Data Protection Laws: From HIPAA to the CCPA
Data protection laws, including the Health Insurance Portability and Accountability Act, California Consumer Privacy Act, and General Data Protection Regulation, are essential to safeguarding consumer data as most modern organizations store sensitive information digitally.
These laws stop personal, financial, and health-related data from falling into the wrong hands and hold companies accountable for mishandling or exposing your personal data. Class Action U’s mission is to help victims seek compensation for breaches that violate data protection laws ranging from HIPAA to CCPA. If an organization has exposed or mishandled your data, you deserve justice.
How Does the HIPAA Law Differ From the CCPA and GDPR?
Health Insurance Portability and Accountability Act
HIPAA is among the most significant data protection laws in the United States because it shields medical data and helps prevent identity theft in areas such as housing, employment, and insurance coverage.
Purpose and Who Must Comply
Enacted in 1996, HIPAA establishes standards for managing and sharing medical records, personal health information, and billing details. It applies to virtually any health care provider, including:
- Hospitals
- Clinics
- Doctors
- Psychologists
- Pharmacies
- Dentists
- Nursing homes
Insurance companies and government programs such as Medicare and Medicaid must also follow HIPAA requirements. Third-party vendors that perform services involving access to personal health, such as billing companies, data storage firms, and even legal or accounting consultants, must also follow specific HIPAA rules.
Violations and Compensation
When a health care provider fails to protect patient data, it can face federal penalties, including prison time fines of $50,000 or more, and civil lawsuits. These organizations must also file a report with the Office for Civil Rights under the U.S. Department of Health and Human Services if a breach occurs.
You may become aware of a HIPAA violation if you receive a breach notification from your health care provider, notice unauthorized access to your medical records, or experience identity theft. As a data breach victim, you may have a claim for financial compensation if you can show the health care provider’s negligence caused you to suffer damages, including identity theft, fraud, or medical record misuse.
California Consumer Privacy Act
The California Consumer Privacy Act of 2018 protects the data privacy of Californians who buy products or services from businesses that collect consumers’ personal information.
Who Must Comply
CCPA provisions apply to any organization serving customers in California that meets at least one of these criteria:
- Has more than $26.625 million in gross annual revenue
- Buys, sells, or shares the personal data of 100,000 or more consumers or households in California
- Receives at least 50 percent of their annual revenue from selling or sharing the personal information of California residents
Most nonprofits and government agencies operating in the state of California don’t have to follow CCPA.
Key Provisions and Penalties
General Data Protection Regulation
The CCPA grants California consumers rights related to their personal data, including:
- The right to know when and how an organization collects and sells your information
- The right to delete personal information a company is storing
- The right to opt out of having an organization sell your data
- The right to not be discriminated against for exercising your rights under the CCPA
- The right to correct inaccurate personal information a business has
- The right to limit how a business uses and discloses your personal information
As of 2025, businesses failing to comply with any of the CCPA’s provisions face fines of up to $7,988 for each intentional violation and violations involving the personal information of consumers known to be under 16 years of age. Unintentional violations carry fines of no more than $2,663.
Victims can also seek statutory damages for losses occurring when an organization fails to follow CCPA requirements. If the breach involved multiple victims, you may also have the option to join a class action lawsuit.
The European Union enacted the GDPR in 2018 to give consumers greater control over how businesses manage their personal information. Failure to comply carries steep fines
Key Consumer Rights and Who Must Comply
The GDPR protects personal data and gives individuals more control over how businesses collect, store, and use personal information. It covers how organizations handle personal data. More specifically, it grants these rights:
- The right to be informed of what data an organization is collecting, how long they will keep it, how they will use it, and whether they will share it
- The right to access the personal data an organization collects about you
- The right to correct inaccurate or incomplete information
- The right to erase your data
- The right to restrict processing while allowing data storage
- The right to data portability, the ability to obtain data in a common, easily transferable format
- The right to object to an organization processing your data
- The right to opt out of the use of your data for automated decision-making
Every consumer covered by GDPR has these rights, regardless of the company’s location. Even businesses outside the EU must comply if they offer goods or services to or process the personal data of EU citizens and residents.
Core Principles and Penalties
GDPR is based on a set of principles organizations must follow to maintain compliance:
- Lawfulness, fairness, and transparency
- Purpose limitation
- Data minimization
- Accuracy
- Storage limitation
- Integrity and confidentiality
- Accountability
The penalties for failing to uphold these principles can involve millions of dollars in fines. If an EU resident suspects a company has violated their rights, they can file a complaint with their country’s Data Protection Authority and take legal action.
Other U.S. Data Protection Laws
The United States has other data privacy laws focused on specific organizations and populations. For example, under the Children’s Online Privacy Protection Act, websites must obtain parental consent to collect the data of children under 13.
The Gramm-Leach-Bliley Act requires financial institutions to explain their data-sharing practices and give consumers the right to opt out.
Finally, the Privacy Act of 1974 regulates how the government collects, keeps, uses, and shares your personal information. It ensures that federal agencies follow fair practices when handling personal data.
Data Breach Notification Laws
Data privacy laws generally aim to prevent unauthorized access, but they also outline steps organizations must take in case of a data breach, including notifying victims.
Laws Mandating Notifications
In the EU, the GDPR mandates that businesses notify authorities within 72 hours of a breach if it poses a consumer risk. California’s CCPA law and New York’s SHIELD Act require organizations to promptly notify residents of unauthorized data access.
Similarly, HIPAA requires health care organizations to notify you within 60 days of discovering someone has accessed your medical information. Under the GLBA, institutions in the financial sector are also required to inform customers of unauthorized access to sensitive information.
What Must a Data Breach Notification Include?
Breach notifications typically describe the breach and the types of data compromised. Notifications must also identify when and how the breach occurred and explain the organization’s steps to contain and prevent further damage.
=In most notifications, the organization recommends actions you can take to limit the impact of the breach, such as updating your passwords and monitoring your credit report.
How To Know If a Data Breach Notification Is Real or Fake
When you receive a data breach notification, the first question to ask is whether it is real or a scam. Look at the information provided and confirm its validity. It may be a scam if it’s vague, has obvious errors, or doesn’t include specific information about an incident.
Fake notifications often promise large payouts with short turnarounds and may ask you to pay an upfront fee to receive compensation.
Steps To Take if Your Data Has Been Compromised
If you discover your personal data has been compromised, act quickly to minimize the damage. Find out as much as possible about the breach, including the type of information and who accessed it. If the incident involved information for your online accounts, change your passwords immediately and enable two-factor authentication to prevent unauthorized access.
Monitor your financial accounts and credit reports closely for unusual activity in the weeks and months following the breach. You can also submit a fraud alert to the credit reporting agencies and freeze your credit file.
If you’ve suffered financial losses because of the breach, contact a skilled attorney to discuss your legal options, including how to start a class action lawsuit.
Seeking Justice: Next Steps for Data Breach Victims
For victims of data breaches, consulting with an attorney as soon as possible will protect your rights and help you fight back against financial fraud, identity theft, and the misuse of your private information. A well-versed data breach attorney can guide you through the complex claim process and work to ensure you receive fair compensation for your losses.
Class Action U connects victims with experienced data breach attorneys who understand the ramifications of privacy violations. If you received a notice letter in the last 30 days informing you that you were affected by a data breach, Contact Us immediately and take the first step toward securing the compensation you deserve.
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