According to the Privacy Act of 1974, what governs the collection of personally identifiable information?

The correct answer, which identifies the Code of Fair Information Practice, is fundamental to understanding how the Privacy Act of 1974 establishes guidelines for the collection of personally identifiable information (PII). This code outlines essential principles aimed at protecting individuals' privacy rights and ensuring that their personal information is handled transparently and fairly by federal agencies.

The Code of Fair Information Practice sets the groundwork for the obligations of federal agencies with respect to PII collection, including requirements for informing individuals about the use of their data, giving them a chance to access and correct their information, and implementing security measures to protect this information from unauthorized access or disclosure.

This structured approach helps achieve a balance between the government's need to collect and utilize personal information for legitimate purposes and the individual's right to privacy, forming the cornerstone of the Privacy Act's regulatory framework. Understanding this code's principles is crucial for compliance and for addressing any potential insider threats that may arise related to the misuse of PII.