Personally identifiable information: Overview, definition, and example
What is personally identifiable information (PII)?
Personally identifiable information (PII) refers to any data that can be used to identify an individual, either on its own or when combined with other information. This includes a wide range of information that may relate to a person's identity, contact details, financial status, or other characteristics. PII is sensitive in nature because it can be used to track, contact, or impersonate an individual, making it a key target for identity theft and fraud.
PII can be classified into two categories:
- Sensitive PII: Information that, if disclosed without consent, could result in harm to the individual. This includes Social Security numbers, passport numbers, financial account details, and medical records.
- Non-sensitive PII: Information that alone may not directly harm an individual if exposed, such as a person's name or email address. However, when combined with other information, it can still identify an individual.
Why is PII important?
PII is important because it is central to protecting individual privacy and security. When PII is mishandled or exposed, it can lead to serious consequences, including identity theft, fraud, and privacy violations. For businesses and organizations, safeguarding PII is crucial for maintaining customer trust, meeting regulatory requirements, and avoiding legal liabilities related to data breaches.
Various laws and regulations, such as the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the U.S., place strict requirements on how PII should be handled, stored, and protected. These regulations ensure that companies take adequate steps to safeguard personal data and respect individuals' privacy rights.
Understanding PII through an example
A retail company collects customer information during the online checkout process, such as the customer’s name, billing address, credit card number, and email address. These details are classified as PII, as they can be used to identify and contact the customer. The company must protect this data from unauthorized access or theft to prevent identity fraud or misuse.
In another example, a hospital keeps patient records that include medical history, Social Security numbers, and contact details. This type of sensitive PII is protected under laws like HIPAA in the United States, which sets strict standards for how patient information is stored and shared.
An example of PII clause
Here’s how this type of clause might appear in a privacy policy or terms of service agreement:
“The Company is committed to protecting your personally identifiable information (PII). We collect information such as your name, email address, and payment details to provide our services. We will not share, sell, or disclose your PII to third parties without your consent, except as required by law. All PII will be stored securely and used only for the purposes outlined in our privacy policy.”
Conclusion
Personally identifiable information (PII) includes any data that can be used to identify an individual, such as names, addresses, financial information, and more. The protection of PII is critical in today’s digital world, where misuse or exposure of such information can lead to significant harm, including identity theft and privacy violations. Safeguarding PII is not only important for ensuring individuals’ privacy and security but is also a legal requirement for businesses and organizations to comply with various data protection regulations. Proper handling of PII helps maintain trust, avoid legal risks, and protect sensitive personal data.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.