NEW JERSEY LEGISLATURE ENACTS DATA BREACH BILL
April 18, 2019
The New Jersey Assembly and Senate recently passed legislation to expand requirements for companies to inform their customers in the state when consumer records have been the subject of a data breach.
While existing law already requires New Jersey businesses to notify customers of breaches, the new law widens the scope of situations that are covered, and specifies appropriate, attention-getting methods for companies to disclose breaches (e.g., conspicuous notices on public websites or when logging into a customer portal). The theory of the expanded disclosure is to ensure that consumers are able to promptly take steps to secure their finances and monitor their situation when data breaches inevitably occur.
New Jersey is among several other U.S. states, most prominent among them California, who have enacted or are considering consumer data privacy legislation. These laws generally impose new compliance requirements on companies holding consumer data. Carriers must ensure that they comply with all applicable data privacy laws, including those in individual U.S. states, in the event of a data breach. If you have questions about data and privacy law or need assistance with any emergent issues, please contact us.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com or 202-659-6622); Drew Derco (dderco@eckertseamans.com or 202-659-6665), or Alexander Matthews (amatthews@eckertseamans.com or 202-659-6633).
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