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Privacy Regulation

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Privacy Regulation

1. Anonymous Electronic Payments
According to the statistics, more than $5 trillion worth of online transactions happened in 2013. In general, there are five payment methods: credit card, debit card, direct deposit and direct debit, online payment services, and electronic bill payment services; in which credit card is the most popular one. Sensitive personal information is required to provide when using these methods, such as names, address, credit card numbers, secure code, and other account numbers. This information is accessed by sellers, credit card companies, banks and other related financial institutions, and easy to become the target of identity theft or cybercriminals. Thus, US government has regulations to protect the personal information of customers. The Fair and Accurate Credit Transaction Act (FACTA), amended in 2003, is aimed to reduce the identity theft by allowing customers to obtain free credit report every twelve months and set alert on their credit histories.
However, sometimes people need anonymous online transactions, because we don’t know whether the website is trust-worthy or they will sell our personal information to third parties. There are several anonymous methods for online transactions. * Mask Me, disposable credit cards provided by an company, Abine. With this service, when credit card information is requested at checkout, you can choose “Mask My Card” and add the price to a card, and then you will get a virtual credit card with this amount. (See the pictures below) Sellers won’t get access to your real card information and credit card agencies won’t know what you do with the card. It’s completely legal and anonymous when purchasing.

Source: Abine, http://abine.com/maskme/features/cards/ * Gift Card. You can use gift cards when purchasing online, which doesn’t request personal information. If you buy gift cards with cash or get from other people, it is completely anonymous. For example, a lot of merchants accept Amazon gift cards. * Bitcoins. It is a virtual currency and the most popular anonymous method of online payment, which only requests a virtual wallet address and the identity behind the address is anonymous. However, it is an immature market that only a few companies accept bitcoins, such as Dell, Overstock, Newegg, etc. There are no laws or regulations to monitor the bitcoin exchanges, but New York State Department of Financial Services proposed virtual currency regulation to verify the identity of customers. * Escrow, a third party website that customers pay money to Escrow instead of directly to sellers. When items are shipped and both sides agree that the transactions can be finished, Escrow will pay sellers. However, even though credit card information of customers is anonymous to sellers, not to Escrow. Besides, it only can be used on eBay.
There isn’t a national wide law to protect online transactions and customers’ personal information. California has an Online Privacy Protection Act of 2003, which “requires an operator, defined as a person or entity that collects personally identifiable information from California residents through an Internet Web site or online service for commercial purposes, to post a conspicuous privacy policy on its Web site or online service and to comply with that policy”.

4. Prescription Drug Usage Information
Personal medical information can be accessed by healthcare providers, insurance companies, pharmacist, state public health organizations, and etc. It includes medical records, bills, test results, receipts and claim forms. This information can be misused by hospitals or pharmacies. Thus, US government has Health Insurance Portability and Accountability Act (HIPAA) to protect the privacy and security of individually identifiable health information, which indicates the information that can be used to identify a specific individual. Under the Privacy Rule of HIPAA, the use and disclosure of Protected Health Information (PHI) is regulated. PHI is the information held by covered entities, such as healthcare clearinghouses, insurance companies, pharmacies, and hospitals, and related to the health condition and payment of individuals. This information about individual’s healthcare record and payment history is supposed to keep private and only provided to individuals, or it is required individuals’ written authorization to disclosure the PHI. However, covered entities have to provide PHI when required by law, such as court orders, warrants and administrative request, used for identifying suspect and missing persons, or covered entities need to facilitate treatment, payment or healthcare operations. In this circumstance, it doesn’t require individuals’ written authorization.
In previous, regulations of patients’ privacy are mostly on hospitals and doctors. Selling the prescription to data mining companies and other entities are legal. However, new rules are set to protect and secure individuals’ healthcare data. In most cases, it prohibits the sale of personal health information without their permission. There are only a few exceptions that health data can be provided for research or public health measures, such as tracking flu epidemics. Besides, selling information to drug manufacturers is still allowed if the name of patients is removed. In general, there are restricts for pharmacies selling prescription drug usage information to other entities, unless it is used for research and public health measures, or without information that can de-identify consumers.

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[ 1 ]. The Statistics Portal, http://www.statista.com/topics/871/online-shopping/
[ 2 ]. FAIR AND ACCURATE CREDIT TRANSACTIONS ACT OF 2003, http://www.gpo.gov/fdsys/pkg/PLAW-108publ159/html/PLAW-108publ159.htm
[ 3 ]. Masked Cards in 30 seconds, Abine, http://abine.com/maskme/features/cards/
[ 4 ]. What Can You Buy with Bitcoins?, Coindesk, http://www.coindesk.com/information/what-can-you-buy-with-bitcoins/
[ 5 ]. Inside New York's Proposed Virtual Currency Regulation, Law360, http://www.law360.com/articles/567974/inside-new-york-s-proposed-virtual-currency-regulation
[ 6 ]. STATE LAWS RELATED TO INTERNET PRIVACY, NCSL, http://www.ncsl.org/research/telecommunications-and-information-technology/state-laws-related-to-internet-privacy.aspx#CollectPI
[ 7 ]. HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT OF 1996, http://www.hhs.gov/ocr/privacy/hipaa/administrative/statute/hipaastatutepdf.pdf
[ 8 ]. ibid
[ 9 ]. New rule protects patient privacy, secures health information, US Department of Health & Human Service, http://www.hhs.gov/news/press/2013pres/01/20130117b.html
[ 10 ]. MILT FREUDENHEIM, And You Thought a Prescription Was Private, The New York Times, http://www.nytimes.com/2009/08/09/business/09privacy.html?pagewanted=all&_r=0

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