Data Compliance
What is data compliance?
Data compliance refers to adhering to applicable laws, regulations, industry standards, and organizational policies that govern how data is collected, processed, stored, shared, and deleted throughout its lifecycle. It applies to personal, sensitive, confidential data across all formats including regulated and unregulated data, and storage locations, including email, cloud services, endpoints, backups, and archives.
Why is data compliance important?
Here are the key reasons why an organization needs to be data compliant:
1. Avoids legal penalties and fines
Data compliance ensures that an organization follows data protection laws. This helps prevent fines, legal action, and operational restrictions caused by improper handling of data.
2. Builds customer trust and brand reputation
Following data compliance standards shows that an organization is committed to protecting customer data. This builds trust, strengthens brand reputation, and reduces the risk of losing customer confidence due to data misuse or breaches.
3. Protects sensitive and business-critical data
Data compliance requires organizations to implement security measures such as access controls, encryption, and monitoring to protect personal and confidential data. These measures reduce the risk of data breaches, identity theft, and financial fraud, protecting both customers and the organization.
4. Enables global business operations
Many countries allow data sharing and business partnerships only with compliant organizations. By meeting data compliance requirements, an organization can operate internationally, collaborate with global clients, and expand its business without legal barriers.
5. Improves internal processes and accountability
Compliance requires organizations to define clear data-handling policies, assign specific roles and responsibilities, and maintain proper documentation. These steps streamline internal processes, improve accountability, and help employees manage data more efficiently and responsibly.
6. Prepares the organization for future regulations
As data protection laws evolve, compliance helps organizations stay prepared, reduce future costs, and adapt smoothly to new regulatory requirements.
7. Gives a competitive advantage
Organizations that are data compliant are more likely to be trusted by customers and business partners. Compliance demonstrates reliability and professionalism, helping organizations win contracts, form partnerships, and stand out from competitors.
Key data compliance regulations and standards
Data compliance regulations and standards define how organizations must collect, use, store, share, and protect data to ensure privacy, security, and responsible use. Key regulations that are widely adopted are outlined below:
General Data Protection Regulation (GDPR)
Region: European Union
GDPR is one of the most important and strict data protection laws in the world. It governs how organizations handle personal data of the EU residents. GDPR focuses on user consent, data privacy rights, transparency, and accountability, and applies even to non-EU companies if they handle EU user data.
Digital Personal Data Protection Act (DPDP Act)
Region: India
The DPDP Act regulates how the personal data of Indian citizens is collected and processed. It emphasizes lawful data usage, user consent, data security, and breach reporting. Its key aspects include mandatory consent, data breach notifications, specific rules for children's data, and significant penalties for non-compliance. This act applies to digital personal data processing within India and outside India if it involves offering goods/services to Indian residents.
California Consumer Privacy Act (CCPA) / CPRA
Region: United States (California)
CCPA gives consumers the right to know, access, delete, and opt out of the sale of their personal data. It mainly applies to businesses operating in California or handling data of California residents and is widely followed by global companies serving U.S. Customers.
Health Insurance Portability and Accountability Act (HIPAA)
Industry: Healthcare
HIPAA governs the protection of medical and health-related data. It ensures that patient information is securely stored, shared only with authorized parties, and protected against misuse. HIPAA is mandatory for healthcare providers and related service organizations.
Payment Card Industry Data Security Standard (PCI DSS)
Industry: Banking and payments
PCI DSS is a globally mandated security standard for organizations that process credit and debit card transactions. The main objective of PCI DSS is to protect cardholder data and reduce the risk of data breaches or fraud in the payment card industry.
Financial Industry Regulatory Authority (FINRA)
Industry: Financial services and brokerage
FINRA regulates broker-dealers and financial firms in the United States. It sets rules for protecting customer financial data, maintaining accurate records, monitoring communications, and ensuring secure handling of sensitive investor information.
Sarbanes-Oxley Act (SOX)
Industry: Public companies and financial reporting
SOX is a U.S. law that focuses on the accuracy and integrity of financial reporting. It requires organizations to maintain strong internal controls, including controls over financial data and systems that store or process financial information.
ISO/IEC 27001
Type: International Security Standard
ISO 27001 is a globally recognized standard for information security management systems (ISMS). It provides a framework for organizations to manage security risks, ensuring data confidentiality, integrity, and availability, and helps meet legal and regulatory requirements.
SOC 2 (Service Organization Control 2)
Industry: SaaS and Technology
SOC 2 focuses on how service providers manage customer data, covering security, availability, confidentiality, and privacy. It is especially important for cloud-based and SaaS companies working with enterprise customers.
Data compliance regulations and standards differ based on region and industry, but all these regulations and standards aim to protect personal and sensitive data. Organizations must identify applicable regulations and maintain data compliance to reduce legal risks and build customer trust.
Zoho eProtect is a cloud-based email security and compliance solution designed to help organizations meet regulatory requirements. Its key features include encrypted email archiving, advanced eDiscovery, customizable retention policies, and detailed audit trails.