Relating to a business's duty to protect sensitive personal information contained in its customer records.
If enacted, SB327 would amend the Business & Commerce Code to formalize the legal obligations of businesses regarding data protection. Ultimately, this bill seeks to enhance consumer protection by holding businesses accountable for safeguarding sensitive information against breaches. The ramifications of such legislation could lead to a higher standard of data security across the state, explicitly outlining the responsibilities of businesses in protecting customer information. This development is in response to the increasing instances of data breaches and identity theft that have become prevalent in the digital age.
SB327 aims to address the duty of businesses to protect sensitive personal information contained within customer records. This legislation mandates that businesses implement and maintain reasonable security procedures to prevent the unlawful use and disclosure of personal data collected during the regular course of business. It introduces requirements for businesses that collect or maintain sensitive data in connection with access devices such as credit and debit cards, specifically emphasizing compliance with payment card industry data security standards.
Notable points of contention surrounding SB327 involve the balance between enforcing rigorous data protection standards and the potential compliance burden placed on smaller businesses. While proponents argue that enhancing security measures is essential to protect consumers and maintain trust in the digital economy, critics may highlight the challenges smaller entities face in meeting these mandatory compliance standards without incurring significant costs. Additionally, the bill outlines that financial institutions can take legal action against businesses for data breaches, potentially leading to litigation disputes and further implications on the business environment.