Dive Brief:
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Last week, a bill was introduced into the California state Assembly that would shift the liability of a data breach from credit cards and banks to the retailer where the breach occurs.
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AB 1710 makes retailers responsible for financial damages and for prompt notification to its customers of any breach.
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The bill would also limit the information that could be collected from customers by retailers.
Dive Insight:
The now-infamous data-security breach at Target over the holidays, actually one of several, is proving to have long legs. Not only is Target continuing to feel the pinch of the incident, but the broader issue is staying in the news and is being taken seriously by regulators and lawmakers. Look for more legislation like this to be proposed throughout the country. It’s not clear how sweeping or strict any final laws will be, but there is certainly a movement to protect consumers in this area that behooves retailers to participate in reforms.