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New California Data Security Law to Have Broad Reach

Author: Mary J. Hildebrand and Jacqueline Klosek

Recent amendments to California"s Civil Code will require companies to notify their customers of certain computer security breaches. Significantly, the law, referred to as S.B. 1386, will apply to any online business having customers in California - even if the business itself is not based in California. Accordingly, many entities that conduct online business in California are likely to be affected by this new law. Pursuant to the S.B. 1386, which will enter into force on July 1, 2003, all agencies, persons or businesses that conduct online business in California and that own or license computerized data containing personal information will be required to report breaches in the security of such data to any resident of California whose personal information has been compromised as a result of the breach.

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