This legislation covers the handling of personal information, and how it must be protected.
Essentially it states that any entities that have legal reason for collecting information about individuals (or other entities, such as businesses) must take reasonable precautions to prevent it being lost, or stolen.
This can vary in the amount of protecting required from simply having a password on a computer, to full blown 24 hour backup of data and high level encryption of data.
With some social network sites there are options for privacy of the user and their posts, which can be used to prevent any attempts to gain information through this method. An example of security settings can be seen on this video for the site you currently see this post from! http://www.youtube.com/watch?v=rU2UU_zpcdU
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