Legal Implications for Data Security BreachesJuly 24, 2011
Vernick discussed the problems both businesses and consumers face when a data breach occurs, such as gaining knowledge of individual state laws and protecting private information. Because no federal legislation exists to guide companies through such situations, it can cause confusion among businesses and fear among consumers.
But despite the lack of federal legislation, Vernick says many businesses are taking matters into their own hands by upping security standards and notifying consumers even when a statute does not require them to, such as when an email address is stolen. He says some have made it a practice to offer free credit monitoring to those affected.