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Every privacy law, both state and federal, establishes stiff penalties for private citizens and companies that fail to protect their customers personal data. The fines are huge and people can go to jail for negligence that contributed to allowing the data theft to occur. But all of these laws contain a common loophole.

All levels of government are exempt from privacy laws. So when your private medical data is stolen from the county hospital, HIPA nor any of the other privacy laws on the books not will allow for the negligent parties to be punished regardless of how blatantly negligent their actions were.