Three Steps to Protect Your Business
What can you do to protect yourself from the FTC and claims by your users?
Read your privacy policy. Many website owners do not know what their privacy policy requires them to do. You must understand what your privacy policy says and what it is requiring you to do.
Develop an internal policy. You should have an internal administrative policy that all employees should follow that address storage, use, types, and periodic changes of passwords. Also, it should address use and access of personal information collected from the users and where that information is stored.
Disclose uses of data collected. Address in your privacy policy how you plan on using data collected, including the following points:
Individuals should be clearly advised of the type of personal data being collected;
The intended uses and users of personal data should be identified;
Describe the security measures intended to protect the personal data from unauthorized access;
Describe a means through which users can review their personal data and correct or contest it;
Special measures need to be included for personal information of children if it is collected. Companies that collect data from or about children should provide a means through which parental authorization will be obtained.
This is not an exhaustive list of items and you should review your privacy policy with “standard reasonable security practices” in mind. You should periodically review and audit your procedures to see what is working and what is not working. You should determine if you are continuing to consistently do what you said you would do in your privacy policy. Also, if you share any user information with other companies, you should have contracts with those companies requiring that user information be protected at a minimum under your privacy and security measures, and limit use of the information.
You can read the full article here at Practical eCommerce: http://www.practicalecommerce.com/articles/2321-Legal-Privacy-Lessons-from-the-Twitter-Breach-


