U.S. Data Privacy: Basic Summary of Federal Laws

If your business collects personal data, whether from users, customers, or employees, you should be broadly familiar with the legal landscape around data privacy in the U.S.

Unlike the European Union’s GDPR, which offers one clear, unified set of privacy rules across all industries, the U.S. currently takes a patchwork approach. There is no single federal law that covers data privacy across the board. Instead, American businesses must navigate a mix of federal and state laws that vary based on industry, the type of data collected, and even where your customers live.

So, what does this mean for you?

If you're in software, healthcare, finance, e-commerce, or really any field that handles personal data, here are some of the core U.S. federal privacy laws to have on your radar:

Federal Trade Commission Act (FTC Act): Applies to all businesses; prohibits unfair or deceptive practices in commerce and allows the FTC to take enforcement action, including seeking monetary relief.

Gramm-Leach-Bliley Act (GLBA): Applies to financial institutions; requires protection of consumer financial data and disclosure of data-sharing practices.

Children’s Online Privacy Protection Act (COPPA): Applies to websites or apps collecting data from children under 13; requires verifiable parental consent and limits data use and sharing.

Identity Theft and Assumption Deterrence Act: Criminalizes identity theft and supports enforcement against misuse or mishandling of sensitive personal data.

Health Insurance Portability and Accountability Act (HIPAA): Applies to entities handling protected health information; sets national standards for privacy and security of medical data.

Privacy Act of 1974: Applies to federal agencies; governs the collection, maintenance, use, and disclosure of personal records by the U.S. government.

Fair Credit Reporting Act (FCRA): Applies to businesses using consumer reports; mandates accuracy, consent, and disclosures in employment and credit screening

Electronic Communications Privacy Act (ECPA) / Stored Communications Act (SCA): Restricts interception and unauthorized access to electronic communications in transit or in storage.

Cable Communications Policy Act: Applies to cable service providers; limits collection and disclosure of subscriber information.

Right to Financial Privacy Act: Applies to financial institutions; restricts release of customer financial records to federal agencies without proper authorization.

Computer Fraud and Abuse Act (CFAA): Applies broadly; criminalizes unauthorized access to computers and is often used in cybersecurity and trade secret cases.

DISCLAIMER: This post is for general informational purposes only and does not constitute legal advice. While the laws referenced are summarized for clarity, this overview may not capture all legal nuances or recent developments. Consult a qualified attorney for advice specific to your business.