4 Takeaways of the Stop Hacks and Improve Electronic Data Security (SHIELD) Act

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State: New York

Stop Hacks and Improve Electronic Data Security Act: NY Senate Bill S6933A (2018)

What do I need to know to sound like I know about the SHIELD Act?

  • it covers both disclosure of hacks & securing information
  • for businesses it uses the increasingly common standard of :”“reasonable safe-guards to protect the security, confidentiality and integrity” of private information.”
  • The carrot: no new causes of action are created
  • The stick: violations fall under the Deceptive Trade Practices Act and fines accrue per violation

National Law Review | A Primer on the SHIELD Act: New York’s Move to Adopt More Stringent Data Security Requirements, Part II