New York SHIELD Act Data Security Requirements Become Effective

New York SHIELD Act Data Security Requirements Become Effective

March 22, 2020, Covington Alert

On March 21, 2020, the data security requirements of the New York Stop Hacks and Improve Electronic Data Security (SHIELD) Act (the “Act”) became effective. These provisions require businesses that own or license computerized data that includes the “private information” of New York residents to maintain “reasonable” security measures. Generally speaking, the Act’s provisions expand both the kinds of businesses and the types of information that are subject to the data security requirements. The Act also provides more detail about what New York’s data security requirements are and how to comply with them. Businesses that own or license information of New York residents should evaluate the extent to which these requirements might apply to them and, if so, whether their current data security practices comply with the Act’s newly-effective requirements.