Lege TREND. Business Email Protections.

Why is statutorily protecting business email correspondence increasingly important to law makers?

Data.

What does the FBI data say about business email hacking?

  • 136% increase in identified global losses between December 2016 and May 2018
  • losses from business email total  $12.5 billio

Are there other terms I need to watch for in legislation/from clients?

  • cyber-enabled financial fraud

National Law Review | Privacy and Cybersecurity Issues to Watch in 2019

Attorney General. Data Broker Law. To write your states law with Business Guidance.

IN 2018, Vermont became the first state to regulate data brokers.

What is a data broker? 

  • A business that
  • knowingly collects and sells or licenses to third parties
  • brokered personal information of a consumer
  • with whom the business does not have a direct relationship

What business guidance did the Vermont Attorney General offer?

  • If Vermont courts do not have jurisdiction, then this law does not apply to a business
  • Does it establish an opt out requirement for consumers? no
  • Will businesses…

Legal TREND. Cities Suing Tech Companies Over Location Data Gathering.

Los Angeles City Attorney filed suit against the Weather Channel App for not properly disclosing that the app retains user location data.

Where would I see this in legislation? in fraud, deceptive trade practices, competititve practices, cybersecurity bills that protect geolocation

Engadget | LA sues Weather Channel app owner over ‘fraudulent’ data use

Refresher: Legislative Draft. Business Safe Harbor. Cybersecurity state legislation.

Ohio was the first state to create a safe harbor for business in its 2018 cybersecurity legislation. SB220 (OH | 2018)

How did Ohio craft its liability protection for businesses? A business has to do 1 of these:

(1) Create, maintain, and comply with a written
cybersecurity program that contains administrative, technical,
and physical safeguards for the protection of personal
information and that reasonably conforms to an industry
recognized cybersecurity framework, as described in…

Lege TREND. Top Data Security State Legislation in 2019.

  • California Privacy Act.  Will other states replicate it? Is it the US solution for GDPR?
  • Federal Preemption. Will Congress pass federal data breach notification standards?
  • Data Privacy Requirements for Internet of Things.  Privacy standards for your home thermostat, etc… See California’s SB 327 (2018)
  • Will small businesses get a carve out bill? See S770 (115th Congress)
  • Federal Preemption of Data Encryption Standards for Business

Sc Media | Top cybersecurity legislation of 2019

Lege TREND. Experts speak. What should an ideal data security law look like? 9 quick points

According to lawyers wirting in the Harvard Business Review, a data security regulatory system should:

  • focusing more on systemic ways to address cyber threat
  • not treat businesses punitively 
  • require the federal government to take a more active role in cyber defense
  • require the federal government to share cybersecuity knowledge with the private sector
  • require agencies to “issue pragmatic, cost-effective operational guidance to companies on how to defend against evolving risks”
  • incentivizing…

3 Reasons Government Help Needed to Stop Data Breaches. Businesses Are Victims Too.

 

  • Thinking on these laws is backwards. Laws should switch from punishing coporations to realizing in data breaches, companies are most likely also victims of criminal activity
    • it is not a fair framework to punish companies
    • and it is not effective enforcement
  • Limited cyber experts. It is impossible for “every company in America to have sufficient internal cyber expertise to manage the risk.”
  • The robbery analogy. When a bank is robbed, do we blame the bank? No.

Harvard Business Review…

3 Reasons a State Chamber of Commerce Supported a Data Security Bill

What did the Michigan Chamber of Commerce tout as reasons to support a Data Security bill, HB 6405 (MI | 2018) that required businesses to do certain new tasks concerning data breaches:

  • The Chamber likes a specific time frame to notify affected persons
    • The chamber did not like phrasing, within a reasonable time
  • Is ok with “reasonable mandates” on businesses
  • The Chamber supports “.. a consumers’ right to know that their personal identifying information was compromised”

Michigan Chamber of…

4 Reasons State Cybersecurity Laws Beat Federal Cybersecurity Laws.

  • More attention at the state level. States have been targets of hackers and that fuels their regulatory structures
  • Agility. States can respond more quickly legislatively
  • More to Lose. States are closer to local level data breaches and are as impacted by local breaches
  • Business Accountability State resources also support businesses that have been impacted by hackers

 

Baltimore Post Examiner | Why is State Cybersecurity better than Federal Cybersecurity?

Lege TREND. State Legislation Reacting to Marriott Breach. What you need to know:

New Jersey legislature is moving A3245 (2018 |NJ) which is in repsonse to the Marriott data breach and will:

  • Expands the state data breach notification requirements to include disclosure of:
    • usernames
    • email addresses
    • any passwords
    • security questions and answers
  • The authors say prompt notification is required for people to keep their online acocunts protected

Insider NJ | Assembly Panel Clears Caputo & Murphy Bill Requiring Disclosure of Online Security Breaches