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July 2, 2019 News

CLIENT ALERT: New York Legislature Tightens Data Security Duties; Broadens Reach; Expands Penalties

July 2, 2019 – Under a bill enacted in the closing days of the New York legislative session, all businesses having personal and private data concerning New York residents will be required to adopt formal data security practices and procedures tailored to the risks and size of their business or face administrative injunctions and substantial fines and penalties.

The so-called “SHIELD Act,” drafted as a consumer protection measure at the request of the Office of the Attorney General, and now awaiting the Governor’s signature, addresses three principal issues: 1) the types of information that must be protected from breach; 2) the obligations a business must adopt to prevent a breach and to provide notice if a breach occurs; and 3) the scope of what a breach of security actually means.

The attached Client Alert provides details on the bill that is expected to be presented to the Governor for signature shortly, and would become law immediately.

PDF of Client Alert: New York Legislature Tightens Data Security Duties; Broadens Reach; Expands Penalties