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Data privacy vs. data security: What internal auditors need to know
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US Privacy Landscape Shifts as New State Laws Take Effect
Indiana, Kentucky, and Rhode Island enacted comprehensive consumer privacy laws on January 1, 2026, expanding the total number of U.S. states with such regulations to 20. These statutes introduce stricter requirements for processing sensitive information and biometric data as brands navigate an increasingly complex regulatory environment.
According to reports from natlawreview.com and nixonpeabody.com, updates to the California Consumer Privacy Act (CCPA) also became effective at the start of the year. These revisions address automated decision-making technologies, cybersecurity audits, and enhanced consumer rights regarding sensitive personal data.
The Connecticut Data Privacy Act (CTDPA) is scheduled for further expansion on July 1, 2026. This amendment will require organizations to explicitly disclose whether they use personal information to train large language models (LLMs).
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The Five P's: What Congress Gets Right on Data Protection but Needs Structure to Successfully Enable Privacy
The House Energy & Commerce Committee’s Privacy Working Group has introduced something rare in Washington: a privacy bill with real teeth. The Secure Data Act, unveiled on April 22, proposes a sweeping federal framework that would supersede the patchwork of state privacy laws that has bedeviled compliance officers and consumers alike for a decade. It includes consumer rights, data minimization, broker registration, and Federal Trade Commission enforcement authority.
Much of it is sensible. But reading the Act through the lens of how data breaches occur reveals a persistent blind spot that no amount of rulemaking has yet fully closed. The problem is not only that companies collect too much data; the deeper, costlier problem is that they collect it, store it carelessly, and then are surprised when it walks out the door. Fixing that failure can be organized around five foundational principles, which I’ll call the Five P’s of Privacy. Or, as I think of it, data security.
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