7 Key Compliance Regulations Relating to Data Storage
As data storage practices evolve, so do the regulatory frameworks that govern them. With rapid digital transformation, compliance with regulations related to data storage has become a critical responsibility for organizations across various industries. For C-suite executives, data officers, and IT professionals, understanding these regulations is crucial for ensuring compliance, mitigating risks, and safeguarding valuable data assets. This blog outlines seven key compliance regulations every organization should know to ensure they manage data responsibly and legally.
Here are a few key compliance regulations that impact data storage:
International Regulations
1. Payment Card Industry Data Security Standard (PCI DSS)
The Payment Card Industry Data Security Standard (PCI DSS), established in 2004 by major card brands like Visa and Mastercard, is a set of security standards designed to protect credit and debit card transactions from fraud and data theft. Governed by the Payment Card Industry Security Standards Council (PCI SSC), PCI DSS compliance is mandatory for businesses handling card transactions, though it is enforced through contracts rather than law. It applies to any organization that stores, processes or transmits cardholder data. Organizations must maintain secure data storage, encryption, and robust access controls to ensure that cardholder data is not compromised. PCI DSS compliance is divided into four levels based on a business’s transaction volume, with varying requirements for annual assessments and vulnerability scans.
2. ISO/IEC 27001
ISO/IEC 27001 is an international standard that outlines best practices for information security management systems, established by the International Organization for Standardization (ISO) and International Electrotechnical Commission (IEC). It provides a framework for organizations to establish, implement, maintain, and continually improve their data security processes. The goal is to protect information confidentiality, integrity, and availability across all forms—whether digital, paper-based, or process-oriented. ISO 27001 includes 14 sections of security controls, covering areas like access control, risk management, cryptography, and physical security. Certification demonstrates an organization’s commitment to data protection and regulatory compliance. The certification process involves building an ISMS, identifying and treating risks, implementing controls, and undergoing audits by accredited bodies.
US Regulations
1. California Consumer Privacy Act (CCPA)
The California Consumer Privacy Act (CCPA), enacted in 2018, is a data privacy law designed to protect the personal information of California residents. Often compared to the EU’s GDPR, it grants consumers various rights, including the ability to opt out of the sale of their personal data, the right to access and delete their information, and protection from discrimination for exercising these rights. The law also includes specific provisions for the protection of minors’ data and requires businesses to display clear “Do Not Sell My Personal Information” links. It applies to for-profit entities that meet certain thresholds, such as having annual revenue over $25 million or handling data from 100,000 or more California residents. Certain sectors, like healthcare, are exempt from CCPA provisions when handling protected health information (PHI) governed by other regulations such as HIPAA. However, health-related businesses outside these categories may still be subject to the CCPA’s requirements. Non-compliance can lead to fines of up to $7,500 per violation. The CCPA has set a precedent that may influence similar legislation in other states.
2. California Privacy Rights Act (CPRA)
The California Privacy Rights Act (CCPA 2.0 or Proposition 24) is a law specific to California that strengthens and builds upon the California Consumer Privacy Act (CCPA). The CPRA was enacted to address concerns that the CCPA did not go far enough to protect data subjects’ privacy rights. CPRA introduces new definitions, categories of businesses, and rights for consumers, including the right to know, delete, correct, and limit the use of their sensitive personal information. It also strengthens data minimization, profiling, and risk assessment requirements. CPRA applies to businesses operating in California or interacting with California residents, provided they meet specific thresholds. While it carries many similarities to the CCPA, the CPRA introduces stricter regulations around sensitive data, consent, and third-party data sharing, aiming to provide stronger privacy protections for consumers. Penalties for violations remain steep, with fines reaching up to $7,500 for intentional breaches.
3. Health Insurance Portability and Accountability Act (HIPAA)
The Health Insurance Portability and Accountability Act (HIPAA) sets forth regulations for organizations in the healthcare sector to protect sensitive patient information in the US. HIPAA requires healthcare providers and their business associates to implement safeguards for electronic protected health information (ePHI). This includes access controls, encryption, retaining ePHI for at least six years, and maintaining audit trails of access to these records. Violations can lead to fines ranging from $100 to $50,000 per violation.
4. Sarbanes-Oxley Act (SOX)
The Sarbanes-Oxley Act (SOX) is a U.S. federal law enacted in 2002 to protect investors from fraudulent financial reporting by corporations. It primarily focuses on corporate financial transparency and accountability. However, it also has significant implications for data storage. SOX aims to increase transparency in financial disclosures, improve corporate governance, and ensure the accuracy of financial reports. Under SOX, companies must store financial records, including emails, for at least five years. Data storage systems must ensure that records are tamper-proof, regularly backed up, and accessible for audits. SOX violations can lead to steep fines and even imprisonment for executives, underscoring the need for secure and compliant data storage infrastructures.
EU Regulations
1. General Data Protection Regulation (GDPR)
The General Data Protection Regulation (GDPR), enacted by the EU in 2018, protects the privacy and personal data of EU citizens, applying to any organization that processes this data, regardless of location. It grants individuals rights such as access, rectification, erasure, and objection to data processing while emphasizing principles like lawfulness, data minimization, and security. GDPR covers both direct and indirect personal identifiers and applies strict protections to sensitive data, particularly in healthcare. Non-compliance can result in hefty fines—up to €20 million or 4% of annual global turnover, whichever is higher, with enforcement led by supervisory authorities in each EU/EEA state and oversight provided by the European Data Protection Board (EDPB).
2. EU AI Act
The EU AI Act is the world’s first comprehensive AI law, aiming to ensure that AI technologies in the EU are safe, ethical, and respect fundamental rights. It classifies AI systems into four categories based on risk: unacceptable (banned), high (strictly regulated, like healthcare and law enforcement), limited (requiring transparency), and minimal (little to no regulation). High-risk AI systems must be transparent, explainable, and subject to human oversight. The act proposes a European AI Board for enforcement, and companies violating the rules could face fines of up to 6% of their global turnover or €30 million.
Regulations specific to a particular country or region can have a broader impact on companies operating in other parts of the world. This is especially true when companies in one country do business with entities in another country subject to the regulation. For example, although GDPR is not a U.S. law, it has significant implications for U.S. companies that do business with EU residents.
Bottom Line
Navigating complex data storage compliance regulations can be daunting for organizations. However, understanding these key regulations—GDPR, HIPAA, PCI DSS, SOX, CCPA, FISMA, and EU AI Act—is essential for protecting sensitive information and your business reputation and avoiding costly penalties. By implementing proactive compliance strategies, incorporating these regulations into daily operations, and staying informed about regulations and their updates, regular audits, employee training, and investment in robust data management solutions, organizations can mitigate risks associated with data breaches while fostering trust in their customers.
Learn more: The full guide offers actionable steps to ensure compliance with consumer data privacy regulations and protect your business from costly violations. Read it now!
About the author
Vishnu Jayan is a tech blogger and Senior Product Marketing Manager at Solix Technologies, specializing in enterprise data governance, security, and compliance. He earned his MBA from ICFAI Business School Hyderabad. He creates blogs, articles, ebooks, and other marketing collateral that spotlight the latest trends in data management and privacy compliance. Vishnu has a proven track record of driving leads and traffic to Solix. He is passionate about helping businesses thrive by developing positioning and messaging strategies, conducting market research, and fostering customer engagement. His work supports Solix’s mission to provide innovative software solutions for secure and efficient data management.
