Final answer:
The Privacy Act of 1974 establishes the federal government's legal responsibility to protect PII. Other relevant laws include the Fair Credit Reporting Act, HIPAA, and COPPA, which safeguard financial, health, and children's online information, respectively.
Step-by-step explanation:
The law that establishes the federal government's legal responsibility for safeguarding PII (Personally Identifiable Information) is the Privacy Act of 1974. This act prevents the unauthorized disclosure of personal information held by the federal government. Additionally, other laws such as the Fair Credit Reporting Act of 1970 protect personal financial information, while the Health Insurance Portability and Accountability Act (HIPAA), passed in 1996, ensures the protection of patient health information. The Children's Online Privacy Protection Act of 1998 (COPPA) specifically allows parents to manage the collection of their children's online information.
The debate over privacy continues, especially regarding the government's access to individual cyber information versus constitutional rights to privacy. The ongoing development of technology and digital data storage raises concerns about the security and use of that data, balancing individual privacy with government protection and regulation.