The world has entered an era of digital transformation, with data being the most valuable asset for most businesses. As companies gather, store and utilize personal data to improve their services, the need to ensure that this information is secure and protected becomes paramount. Understanding the legislative framework that governs data security is crucial for any organization.
In recent years, several information security state laws have been put in place in the United States to safeguard personal data. These laws aim to protect citizens from data breaches that can lead to financial loss, identity theft and reputational damage, among other negative effects. This article will provide three key information security state laws that organizations need to be aware of in order to stay compliant and secure.
1. California Consumer Privacy Act (CCPA)
The CCPA is a comprehensive data protection law that came into effect on January 1, 2020. It grants residents of California the right to know what personal information businesses collect about them, request the deletion of this information, and opt-out of its sale. Covered organizations must disclose their data collection activities and obtain explicit consent before sharing personal data.
The CCPA applies to organizations that operate in California, collect personal data from California residents, and meet one or more of the following criteria: have annual gross revenues of over $25 million, process the data of over 50,000 consumers, households or devices, or derive 50% or more of their annual revenue from selling personal data.
2. New York State’s data security law
Passed in 2019, New York State’s data security law requires organizations that collect or possess private information of New York residents to implement reasonable data security measures to protect this information from unauthorized access, use or disclosure. The law mandates regular risk assessments, breach notifications, and provides guidance on best security practices to prevent cyber threats.
This law applies to any organization that owns, licenses or maintains the private information of New York residents, regardless of their location.
3. Massachusetts’ data breach notification law
The Massachusetts data breach notification law went into effect in 2018, amending the previous statute that was passed in 2010. The law requires any entity that owns or licenses personal information of Massachusetts residents to notify them if their personal information is compromised in a data breach.
The law applies to businesses that collect personal information of Massachusetts residents, including financial details, social security numbers, and driver’s license numbers, among others.
In conclusion, information security state laws are designed to protect citizens’ private data from falling into the wrong hands. Companies that collect and utilize personal information must stay abreast of the regulatory landscape, implementing best practices to stay compliant. Complying with these three information security state laws is a critical first step in securing personal data and staying ahead of the curve in the digital age.
