New York law requires notification after data breaches
New York joins growing list of states requiring businesses and government to inform consumers if their sensitive data is breached.
Declan McCullagh Former Senior Writer
Declan McCullagh is the chief political correspondent for CNET. You can e-mail him or follow him on Twitter as declanm. Declan previously was a reporter for Time and the Washington bureau chief for Wired and wrote the Taking Liberties section and Other People's Money column for CBS News' Web site.
New York Governor George Pataki on Wednesday signed a bill that requires businesses and state government agencies to notify consumers if sensitive data is nabbed in a security breach. This places New York on the list of states such as California that have adopted similar rules--while many other and the federal government are considering them.
New York's new law, A.4254, applies only to sensitive information such as Social Security numbers, driver's license numbers, or credit card numbers that are not encrypted. It requires written notice, electronic notice if the account holder "expressly" consented to it, or notification through the media if the cost would exceed $250,000.