New California Law Requires Companies to Disclose Breaches of Database Security
10.1.2003
California has recently enacted three laws that will significantly effect the way California and non-California businesses conduct their affairs with California residents. On July 1, a new law took effect that protects California residents against identity theft. That new law requires companies maintaining databases that include personal information about California residents to disclose any breach in the security of those databases. Please note that because of the nature of the internet and computer access to data located everywhere, these new laws require compliance by companies wherever located, as long as they collect information about, or send e-mail to, California residents. Please also note that there are efforts to enact federal legislation that might preempt one or more of these new California laws, and of course they are expected to be challenged in court if they are not preempted first; but none of that has happened yet. Please find a client alert further describing this new law here.
