AN ACT to amend Tennessee Code Annotated, Title 29 and Title 47, relative to civil liability.
Impact
The bill's passage would significantly alter the landscape of civil liability in Tennessee, especially for companies handling personal and sensitive information. By limiting liability, it encourages organizations to invest in cybersecurity measures without the fear of being overwhelmed by legal actions following breaches. Supporters of the bill argue that this change is necessary to stimulate business growth and promote innovation in cybersecurity practices, as companies might be more willing to undertake cyber defenses without the looming risk of class-action lawsuits.
Summary
Senate Bill 2018 seeks to amend the Tennessee Code Annotated to provide liability protections for private entities in the event of cybersecurity incidents. Specifically, the bill states that a private entity is not liable in class action lawsuits resulting from a cybersecurity event, unless the event was caused by willful and wanton misconduct or gross negligence on the part of the entity. This legislation is aimed at fostering a more secure environment for businesses handling sensitive information by minimizing the potential for lawsuits arising from cyber incidents, which can be unpredictable and costly.
Sentiment
Overall sentiment towards SB 2018 appears to be favorable among the business community and organizations advocating for reduced regulatory burdens. They view it as a necessary step in protecting against the increasing complexity and volume of cybersecurity threats. However, there are voices of dissent who express concerns that this may undermine consumer protections and accountability for businesses, potentially easing the burden on enterprises that fail to adequately protect sensitive customer information.
Contention
Notable points of contention surrounding the bill center on the balance between protecting businesses from excessive liability and ensuring that consumer rights and protections are upheld in the event of data breaches. Critics argue that by restricting the ability of consumers to seek reparations through class-action lawsuits, the bill could lead to a culture of negligence among businesses, as they may feel less incentivized to prioritize cybersecurity unless they face direct financial consequences for lapses in security.