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After a data breach: Navigating state disclosure laws
Following the lead of California-the first state to enact a data breach notification law-39 states currently have a data breach notification law on the books.
Banannas.com was hit with fines for not complying with various state data breach laws, and trying to research breach laws overwhelmed its small staff and simultaneously notifying affected customers.
If your organization conducts business online, with customers from all over the U.S., or abroad, not only must you comply with your own state's data breach notification laws, you must comply with the data breach notification laws from the states of the affected customers.
When to send a notification is tricky in some instances.
For instance, Arizona prohibits some local law enforcement and state agencies from disclosing a security system breach, but Illinois requires an immediate notification of the breach.
In some states, data breach notification laws are based only on possible harm, injury, fraud or identity theft, and if there is no reasonable probability of any of these, data breach notification is not required.
Other states require notification in almost all circumstances. Florida and Ohio are the only states to set a time period for a business to notify consumers.
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