Over the last ten years, compliance requirements have changed dramatically and many times over. In the last couple of years, the focus has shifted to regulatory compliance, financial regulations, new data privacy laws, and unfolding deadlines. Businesses that meet these standards are in the optimal position to seek business growth. Companies that struggle to meet these standards are penalized with high fees for non-compliance.
What do enterprises need to do to stay compliant? Are there any technologies that support data privacy adherence? Let’s review current data privacy regulations and the innovative digital solutions businesses need to effectively and efficiently meet the ever-evolving contract processing standards.
Data Privacy Laws
Data privacy laws provide the legal framework for obtaining, using, and storing information about people. If your company conducts business in multiple states or worldwide, you must be up to date on the following data privacy regulations.
General Data Protection Regulation
The General Data Protection Regulation (GDPR) gives individuals power to control the use of their personal data and holds enterprises accountable for data use and collection practices. It does not pertain to anonymized or publicly available data. The GDPR establishes standards that apply to users in the European Union.
California Consumer Privacy Act
The California Consumer Privacy Act (CCPA) protects the data of consumers who live in California. It applies to businesses that exceed $25 million in gross revenue, utilize the data of more than 50,000 California residents, and derive more than half of their profit from sales of personal data. CCPA gives consumers the right to be informed about their data use, delete their data, opt out of data sales, etc.
California Privacy Rights Act
The California Privacy Rights Act (CPRA) also protects the data of consumers who live in California. It expands the CCPA to more broadly cover data that identifies, describes, relates to, can be associated with, or could be linked to an individual.
Virginia Consumer Data Protection Act
The Virginia Consumer Data Protection Act (VCDPA) protects consumers who live in Virginia. It covers personal information that can be linked to an identifiable person. It excludes public and de-undefined data and does not specify the legalities surrounding aggregate data.
Colorado Privacy Act
The Colorado Privacy Act (CPA) protects consumers who live in Colorado. Like the VCDPA, it covers personal information that can be linked to an identifiable person. It excludes public and de-identified data and does not specify the legalities surrounding aggregate data.
Proposals for comprehensive privacy bills are rapidly gaining momentum at the state level. Although many of the proposed bills will not become law, it is vital to be aware of key provisions to understand privacy laws are evolving in the United States. In addition to understanding existing regulations, businesses need to keep up with the trends to stay ahead. Provisions are developing that pertain to both consumer rights and business obligations. States such as Louisiana, Massachusetts, Michigan, New Jersey, New York, North Carolina, Ohio, Pennsylvania, and Rhode Island all have bills in committee that address various data privacy concerns such as right of access, right of restriction, risk assessments, discriminations, and more. Utah and Connecticut just passed consumer privacy acts this year that will take effect in 2023.
Data Privacy & Contract Analytics
Data privacy regulations drive changes to contract lifecycle management and initiate the creation of new workflows. Data privacy regulations also highlight the importance of information governance and the need for rigorous protection against potential data breaches. Many enterprises struggle with maintaining a single source of truth for all of their documents, locating specific contracts and information within each contract, identifying which contracts need to be updated, and making the necessary changes promptly.
To take control of contract compliance, companies need sophisticated contract analytics tools. Data privacy contract analytics intelligently structures your data for robust reporting, provides visibility into your contracts for astute management, and streamlines the contract updating process.
There are many data privacy contract analytics solutions available on the market today. Still, most AI software for Contract Analytics today relies on technologies that require substantial investments of time and money before they create value, which hinders adoption and inflates costs. ThoughtTrace provides a distinguished Contract Analytics platform built to add value on day 1. ThoughtTrace “in-sources” the training of the AI so that businesses like yours are free to focus on better analysis, judgment, and decision making.
ThoughtTrace exposes troves of valuable data from documents, and often this information was previously inconceivable to access. ThoughtTrace dashboards enable visualization of the information locked in your contracts, telling actionable stories with your data, and making faster decisions grounded in data. The platform delivers curated visual workflows as an interactive means of understanding and navigating the contents of documents at a high level, allowing you to quickly diagnose issues and answer questions about the quality, status, compliance, and progress of your contract data. By surfacing this information to you in a consumable manner, it becomes way more intuitive for your team to identify the actions to prioritize so that it is as easy as possible to maintain compliance with data privacy regulations accurately.
When you are ready to stay on top of data privacy regulations with effective and efficient contract analytics, contact ThoughtTrace.