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There is a large gap between the privacy laws of the United States and those of the European Union. Bridging this gap is necessary for American companies to do business with European companies and in European markets in many situations, as the American companies are required to comply with the stricter requirements.
Which US program was designed to help companies overcome these differences?
The Safe Harbor regulations were developed by the Department of Commerce and are meant to serve as a way to bridge the gap between privacy regulations of the European Union and the United States. Due to the lack of adequate privacy laws and protection on the federal level in the US, European privacy regulations generally prohibit the exporting of PII from Europe to the United States. Participation in the Safe Harbor program is voluntary on the part of US organizations. These organizations must conform to specific requirements and policies that mirror those from the EU, thus possibly fulfilling the EU requirements for data sharing and export. This way, American businesses can be allowed to serve customers in the EU. The Health Insurance Portability and Accountability Act (HIPAA) pertains to the protection of patient medical records and privacy. The Gramm-Leach-Bliley Act (GLBA) focuses on the use of PII within financial institutions. The Sarbanes-Oxley Act (SOX) regulates the financial and accounting practices used by organizations in order to protect shareholders from improper practices and errors.