Creates affirmative defense for certain breaches of security.
Impact
If enacted, SB 2464 would significantly alter the legal landscape for data security in New Jersey. It would require covered entities to develop and adhere to comprehensive cybersecurity protocols, incorporating administrative, technical, and physical safeguards. This move is seen as a proactive step to enhance consumer protection, ensuring entities handle personal information responsibly. Moreover, it aims to mitigate the risks of identity theft and fraud stemming from data breaches, thus potentially reducing the financial and reputational impacts of such incidents on both consumers and businesses.
Summary
Senate Bill 2464, introduced in the New Jersey Legislature, establishes an affirmative defense for certain breaches of security pertaining to personal and restricted information. The bill aims to protect covered entities, which include businesses and governmental units, by providing a legal mechanism to defend against claims resulting from breaches provided they maintain adequate cybersecurity programs. The legislation outlines specific requirements for what constitutes a compliant cybersecurity program, referencing various industry-recognized frameworks for cybersecurity enhancements.
Contention
The bill may face scrutiny regarding its implications for consumers' rights. Notably, it explicitly states that it does not provide a private right of action, which raises concerns among some advocacy groups that victims of data breaches might have limited recourse. Critics argue that this could undermine the ability of individuals to seek restitution or hold entities accountable for negligence in data protection. The balance between encouraging robust cybersecurity measures and ensuring consumer rights remains a key point of contention in the discussions surrounding this legislation.
A bill for an act relating to affirmative defenses for entities using cybersecurity programs and electronic transactions recorded by blockchain technology.(See SF 495.)
A bill for an act relating to the use of certain technology, including the legal effect of the use of distributed ledger technology or smart contracts and affirmative defenses associated with the use of cybersecurity programs.(See HF 553.)
Requests the Dept. of Economic Development to study cybersecurity issues faced by businesses in compliance with the Cybersecurity Framework Standards promulgated by the National Institute of Standards and Technology