Law360 recently published an article authored by Culhane Meadows’ New York partner, Caroline Morgan, in which she discusses the differences in how California and New York have enforced their new consumer privacy laws.
Here’s a short synopsis of the article:
In 2020 two powerful privacy laws came into effect, the California Consumer Privacy Act and New York’s Stop Hacks and Improve Electronic Data Security Act.
Generally, the CCPA provides consumers with access to and control over their personal information that businesses collect. The SHIELD Act protects the private information of New York residents by imposing data breach notification and data security program requirements on companies.
Businesses can avoid hefty fines and reputational harm by learning how the attorney general of each state has enforced their new law.
The SHIELD Act can apply to a company that is not doing business in New York.
Before delving into early enforcement actions, it is worthwhile to dispel the common misconception that the SHIELD Act only applies to New York businesses. It is true that the purpose of the SHIELD Act is to protect the private information of New York residents; however, it applies to a company wherever it conducts business so long as it owns or licenses the private information of a single New York resident.
Given this expansive territorial range coupled with its substantial penalties including up to $250,000 for breach notification violations and an uncapped amount for violation of its data security standards, a business’s compliance strategy will undoubtedly be more robust if it determines whether the SHIELD Act applies to it in addition to the CCPA. With that we can now turn to early enforcement, as discussed below.
Read the entire article HERE.
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The foregoing content is for informational purposes only and should not be relied upon as legal advice. Federal, state, and local laws can change rapidly and, therefore, this content may become obsolete or outdated. Please consult with an attorney of your choice to ensure you obtain the most current and accurate counsel about your particular situation.
