New York Enters First Settlement Agreement for Violation of Its Security Breach Notification Law
Posted by Thomas Jeffry
Last Thursday, New York Attorney General Andrew Cuomo announced that his office had entered into its first settlement under that state’s Information Security Breach and Notification Law enacted in 2005.
When it comes to notification that private information on a stolen laptop computer may be compromised, time is not your friend. The New York law requires notification to “the owner or licensee of the information of any breach of the security of the system immediately following discovery, if the private information was, or is reasonably believed to have been, acquired by a person without valid authorization.” In addition, both the owner and licensee of such information has an obligation to disclose, “in the most expedient time possible and without unreasonable delay,” any breach in the security to any New York resident “whose private information was, or is reasonably believed to have been, acquired by a person without valid authorization.” (New York State General Business Law § 899-aa) The law includes the common provision that such notification may be delayed if a law enforcement agency determines that such notification impedes a criminal investigation
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