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Arizona Drops the Ball With Weak Data Breach Bill
Posted on Apr 26, 2006 by Tom Fragala
Arizona’s state legislature has passed a data breach notification law that is currently awaiting the signature of Governor Janet Napolitano. While the law may have been well intentioned, it has some critical flaws and we are urging the Governor to veto it.
This is because it has two very big loopholes. First and foremost, the law allows companies to decide if a data breach is important enough to warrant consumer notification. Secondly, the law exempts banks, hospitals and government agencies from compliance.
After a number of states, including California, have passed effective data breach laws—and they have proven to be hugely successful at protecting consumers—it’s a travesty that Arizona is considering passing such a law. The exemption for banks, hospitals and government is a rotten idea. It may be worse that no law at all, lulling its citizens into a false sense of security. This law screams for a veto.
Filed under: Data Breach
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