Trust is the basis of any relationship. The interaction between businesses and customers is no exception. One important way organizations build trust with customers is by protecting the customer’s personally identifiable information (PII). Yet PII compliance is more than a trust-building tool, it’s a requirement for any business operating in the modern market. 

State, regional and national regulations govern how PII must be collected, stored and used. Meeting PII compliance standards is your legal responsibility. It can also improve your relationships with customers and help your business avoid costly fines. Beyond basic compliance, proper PII management can also improve operational efficiency by ensuring you have the information you need to personalize and enhance marketing. 

What follows is everything you need to know about personally identifiable information, including regulations, best practices, and relevant technologies. Learn how to mitigate risk, maximize efficiency, and enhance consumer trust through proper PII management.

What is PII Compliance and Why It Matters

Personally Identifiable Information (PII) is any information that can be used to identify a person. Common examples of PII include: 

• Full name
• Email
• Social security number (SSN)
• IP address
• Birthdate
• Gender
• Zip code
• Credit card information
• Mailing address
• Race
• Religion
• Place of birth

PII compliance is the practice of following rules and regulations governing the collection, storage, use, and disposal of personally identifiable information. These regulations vary by region but they all exist for the same purpose—to protect consumers.

Compliance with PII standards can be complex, but it’s also a necessity. Compliance is legally mandated and enforced. As such, proper compliance helps businesses to minimize their risk of fines and lawsuits related to personal data. It improves overall operational efficiency by organizing data in meaningful ways and empowering personalization of marketing messages. Transparency around data protection can also improve consumer trust and build the brand’s reputation. More than 70% of consumers say they are attracted to brands that increase their sense of safety and security.

Global Regulations Governing PII

While there is no single set of global regulations governing PII, various countries and regions of the world have developed standards. Businesses may be subject to these guidelines whether they are located within the region or are just doing business with residents of that region. Businesses should understand the various rules and how they may interact.

Here are five different sets of PII guidelines that may impact your business, regardless of where you are located. The information listed below is a basic introduction to the scope of each rule. For more detailed information on compliance standards, consult a qualified attorney. 

• General Data Protection Regulation (GDPR) - the consumer rights and data handling regulations of the European Union went into effect in May 2018. Any business with customers in the EU is subject to these guidelines and may need to pay fines if they do not comply. GDPR outlines data protection principles, accountability standards, and regulations on data security, privacy, and consent. 
• California Consumer Privacy Act, as amended (CCPA) – CCPA protects the rights of California consumers to know about and request deletion of personal information as well as opt out of the sale or sharing of their PII. Later, the California Privacy Rights Act (CPRA) amended the CCPA with the right to correct inaccurate information and limit the use and disclosure of sensitive information. 
• Health Insurance Portability and Accountability Act (HIPAA) – U.S. Healthcare Data is protected by HIPAA. The regulations apply to healthcare providers, health plans, healthcare clearinghouses, and business associates of these covered entities. One common misconception is that all personal and health data is protected by this regulation, however, only covered entities are subject to HIPAA. Employers may be considered a covered entity if they offer health plans and only in relation to health plan records.
• Payment Card Industry Data Security Standard (PCI DSS) – All organizations that store, process, or transmit cardholder data are subject to PCI DSS compliance standards. These require that you build and maintain a secure network to protect cardholder data with strong access control measures and vulnerability management. Networks must be monitored and tested regularly and organizations must have an information security policy in place. Compliance is enforced by major global credit card and payment processing companies.‍
• ISO/IEC 27001 – A global information security framework published by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC) is the world’s only internationally recognized certifiable information security standard. ISO/IEC 27001 is not enforced by law, except in cases where governments independently adopt the standard as a prerequisite for contractors. However, it is a gold standard of information security around the world.

Types of PII

PII can be sorted into various categories. The type of PII may influence how the data must be used and stored. Each piece of data, known as an identifier, may be characterized as direct or indirect and sensitive or non-sensitive. 

Direct identifiers are tied to a single, specific person. These might include name, social security number, or passport number. Indirect identifiers must be combined in order to reveal identity. These may include a person’s IP address, device ID, or geolocation data. 

Sensitive PII brings an increased risk of harm if the data is compromised or disclosed without permission. Improper sharing of sensitive PII may harm reputations, finances, or safety. It can cause embarrassment or inconvenience and expose a person to unfair treatment. A person’s social security number is sensitive PII while their zip code is non-sensitive. 

However, the degree of sensitivity also depends on context. Multiple pieces of non-sensitive data stored together may become sensitive if the combination reveals something the person would rather not share. Direct identifiers are more likely to be considered sensitive regardless of context. 

Organizations that collect, store and use PII should implement extra security measures for sensitive PII and direct identifiers. Encryption, access limitations, and gaining consent before sharing can help protect sensitive PII.

PII Across the Data Lifecycle

PII requires protection across all stages of the data lifecycle, from collection through deletion. Below we outline some of the key compliance considerations at each stage.  

• Collection: Gain appropriate consent and tell users exactly what data will be collected and how it will be used. Users should be able to control whether and what data will be collected. Only collect data that is necessary for your purposes. Irrelevant data is a liability.
  
• Storage: Securely store all data with appropriate encryption and access controls for the sensitivity of the data. Encryption is especially important for data stored in the cloud. Remember that you are responsible for the integrity of your vendors. Perform regular audits to identify vulnerabilities before they become breaches.
  
• Usage: PII should only be used for the specific purpose for which it was collected. Gain consent before using data in a new way. Use the minimum viable data for the purpose. Log and track how data is being accessed and by whom.
  
