Understanding 3 Information Security State Laws: A Guide for Businesses

In an increasingly digitalized world where sensitive and confidential information is rapidly moving online, the question of information security and privacy has become a major concern. The occurrence of data breaches and cyber attacks has not only the potential to damage a company’s reputation but can also lead to significant financial losses. To combat these risks, many states have implemented information security laws that enforce several regulatory guidelines to protect both individuals and businesses from cybercrime.

Here is a guide to three information security laws in the United States that businesses should be aware of.

1. The California Consumer Privacy Act (CCPA)

The CCPA, which went into effect on January 1, 2020, is the first comprehensive data privacy legislation in the United States. With this law, businesses that deal with California residents must comply with strict privacy standards. The CCPA outlines new data security requirements that dictate how companies must protect their consumers’ personal information. For instance, companies must disclose their data collection, share and sale practices to their consumers. Additionally, the CCPA gives consumers the right to request that companies delete or not sell their data.

Violating the CCPA can result in severe consequences. Companies may face fines of up to $2,500 per individual violation and as much as $7,500 per intentional violation.

2. The New York State Stop Hacks and Improve Electronic Data Security (SHIELD) Act

The SHIELD Act was signed into law in July 2019 and became effective on March 21, 2020. It requires businesses that collect certain types of private information, including Social Security numbers, driver’s license information, and banking information, to put into place reasonable data security safeguards for protecting personal data. The SHIELD Act requires businesses to implement appropriate administrative, technical, and physical safeguards to protect personal information.

Failure to comply with the SHIELD Act can lead to penalties of between $5,000 and $250,000 per violation.

3. Washington State’s Revised Data Breach Law

Washington State is known for its interdisciplinary, statewide approach to cybersecurity. The state’s data breach law, which was revised in 2019, broadened consumer privacy regulations. The revised law requires that companies notify consumers if there is a breach of personal information within 30 days.

Furthermore, the revised data breach law mandates that organizations must have reasonable data security standards in place. This law applies only if the company accepts or owns personal data of Washington residents.

In conclusion, it’s crucial that businesses understand the various security and privacy laws in their respective jurisdictions to stay compliant and avoid penalties and potential reputational damage. Effective security measures can reduce the risks relating to data breaches and cybercrime, safeguarding sensitive consumer information, and ensuring that businesses are operating in a compliant manner.