INSIDE COMPLIANCE

Illinois’ Personal Information Protection Act (“PIPA”) became effective on January 1, 2017.  Illinois is just one of many states that recently strengthened their data breach notification systems and created data security laws to enhance protection of personal information.  Like other state provisions, Illinois created stronger safeguards for personal information transmitted electronically.  This act requires that all personal information provided electronically must be encrypted or redacted.  The amendments to PIPA (1) broadened the statute’s definition of personal information; (2) clarified the safe harbor for encryption; (3) addressed required notification to residents after a breach; and (4) established limited exemptions.