NY's Novel Data Security Proposal Likely To Have Wide Appeal

By Allison Grande (January 27, 2015, 2:20 PM EST) -- New York's attorney general recently floated legislation that would allow companies that implement heightened data security standards to dodge class actions and other liabilities that arise from data breaches — a novel approach that, if adopted, would give companies a stronger stance against hackers and could inspire other states to follow suit.

Just days after the White House unveiled a proposal to establish a federal breach reporting standard, Attorney General Eric Schneiderman reinforced the active role of states in regulating consumer privacy by releasing his own proposal to set baseline data security standards and broaden the state's breach notification law to...

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