The PIPA law in Maryland, officially known as the Personal Information Protection Act, is a key piece of legislation designed to safeguard the personal identifying information of Maryland consumers. Enacted under Maryland Code Annotated, Commercial Law 14-3504, its primary purpose is to ensure that businesses and entities handling this sensitive data implement reasonable measures for its protection.
Understanding the Maryland PIPA Law
The PIPA law in Maryland focuses on two main pillars: the protection of consumer data and notification in the event of a data compromise.
1. Protection of Personal Identifying Information
The Act mandates that organizations holding personal identifying information take reasonable steps to protect it from unauthorized access, use, or disclosure. While the specific definition of "personal identifying information" can be broad, it generally refers to data that can be used to identify an individual, such as name, address, social security number, driver's license number, or financial account information. The requirement for "reasonable protection" implies that entities must employ security safeguards appropriate to the nature of the information being protected and the risks involved.
2. Breach Notification Requirements
A critical component of PIPA is its requirement for data breach notification. If personal identifying information is compromised—meaning it has been accessed or acquired by an unauthorized person—the affected consumers must be promptly notified. This notification is not merely a formality; it serves a crucial role in empowering individuals.
The notification enables consumers to:
- Be aware of the compromise: Understand that their personal data may be at risk.
- Take protective measures: Implement steps to safeguard themselves from potential harm, such as identity theft or financial fraud. This could include placing fraud alerts on credit reports, monitoring bank accounts, changing passwords, or freezing credit.
Key Aspects of Maryland's PIPA Law
To summarize the core elements of the Personal Information Protection Act in Maryland:
| Aspect | Description |
|---|---|
| Full Name | Personal Information Protection Act (PIPA) |
| Legal Citation | Md. Code Ann. Comm. Law 14-3504 |
| Primary Objective | To ensure the reasonable protection of Maryland consumers' personal identifying information. |
| Breach Obligation | Requires notification to consumers if their personal identifying information is compromised. |
| Consumer Empowerment | The notification allows consumers to take timely actions to protect themselves following a data breach, mitigating potential harm from identity theft or financial fraud. |
In essence, PIPA serves as a vital consumer protection statute, holding businesses accountable for the security of sensitive personal data and ensuring transparency and consumer agency in the wake of a data security incident.
