Resources for Health Insurance Portability and Accountability Act (HIPAA)

The Clash Of European Union And United States Data Privacy Laws

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Multinational companies based in the United States may be subject both to the data privacy laws of the United States as well as those of other countries in which they operate. Complying with these laws may pose difficult challenges for companies, because of fundamental differences in international approaches to data privacy. As the U.S. Department of Commerce has explained: "While the United States and the European Union share the goal of enhancing privacy protection for their citizens, the United States takes a different approach to privacy from that taken by the European Union. The United States uses a sectoral approach that relies on a mix of legislation, regulation, and self-regulation. The European Union, however, relies on comprehensive legislation that, for example, requires creation of government data protection agencies, registration of data bases with those agencies, and in some instances prior approval before personal data processing may begin." The ease with which companies, operating in the modern information economy, can collect, store, and move personal data via electronic communication makes it increasingly likely that such companies may subject themselves to, and possibly violate, the data privacy laws of one country or another.

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