Restaurants in New York City will soon gain access to valuable information about their delivery customers.  On July 29, 2021, the New York City Council approved a bill requiring third-party food delivery services (“FDS”), such as Uber Eats, DoorDash, and Grubhub, to share customer data – including names, phone numbers, delivery and mailing addresses, and

In late May, New York Attorney General Letitia James announced a $200,000 settlement agreement with Filters Fast, an online water filtration retailer, stemming from a 2019 data breach compromising the personal information of over 300,000 consumers across the U.S., including nearly 17,000 in New York state.  The settlement also requires the online retailer to strengthen

On May 13th, New York State Senator Kevin Thomas, Chair of NY’s Consumer Protection Committee, reintroduced the New York Privacy Act (“NYPA”), a comprehensive consumer privacy law similar in kind to the California Consumer Privacy Act (“CCPA”), California Privacy Rights Act (“CPRA”), and Virginia’s Consumer Data Protection Act (“CDPA”).  The NYPA had been 

As we noted in our last post, there has been a flurry of data privacy and security activity in New York, with the State appearing poised to join California as a leader in this space.  Most recently, on April 29, 2021, the New York City Council passed the Tenant Data Privacy Act (“TDPA”), which

Effective July 9, 2021, certain retail and hospitality businesses that collect and use “biometric identifier information” from customers will need to post conspicuous notices near all customer entrances to their facilities.  These businesses will also be barred from selling, leasing, trading, sharing or otherwise profiting from the biometric identifier information they collect from customers.  Customers

COVID-19 drove many formerly in-person interactions onto a variety of video conferencing platforms.  But as millions of vaccinations are administered each day, and case numbers decline, it’s now possible to imagine and plan for the time when conducting business over video will no longer be mandatory.

For many organizations, though, COVID-19 has led to an

In 2018, the California Consumer Privacy Act (“CCPA”), which provides for an expansive array of privacy rights and obligations, was enacted.  At the time, it was reasonable to wonder whether California’s bold example would catalyze similar activity in other states.  It’s clear now that it has.   Virginia recently passed its own robust privacy law,

Already at the cutting edge of U.S. privacy law, California jumped even further ahead of the pack with the recent approval by State voters of the California Privacy Rights Act (“CPRA”).  The CPRA, which builds upon the already extensive framework of privacy rights and obligations established in the California Consumer Privacy Act (“CCPA”), is likely

On July 21, 2020, the New York Department of Financial Services (“DFS”) filed its first enforcement action under New York’s Cybersecurity Requirements for Financial Services Companies, 23 N.Y.C.R.R. Part 500 (“Reg 500”).    Reg 500, which took effect in March 2017, imposes wide-ranging and rigorous requirements on subject organizations and their service providers, which are summarized

Over the past few months, businesses across the country have been focused on the California Consumer Privacy Act (CCPA) which dramatically expands privacy rights for California residents and provides a strong incentive for businesses to implement reasonable safeguards to protect personal information. That focus is turning back east as the Stop Hacks and Improve Electronic Data Security Act (SHIELD Act), becomes effective in less than two weeks. With the goal of strengthening protection for New York residents against data breaches affecting their private information, the SHIELD Act imposes more expansive data security and updates its existing data breach notification requirements.

This post highlights some features of the SHIELD Act. Given the complexities involved, organizations would be well-served to address their particular situations with experienced counsel.

When does the SHIELD Act become effective?

The SHIELD Act has two effective dates:

  • October 23, 2019 – Changes to the existing breach notification rules
  • March 21, 2020 – Data security requirements

Which businesses are covered by the SHIELD Act?

The SHIELD Act’s obligations apply to “[a]ny person or business which owns or licenses computerized data which includes private information” of a resident of New York. Previously, the obligation to provide notification of a data breach under New York’s breach notification law applied only to persons or businesses that conducted business in New York.

Are there any exceptions for small businesses?

As before the SHIELD Act, there are no exceptions for small businesses in the breach notification rule. A small business that experiences a data breach affecting the private information of New York residents must notify the affected persons. The same is true for persons or businesses that maintain (but do not own) computerized data that includes private information of New York residents. Persons or businesses that experience a breach affecting that information must notify the information’s owner or licensee.

However, the SHIELD Act’s data security obligations include some relief for small businesses, defined as any person or business with:
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