OCT 2018

MedEsthetics—business education for medical practitioners—provides the latest noninvasive cosmetic procedures, treatment trends, product and equipment reviews, legal issues and medical aesthetics industry news.

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28 OCTOBER 2018 | MedEsthetics medical practices and medspa businesses will likely not be immediately impacted. This is because one of the following three criteria must apply to your business: 1. Have annual gross revenue that exceeds $25 million; 2. Annually buy, sell, acquire or share personal informa- tion of 50,000 or more consumers; or 3. Generate 50 percent or more of your revenue by selling consumer information. If your medspa or aesthetic practice—whether in Cali- fornia or another state—does not meet any of the three criteria, you are not forced to do anything at this time. However, if your business meets any one of these three criteria, you must take steps to become compliant. The good news is, enforcement will not start until January 1, 2020, so you have time to get up to speed. Where Privacy Regulations Are Going Although this specifi c law may not immediately affect your practice, consumer privacy legislation and concerns are not going away. These concerns are driven by recent news about consumer privacy and data issues, including Face- book's Cambridge Analytica data breach scandal, privacy issues regarding the Federal Communication Commission's removal of Net Neutrality, and Equifax's customer data breach. Business Insider recently published an article listing 15 major stores from which customer data was stolen in the past year. This included brands such as Macy's, Sears, Delta Airlines, Best Buy, Saks Fifth Avenue and even fast food retailers like Arby's and Sonic. What we are seeing is likely the tip of the iceberg. It is anticipated that a number of other states will follow Cali- fornia's lead in developing laws to protect their constitu- ents' privacy and information. Medical practices, particularly high-volume nonsurgical cosmetic practices that sell products to customers online and invest in highly targeted digital marketing, will need to continue keep their eyes open on this issue. Even if your practice does not fall within the criteria to require CCPA compliance, it may be affected. There are a number of direct and indirect consequences of this growing privacy issue. Marketing. Changes in privacy laws will impact the medical aesthetic industry's ability to continue laser- targeting consumers based on their online behaviors, demographics, geo-specifi c locations, purchasing habits and other personal data. How you collect personal data to conduct internal marketing, particularly email campaigns, may also be affected. For instance, to address consumers' opt-out rights, the CCPA requires a "clear and conspicuous" link on the complying business's home page titled "Do No Sell My Personal Information," in addition to a link to the business' privacy policy. As more consumers become acquainted with this visual call-to-action, they will likely expect it with all websites, and future legislation may require it for small- er businesses. Increased Infrastructure and Compliance Costs. Complying with privacy concerns means additional expenses. For example, Google's 2018 Chrome browser update (Chrome 68) visibly notifi es users when a website is not secure ("HTTP" instead of "HTTPS"). That means practices may have to invest in a website upgrade. Thanks to HIPA A demands, many aesthetic practices are already much further along in their processes, infrastruc- ture and culture than businesses in other industries. Still, now is the time to work with your web developer and internet marketing providers to ensure compliance with privacy regulations and consumer expectations. Bill Fukui is the director of sales and marketing at Page 1 Solutions, a full-service digital marketing agency serving dentists, attorneys and doctors. Contact him at © GETTY IMAGES LEGAL ISSUES Although this specifi c law may not immediately affect your practice, consumer privacy legislation and concerns are not going away.

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