• Sharing: When sharing data with partners, vendors, or other stakeholders, gain consent from the user first. Share only the necessary PII for the purpose and implement contractual safeguards that outline responsibilities for PII compliance.
  
• Deletion: GDPR and CCPA both give the subject of the data the right to control information about them. They can request that their data be corrected or destroyed. Implement a secure erasure process to ensure that all PII is destroyed completely. If data is to be archived, store the archive securely. 

Vulnerability at any stage of the data lifecycle puts PII at risk, along with the reputation of your business. Businesses that collect, use and store PII should have a documented data governance framework and incident response plan for each stage of the cycle.

Best Practices for Staying Compliant

Compliance can be complex and the best source of guidance on staying compliant comes directly from a qualified attorney or Data Compliance Officer. However, there are some best practices that most organizations would benefit from following. 

Maintain Updated Data Maps And Inventories 

Data inventories are catalogs of all of the data assets held by your organization. They should include the type, purpose, location, classification and planned retention period for each piece of data. Data maps explain how the data moves through the organization. They note who has access to the data as well as how it is processed, stored, deleted or archived. 

Maps and inventories matter because most modern privacy laws require that you maintain records of what information has been collected and how it has been used. They also require data holders to honor a user’s request to delete, correct, or view data about themselves. Maps and inventories ensure that you can thoroughly honor these requests. In the event of a breach, they allow you to understand and notify users of exactly what data may have been exposed. 

Run Data Protection Impact Assessments (DPIAs)

Data Protection Impact Assessments are a systematic investigation of the potential risks posed by collecting data. The GDPR requires them to be completed before any project that is likely to involve “a high risk” to user information. The CPRA takes this requirement a step further. The latest proposed regulations as of May 9, 2025 requires that DPIAs be completed at least once every three years. 

“High risk” situations might include introducing a new technology, tracking user locations or behavior, processing sensitive PII, and selling or sharing personal information. If you’re using data to make decisions that could have legal ramifications, or if leaks could potentially result in physical harm to the user, a DPIA is essential.

Appoint a Data Protection Officer (DPO) when applicable

The GDPR requires that many organizations appoint a data protection officer who is an expert on the relevant laws and practices of data protection. This person is responsible for ensuring that the organization handles data appropriately. They must be able to act independently and be provided with the staff and resources necessary to fulfill the role. 

Guidelines on which organizations need a DPO leave room for interpretation. However, published guidelines name the processing of geo-location data for statistical purposes and the processing of personal data for behavioral advertising by a search engine as examples of large-scale processing that requires the appointment of a DPO. 

Even organizations not subject to GDPR or that do not meet the threshold for a required appointment may benefit from having a dedicated data protection professional on staff.

Use Privacy-Enhancing Technologies (PETs)

Privacy-enhancing technologies safeguard the privacy of user data while enabling analysis and collaboration. These might include pseudonymization, homomorphic encryption, and secure multi-party computation. These technologies are evolving rapidly to meet the needs of modern businesses and AI-based systems. 

Technology to Consider for PII Compliance

Certain technologies can help organizations comply with privacy regulation by helping them to appropriately collect, store, and protect data. Organizations should check privacy policies and have contracts with technology vendors that specifically outline how PII will be handled.

Consent Management Platforms (CMPs) help businesses get, manage, and document user consent for data processing on their website. On the front end, a CMP serves pop-ups or banners to solicit consent. On the back end, they block cookies prior to consent, update cookie lists, and share consent information with third-parties involved in data processing. Importantly, CMPs should also store proof of consent in a central repository. Remember, compliance doesn’t just require you to gain consent, it requires you to document that consent was gained.

Secure Customer Data Platforms (CDPs) and Data Warehouses combine data from multiple sources into a single, centralized database. This data may come from brand websites, search engines, vendors and partners, email interactions, or social media platforms. Once centralized, data can be used to personalize marketing. Centralizing data in this way allows you to ensure data is accurate, fulfil deletion requests, and provide users with access to their data if asked to do so.

Anonymization and Pseudonymization Tools allow you to process and use data while minimizing the risk that data will be inappropriately shared. Modern data anonymization tools may encrypt, synthesize, or otherwise obscure PII to protect sensitive data. Pseudonymization tools replace sensitive data with aliases to preserve data structure while masking PII. The array of available tools is too broad to fully explore here.

Common Consumer Data Mistakes & How to Avoid Them

Three common data handling pitfalls are most likely to expose an organization to risk. These mistakes are often the result of disorganization or overzealousness. 

1. Over-collecting data without legal basis - While the right data can be helpful, this is a case where more is not necessarily better. Organizations must be able to show that they have a legitimate business purpose for collecting each piece of data.
   
2. Lack of consent tracking/documentation - Just getting consent is not enough. You also need to be able to prove that you have it. At any point you should be able to produce documentation showing when you received consent, from whom, and in regards to which specific pieces of information.
   
3. Unmanaged shadow IT or vendor access - Organizations find themselves in a difficult situation when a contract IT provider or vendor disregards compliance standards. You are responsible for the actions of any partner or vendor who accesses the data that you manage. Stringent access policies and consistent vendor reviews and internal audits can help you keep tabs on exactly who has access to your data and how they use it. 

Take the Next Step Toward PII Compliance

This article is for informational purposes only and does not constitute legal advice. Every organization’s data practices and compliance obligations are unique. If you have questions or concerns about how your business collects, stores, or uses personally identifiable information (PII), we strongly recommend consulting with a qualified privacy professional or conducting a formal PII compliance audit tailored to your specific needs.

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