Welcome to the Future!
The SEC is mulling over requiring disclosures by publicly traded companies concerning data security and data breaches.
This should come at no suprise as in 2011, the Corporate Fiannce Division issued guidance on disclosing data security and data breaches in CF Disclosure Guidance: Topic No. 2, Cybersecurity, Oct. 13, 2011.
What’s the SEC considering risk factors that need to be disclosed?
The federal data breach bill moving through Congress will preempt all state laws. Most states have stronger data breach laws than the federal bill.
Some say the federal bill is being pushed by the business lobby. It makes sense. Businesses are being sued after data breaches and it is costing millions and millions. Hundreds of millions.
California, has stronger data security statutes and the California Consumer Federation says the federal bill will:
•Eliminate notif…
Data Security is the number one concern for credit unions according to the National Association of Federal Credit Unions.
Their concern is founded in fact. In 2014, 317 million new pieces of malware were created according to Symantec’s 2015 Internet Security Threat Report. Data breaches have been increasing by 20% per year.
This group supports legislation that includes:
Buried in the federal data breach legislation, that pre-empts state data protections in 38 states, with stronger data protection statutes, is liability protection for businesses that share data security threats and intrusions with other businesses and the government. Law360
A coalition of business groups, including:
are urging federal lawmakers to retain a provision in federal data breach legislation that will require 3rd party vendors to notify consumers when they experience a data breach.
Posted inlegislative trend, retail data breach
Target’s holiday 2013 data breach continues to breed lawsuits and settlements. Target recently settled with Mastercard for $20 million. The $20 million will go to financial institutions to: Federal data breach legislation that would preempt 38 state laws on data breach, was approved by the House Energy and Commerce Committee. The biggest rift in the committee is whether federal law should preempt stronger state laws. 38 states have stronger state laws. The federal legislation would preempt those state laws and the lower, weaker standard would prevail. Washington Post Alabama is the 48th state to enact data security laws, and one of a few that have revamped data security statutes post major retail data breaches. The Alabama legislation will triger notification within 30 days when any of the following information is hacked: Data Security and data privacy is a near and dear to Libertarian types. Think Rand Paul. Libertarian types look to the Federalists papers to justify constitutional positions, such as protecting Americans from government intrusion into their personal, private data. Pointing to Federalist Paper 33 and 44, when a national interest exists, it is necessary and proper for the federal government to act.
Posted indata privacy, legislative trend, retail data breach
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