Information-sharing disclosure guidelines to help companies comply with California SB27, which goes into effect January 1, 2005.

http://www.privacy.ca.gov/recommendations/recomend.htm

California SB27, otherwise known as the “Shine the Light” law, goes into effect January 1, 2005. Briefly, SB27 declares that if a company shares information about consumers who are California residents with third-party organizations for the latter’s promotional purposes, the company must disclose the names and addresses of these third-party organizations to consumers upon request.

SB27, the first state law of its kind, affects all companies who do business in California. To help companies around the world comply with the new law, the California Office of Privacy Protection, working with an advisory committee that included TRUSTe staff, has developed a recommended practices document. The document does not just lay out a set of rules for complying with SB27: It also defines a set of best practices for crafting privacy policies and information-sharing disclosure documents.

“One way to simplify compliance with multiple laws is to go for the highest common denominator,” says Joanne McNabb, chief of the California Office of Privacy Protection. “In fact, when we looked at other notice requirements such as the California Online Privacy Protection Act, the federal Gramm-Leach-Bliley Act, and HIPAA, they aren’t contradictory. They’re kind of complementary.”

McNabb says her office consulted business as well as consumer advocates in drafting this document, and describes the guidelines as “reasonable and practical.” “There’s a business benefit for following these recommended practices,” she continues, “and there’s a consumer benefit -- consumers won’t have to navigate a dozen different privacy policies.”

Be sure to check the January 2005 issue of this e-newsletter, which will include a “Tech Tip” providing more information on how SB27 affects TRUSTe members’ privacy practices.

 

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