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
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…
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:…
Continue Reading New York SHIELD Act FAQs
When privacy geeks talk “privacy,” it is not uncommon for them to use certain terms interchangeably –personal data, personal information, personally identifiable information, private information, individually identifiable information, protected health information, or individually identifiable health information. They might even speak in acronyms – PI, PII, PHI, NPI, etc. Blurring those distinctions might be OK for…
After years of data breaches, mass data collection, identity theft crimes, and failed attempts at broad-based federal legislation, 2020 may be the year that state privacy and data security legislation begins to take hold in the U.S. For example, the California Consumer Privacy Act (“CCPA”) and the New York Stop Hacks and Improve Electronic Data…