California’s sweeping data security legislation should serve as a model for the nation and states according to the National Consumers League (“NCL”).
NCL also commends the 10 states that have enacted data security legislation requiring businesses to implement data security protocols. The Hill
Posted indata privacy, legislative trend, retail data breach
Winter 2013 brought a large data breach for Target. Various lawsuits ensued. Financial institutions sued. Individuals sued. Target had sought to dismiss the suit brought by 5 financial institutions. The judge said, “NO,” in one of the first rulings of its kind allowing financial institutions to sue retailers for data breaches. Judge Magnuson also said, “imposing a duty on Target in this case will aid Minnesota’s policy of punishing companies that do not secure consumers’ c… Winter 2013 brought a large data breach for Target. Various lawsuits ensued. Financial institutions sued. Individuals sued. Target had sought to dismiss the suit brought by 5 financial institutions. The judge said no. Judge Magnuson also said, “imposing a duty on Target in this case will aid Minnesota’s policy of punishing companies that do not secure consumers’ credit- and debit-card information.” [
Posted inbanking, data privacy, legal trend, legislative trend, retail data breach
Retailers support uniform notification requirements. Pawlenty, head of the Financial services Roundtable, wants them to go a step further. He wants businesses to meet the high standards that financial institutions have to meet. [The Hill] Multidistrict litigation found its new bread and butter in data breach lawsuits. The Credit Union National Association determined that the Home Depot data breach cost credit unions $60 million. $60 million hit includes the cost to reissue cards, deal with fraud and cover other costs. [Atlanta Business Journal] Data Security is a concern for businesses large and small. These associations are urging fair reform that doesn’t overburden businesses, large or small: Alabama Grocers Association Data breaches don’t only affect retail establishments and customers, banks and credit unions are also affected. Each data breach requires new credit and debit cards to be printed and mailed, and for fraudulent charges to be covered. This comes at a hefty cost to financial institutions. The “
Posted inbanking, legislative trend, retail data breach
The 2014 Home Depot data breach litigation has raised the very tort issues that data breach legislation addresses- venue and consolidation. Whenever there are a lot of injuured parties, spread out throughout a state or country these issues arise. Data security breaches are the new pharmaceutical class action. [National Law Review] A New Jersey data security bill is called best practices for businesses and government, but also increases the costs of government and of doing business. The bill would require notification for more data breaches. Like most states notification in New Jersey was required for traditional indentify fraud issues- like when a name and social security number are released. The new legidslation requires disclosure of a breach if usernames and email addresses, in combination with a… Lots of nobel bills become studies and reports when the opposition is vocal. For the last years, the Attorney General of California has released data breach reports. In 2013, there were 167 breaches reported to the California Attorney General, exposing data of 18.5 Million Californians. The California Attorney General also makes the following recommendations: For the health care industry: – Use strong encryption to protect medical info…3 Articles on Banks and Credit Unions Suing Retailers After a Data Security Breach
Retailer has breach. 5 Banks sue. Litigation continues to Protect Public Policy. Tort Reform on Horizon.
Pawlenty: Businesses Should Be Held to A Higher Standard on Data Protection
39 Lawsuits from HomeDepot Data Breach
40 Merchant Groups Urge Action on Data Security
American Hotel and Lodging Association
California Retailers Association
Conexxus
Florida Petroleum Marketers and Convenience Store Association Food Marketing Institute
Georgia Association of Convenience Stores
Illinois Retail Merchants…Cost to Financial Institutions for Data Breaches
Data Security Litigation: Tort Reform
NJ Data Security Bill Cruising Along. Cost of Business Going Up.
State Data Breach Reporting- Example California