New Massachusetts Privacy Legislation – Are you Protected?
BackgroundPrivacy legislation, data security, e-commerce, multimedia advertising, cloud computing – these terms engender both opportunity and challenge to commerce. Legislation, case law, privacy and data security obligations continue to grow and burden American businesses along with the normal risks associated with products and services. There are increasingly complex risks assumed in internet opportunities and obligations.ProblemUnder Massachusetts’s new privacy legislation 201CMR17.00 passed March 2010, internet and wireless transmissions from most devices are in non-compliance should “restricted” information be discussed or transmitted over easily (or accidentally) intercepted channels. It appears that few people understand the statute, including law enforcement, police and fire, the attorney general’s office, the federai government, and most lawyers. Ugly consequences such as litigation, fines, and unwanted publicity are likely seen to be the most obvious.SolutionAII enterprises conducting on-line transactions are prudent to purchase insurance coverage “modules” for protection of “sensitive” data, both electronic and hard copy. Legal defense costs, claims and settlement costs are available with specialty insurance products to protect against theft and misuse of “protected” data (credit card, account, and social security numbers, for example). Most businesses with experienced management are looking at the cost-benefit of privacy and network security insurance protection for both client and employee data.
