In today’s digitized world, businesses are necessarily collecting more and more consumer data and grappling with how to protect this data. The prevalence of data breaches continues to increase, alongside growing concerns over consumer privacy. When it comes to data breach liability, businesses should know their responsibilities and consumers should know their rights.
Business Responsibility For Securing Personal Data
Generally, businesses have a duty to take reasonable measures to protect consumer data from breaches. Businesses are required to implement comprehensive security measures to safeguard consumer data and prevent unauthorized access. Businesses are also obligated to disclose any incidents of a breach to the affected individuals. Transparency and timely communication regarding data breaches are crucial to protect consumer rights, enable them to take appropriate actions, and mitigate potential harm.
When a data breach occurs, businesses must promptly investigate and assess the extent of the breach. Once they have a clear understanding of the incident, including the types of data compromised and the potential risks involved, they should inform the affected individuals without undue delay. This notification allows individuals to take necessary precautions, such as changing passwords, monitoring their financial accounts, or implementing additional security measures to prevent further harm.
Consumer Rights in the Event of a Data Breach
Consumers have the right to be promptly informed about a data breach that affects their personal data. Businesses are obliged to notify affected individuals about the breach, including details such as the nature of the breach, types of data compromised, potential risks, and any actions individuals can take to protect themselves. In some cases, individuals may have the right to seek compensation for damages resulting from a data breach. This typically applies when the breach leads to financial loss, identity theft, or other harm.
Data Breach Litigation
Bad actors become more sophisticated every day, and data breaches are unfortunately not uncommon. In some cases, a business’s lack of security or lack of protocols to notify consumers can result in class action litigation.
San Francisco 49ers
The San Francisco 49ers recently agreed to settle a class action lawsuit stemming from a February 2022 ransomware attack on the team’s data servers. The attack exposed personal and in some cases sensitive information of over 20,000 people including employees and fans. The proposed settlement requires the 49ers to create a new position to oversee IT operations and to hire a dedicated cybersecurity professional..
T-Mobile
A class action lawsuit was recently filed against T-Mobile for failing to implement adequate data security practices, leaving its systems vulnerable to a cyberattack. The attack in question is still being investigated but it potentially affected thousands of consumers and revealed their full names, Social Security numbers, and other personal information.
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