects the personal information of children under 13. It applies to websites and services that target children or knowingly collect information from them. Marketers who engage with younger audiences must obtain verifiable parental consent before collecting any personal data from children.

4. Do I need to comply with HIPAA if I’m in marketing?

HIPAA, or the Health Insurance Portability and Accountability Act, applies to the healthcare industry, but it can impact marketers working with personal health information (PHI). If your marketing involves health-related products or services, you must ensure that any PHI is handled according to HIPAA’s strict guidelines.

5. What other state-level privacy laws should I be aware of?

In addition to California’s CCPA and CPRA, states like Virginia (VCDPA), Colorado (CPA), and New York (SHIELD Act) have passed their own privacy laws. These laws offer similar protections but have different scopes and requirements. Marketers targeting consumers in multiple states need to be aware of these regional differences.

6. What are the penalties for non-compliance with U.S. data privacy laws?

Penalties vary by law:

• Under the CCPA, businesses face fines of up to $2,500 per violation or $7,500 for intentional violations.
• The CPRA can impose higher penalties, especially for breaches of sensitive data.
• COPPA violations can result in fines of up to $43,280 per child. To avoid penalties, marketers must ensure their data practices comply with all relevant laws.

7. How can HubSpot help marketers stay compliant with U.S. data laws?

HubSpot offers built-in features to help businesses stay compliant, including tools to manage consumer consent, process data access and deletion requests, and securely store data. By using HubSpot’s CRM, marketers can automate compliance processes and ensure their marketing practices align with U.S. data privacy laws.

8. Is there a chance of a unified federal data privacy law in the U.S.?

While the U.S. currently operates under a patchwork of state laws, there is growing pressure for a unified federal data privacy law. Such a law could simplify compliance for businesses, but it may also introduce stricter guidelines. Marketers should stay updated on potential legislative changes.