Certainly it led to more reporting back in the early 2000s when California passed its law long before Congress seemed to have any appetite for such legislation. “Our constituents are continually asking for greater protection. Generally, a “breach” is defined as an unauthorized acquisition of computerized data that compromises the security, confidentiality, or integrity of PII maintained by the person or business. Those headaches are further compounded for multinational companies by foreign laws that allow for heavy penalties seemingly directed at U.S.-based tech firms. We pay our respects to the people, the cultures and the elders past, present and emerging. Therefore, a data breach affecting residents located in all 50 states, the District of Columbia and the U.S. territories could potentially require 50 or more different versions of notices that comply with each jurisdiction’s particular requirements. the security breach and restore the reasonable integrity, security, and confidentiality of the data system. Each state’s data breach notification law functions to protect the residents of their respective states. In the United States, companies are largely not required by law to protect your personal data. The chart is a summary of basic state notification requirements that apply to entities who “own” data. Home » Mandatory Data Breach Notification in Canada: Understanding Your New Obligations Mandatory Data Breach Notification in Canada: Understanding Your New Obligations . Photo by Roberto Schmidt/AFP via Getty Images. Slate is published by The Slate Group, a Graham Holdings Company. Several of the proposed bills – including the Data Security and Breach Notification Act and the SAFE Data Act – direct the Federal Trade Commission to promulgate regulations on data security and notification. Further, data breach notification laws change frequently. New America, and Cyber Investigation Expert: Federal Data Breach Law Expert | Computer Breach Investigation Expert | Computer Investigation Expert | Cyber Forensics Expert To Top Call Now 866.795.7166 By Philip N. Yannella & Kristen Poetzel Ricci on September 13, 2018. such notification shall be delayed upon written notice from such Federal law enforcement agency to the business entity that experienced the breach. The Data Breach Notification laws which started in California in 2003, and have now spread over most of the USA, have provided a stimulus to companies doing business there to take the protection and use of the personal data in their care with much greater seriousness and commitment realising that their companies’ reputations are at stake. The Act expands the kinds of personal information covered by the District’s data breach notification law. A uniform federal law governing notification of data breaches would be welcome, but it should pre-empt related state laws if it is going to be helpful to employers, observers say. Due to the increased complexity and challenge in responding to a data breach arising from the differences between the various state data breach notification laws, the most important consideration is swift action in compliance with the applicable law(s) once the breach is discovered.  Examples of federal data privacy and protection laws are: HIPAA (Health Insurance Portability and Accountability Act), which protects individuals’ medical and other health information; GLBA (Gramm-Leach-Bliley Act), which requires financial institutions to protect their individual customers’ personal and financial information; and COPPA (Children’s Online Privacy Protection Act), which protects the personal information of children under 13 years of age. All contents © 2020 The Slate Group LLC. In the meantime, businesses and practitioners will need to contend with the current patchwork of federal and state laws in the event of a data breach. social security numbers), health data, or financial data. Move quickly to secure your systems and fix vulnerabilities that may have caused the breach. The Data Security and Breach Notification Act of 2015, “aims to tackle the nation’s growing data security threats and challenges.” So far, that sounds pretty good to me. Under each state’s data breach notification laws, a resident of a state must receive notice of the breach according to the law of that particular state. Data breach notification laws concern “personal information” or “personally identifiable information” (“PII”) of individuals, which is generally defined as an individual’s first name/initial and last name in combination with unencrypted sensitive data such as a social security number, driver’s license number, bank account number or credit/debit card number, medical or health insurance information, or a computer user name and password. States have enacted security breach notification laws that require businesses or government to notify consumers or citizens if their personal information is breached. Generally, data breach notification laws apply to persons or businesses that own or license computerized data that includes PII. Moreover, Congress has waited so long to act that it already has a lot of examples it can draw on and learn from when it comes to data protection legislation—besides the CCPA, there’s the European General Data Protection Regulation, the Japanese Act on the Protection of Personal Information, the Brazilian General Data Protection Law, and the Indian Personal Data Protection Bill that appears to be nearing passage in India, to name just a few. And it’s not just embarrassing, it’s actively harmful—to consumers whose personal data is being stolen or exposed on a regular basis and to companies that lack clear guidance on how they should be protecting their customers’ data. The notice timing requirement varies widely among the states and demands a close review of the applicable individual state laws. Notification or discovery of security breach, but notification not required if, after an appropriate investigation by the person or after consultation with the relevant federal, state, or local law enforcement agencies, person determines that a risk of identity theft or other fraud to any consumer is not reasonably likely to occur as a result of the breach. ); definitions of “personal information” (e.g., name combined with SSN, drivers license or state ID, account numbers, etc. All rights reserved. On July 25, New York Governor Andrew Cuomo signed two data security and breach notification bills into law. With these steps in place, businesses can be confident that they are doing everything possible to safeguard the personal data of their customers and employees in compliance with the law. (A) O THER FEDERAL LAW.—An agreement under paragraph (1) shall not effect a covered entity's obligation to provide notice of a breach of security or similar event under any other Federal law. Data Security Breach Notification Laws Gina Stevens Legislative Attorney April 10, 2012 Congressional Research Service 7-5700 www.crs.gov R42475 . For example, the California Consumer Privacy Act allows California residents whose PII is disclosed in a data breach to claim statutory damages of up to $750 per resident per incident or actual damages, whichever is greater, and individual residents may combine their claims into a class action. Companies may also be required by state data breach laws to act to minimize the effects of a breach. Summary: Alabama became the final state in the U.S. to enact a data breach notification law on March 28, 2018. Read a New Short Story by Paul Theroux About a Future Pandemic, The Best Video Games We Played This Year (We Had Time for Lots of Them). In today’s digital world in which a data breach can occur at any time to any business, every business needs to have a plan for how it will respond to a data breach and then train its employees to identify and report a breach when it occurs. It isn’t a surprise that breach notification has become the token data protection regulation in the United States. Examples of federal data privacy and protection laws are: HIPAA (Health Insurance Portability and Accountability Act), which protects individuals’ medical and other health information; GLBA (Gramm-Leach-Bliley Act), which requires financial institutions to protect their individual customers’ personal and financial information; and COPPA (Children’s Online Privacy Protection Act), which protects the personal information of children under 13 years of age. 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