Customer and Employee Data Privacy: Illinois Businesses Must Act Affirmatively

Businesses in Illinois must comply with ever-evolving data privacy laws to protect both consumers and their own organizational operations. Under stringent regulations like the Biometric Information Privacy Act (BIPA) and the Personal Information Protection Act (PIPA), failing to act can yield legal and reputational consequences. 

Understand these laws to help avoid the risks that come with handling sensitive customer information.

Illinois Data Privacy Laws: Key Requirements

Biometric Information Privacy Act (BIPA)

BIPA is one of the strictest biometric privacy laws in the country, regulating how businesses collect, store, and use biometric identifiers like fingerprints, facial recognition scans, and retina scans. 

Companies must:

• obtain written consent before collecting biometric data

• inform individuals of how their data will be used and stored

• specify when biometric data will be deleted, in a data retention policy

Individuals have a right to sue for violations of BIPA, resulting in significant potential for financial penalties.

Personal Information Protection Act (PIPA)

The Illinois Personal Information Protection Act (PIPA) governs requirements for businesses to safeguard personally identifiable information (PII) from breaches. 

Companies must:

• notify Illinois residents when their personal data has been exposed in a breach

• encrypt and otherwise secure stored PII

• ensure compliance by third party service providers handling their PII

  
  

Other Relevant Laws and Regulations

• The Illinois Consumer Fraud and Deceptive Business Practices Act prohibits misleading data practices and requires transparency in data collection and use.

• U.S. Federal Laws: Businesses must also comply, where applicable, with federal regulations such as the Health Insurance Portability and Accountability Act (HIPAA) for healthcare information and the Children’s Online Privacy Protection Act (COPPA) if collecting data from minors.

  
  

Best Practices 

To minimize risk and promote consumer trust, Illinois businesses should:

1. Regularly Perform a Data Governance Audit – review how your organization collects, stores, and shares customer data

2. Implement Security Measures – use encryption, firewalls, and access controls to protect data

3. Update Policies & Consent Forms – obtain explicit consent before collecting biometric or personal information

4. Train Employees – educate all team members on proper data handling practices to reduce the risk of breaches

5. Prepare a Breach Response Plan – document an action plan in case of a data breach, to mitigate damage and notify impacted individuals promptly

   
   

Protect Your Business

Illinois’ complex data privacy laws require strategic planning and legal analysis. Data Steward specializes in legal and technology consulting to help businesses stay compliant with BIPA, PIPA, and other relevant regulations.

Don’t wait until a data breach cripples your business! Contact us today to schedule a consultation.

egavin@datastewardpllc.com

www.datastewardpllc.com