Protecting Customer Privacy

How can California lawyers best help their clients safeguard their customers' private data? Panelists at the annual Stanford Law School e-commerce conference in June had some ideas about what attorneys should be telling the corporations they represent.

1. Avoid absolutes. Don't make sweeping promises in marketing materials, such as claiming that customer data is "absolutely" secure.

2. Delete frequently. Don't store customer data any longer than necessary- otherwise it may become a liability.

3. Know your data. Keep track of what you have and where you keep it, while constantly reevaluating what customer data you actually need and deleting the rest accordingly.

4. Disclose, disclose, disclose. Customers want to know what you're doing with their data. So be up front--and then stick to what you've said.

5. Use your imagination. If you're in a sticky, unclear situation concerning the privacy of customer data, imagine that all the details involved will be disclosed in a national newspaper. If this scenario makes you uncomfortable, take action immediately to correct how the data is being handled.

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