breach notification

This spring has seen significant legislative activity with regards to state data breach notification laws, ranging from new laws in Alabama and South Dakota to amendments to existing laws in Oregon, Arizona, and elsewhere.  Continuing this trend, three states recently passed legislation to amend their existing data breach notification laws.  Legislation recently passed in Colorado will require notification of affected individuals and the state Attorney General within 30 days, while recent amendments to Louisiana’s data breach notification law will expand the scope of personally identifiable information (“PII”) covered by the law.  In addition, Vermont recently passed legislation that will create specific data breach notification requirements for “data brokers.”  This post examines each state’s amendments in greater detail below.

Colorado

Through the passage of H.B. 1128, which takes effect on September 1, 2018, Colorado has broadened the definition of PII under its existing data breach notification law, in addition to requiring notification of the state Attorney General and imposing strict notification timelines.  Once the new provisions enter into force, covered entities will be required to notify affected individuals within 30 days of the determination that a breach has occurred.  Colorado joins Florida as the only states that have imposed a 30-day notification deadline for notice to individuals, although Colorado’s law, unlike Florida’s, will not include a provision that allows for an extension of this deadline under certain limited conditions.  In addition, Colorado’s amendments will require notification of the state Attorney General if a covered entity believes that more than 500 state residents have been affected by a breach.  As with individual notifications, the notification to the state Attorney General must be provided within 30 days  after the date of determination of a breach.Continue Reading Colorado, Louisiana, and Vermont Add to Recent Trend of Changes to State Data Breach Notification Laws

On April 24, 2018, Senators Amy Klobuchar (D-MN) and John Kennedy (R-LA) introduced the Social Media Privacy and Consumer Rights Act of 2018.  The bill aims to protect consumers’ online data by increasing the transparency of data collection and tracking practices, and requiring companies to notify consumers of a privacy violation within 72 hours.

“Our bill gives consumers more control over their private data, requires user agreements to be written in plain English and requires companies to notify users of privacy violations,” Senator Kennedy explained. “These are just simple steps that online platforms should have implemented in the first place.”

Other features of the legislation include providing consumers a right of access to see what information about them has been collected and used, allowing consumers to opt out of data collection and tracking, and requiring online platforms to have a privacy program in place.  Senator Klobuchar explained that “[c]onsumers should have the right to control their personal data and that means allowing them to opt out of having their data collected and tracked and alerting them within 72 hours when a privacy violation occurs and their personal information may be compromised.” 
Continue Reading Senators Klobuchar and Kennedy Introduce Privacy Legislation

Earlier this month, the UK Government published a consultation on plans to implement the EU Directive on security of network and information systems (the “NIS Directive”, otherwise known as the Cybersecurity Directive).  The consultation includes a proposal to fine firms that fail to implement “appropriate and proportionate security measures” up to EUR 20 million or 4% of global turnover (whichever is greater).

We summarise the UK Government’s plans below, including which organisations may be in scope — for example, in the energy, transport and other sectors, as well as online marketplaces, online search engines, and cloud computing service providers — and the proposed security and incident reporting obligations.

Organisations that are interested in responding to the consultation have until September 30, 2017 to do so.  The UK Government will issue a formal response within 10 weeks of this closing date, and publish further security guidance later this year and next.  A further consultation on incident reporting for digital service providers will be run later this year; the Government invites organisations that are interested in taking part to provide appropriate contact details.
Continue Reading UK Government Proposes Cybersecurity Law with Serious Fines

Delaware Gov. John Carney has signed into law a bill that will impose more stringent obligations for notifying affected Delaware residents in the event of a data breach, in addition to establishing requirements for Delaware businesses to maintain “reasonable” data security practices.  In addition to expanding the types of information that would require notification of affected individuals if breached, the amendments will also require an entity to provide credit monitoring services if the breach involves Social Security numbers.  Once the bill enters into force, entities will also have to notify the Delaware Attorney General if a breach affects more than 500 Delaware residents.  The amendments will enter into force on approximately April 14, 2018.
Continue Reading Delaware Amends Data Breach Notification Law to Require Credit Monitoring, Attorney General Notification

Last week, New Mexico and Tennessee both passed legislation updating each state’s requirements for notifying residents following a data breach.  New Mexico’s new law, H.B. 15, makes it the 48th U.S. state to enact a state data breach notification law, leaving Alabama and South Dakota as the only states that have not enacted similar laws.  Tennessee’s bill, S.B. 547, amended its Identity Theft Deterrence Act of 1999 to exempt certain encrypted data from triggering notification requirements.
Continue Reading New Mexico Becomes 48th State with Data Breach Notification Law; Tennessee Restores Exemption for Encrypted Data

New York Attorney General Eric T. Schneiderman announced this week that there were a record number of data breach notices in New York in 2016, with nearly 1,300 reported data breaches exposing the personal records of 1.6 million New Yorkers.  These numbers represented a 60 percent year-over-year increase in the number of data breaches reported, and a threefold increase in the number of records exposed.

According to an analysis conducted by the Attorney General’s office, which builds on a 2014 report, most of the exposed records consisted of social security numbers and financial account information, and the leading causes of data security breaches in New York were hacking and inadvertent disclosures.  Schneiderman’s statement cautioned that these record numbers make it “all the more important for companies and citizens alike to take precaution when sharing and storing personal data” as “these breaches too often jeopardize the financial health of New Yorkers and cost the public and private sectors billions of dollars.”
Continue Reading NY Data Breaches Reached Record Levels in 2016

Last week, the Office of Management and Budget issued an updated breach response policy for federal agencies, replacing a policy last updated in 2007.  The policy, set forth in memorandum M-17-12, provides minimum standards for federal agencies in preparing for and responding to breaches of personally identifiable information (PII).   In addition to setting forth

On Tuesday, the FTC issued new guidance for businesses on responding to data breaches, along with an accompanying blog post and video.  The data breach response guidance follows the issuance of the FTC’s “Start with Security” data security guidance last year and builds upon recent FTC education and outreach initiatives on data security and cybersecurity issues.  The FTC’s data breach response guidance focuses on three main steps:  securing systems and data from further harm, addressing the vulnerabilities that led to the breach, and notifying the appropriate parties. 
Continue Reading FTC Issues Guidance for Responding to Data Breaches

On October 11, 2016, the finance ministers and central bank governors of the Group of 7 (G-7) countries announced the publication of the Fundamental Elements of Cybersecurity for the Financial Sector, a non-binding guidance document for financial sector entities.  The publication  describes eight fundamental “elements” of effective cybersecurity risk management to guide public and private sector entities in designing cyber security programs based on their specific risk profile and culture.  The goal of the G-7 is to provide a common framework for the financial sector to develop security programs that will “help bolster the overall cybersecurity and resiliency of the international financial system.”

The eight elements describe the core components of a comprehensive cybersecurity program, while leaving the strategic and operational details to each entity.  The publication is not intended to serve as a binding, one-size-fits-all set of requirements; rather, it describes high-level programmatic “building blocks” that each entity can customize to its own security strategy and operating structure.  Each entity should tailor its application of the elements based on an evaluation of its “operational and threat landscape, role in the sector, and legal and regulatory requirements,” and be informed by its specific “approach to risk-management and culture.”Continue Reading G-7 Publishes Fundamental Elements of Cybersecurity for the Financial Sector