Data Privacy

American businesses spend an average of $7.01 million on a single data breach, including the price of notifying potentially affected individuals and ensuing legal costs. As the amount of data collected from and about people explodes, the number of breaches has also grown. Companies affected by data breaches subsequently face significant enforcement by federal and state regulators, as well as litigation by opportunistic plaintiffs' lawyers. Data privacy, as a result, is predicted to become “the new asbestos.” Reforms can help curb unreasonable costs to businesses while still providing relief to those who have truly been harmed. Read More...

Information holders no longer just have to worry about whether employees are disposing of data correctly—from domestic hackers to hostile foreign governments, cyberattacks have grown in number and in sophistication. As businesses work to navigate the evolving landscape, they find themselves bombarded by federal and state regulators using outdated laws, to plaintiffs seeking large settlements despite showing no actual injury from a data breach.

It is unclear for businesses what the scope of their liability is and to whom. The U.S. has a patchwork of federal laws intended to protect personal information. At the same time, states laws continue to evolve, imposing different (and sometimes contradictory) requirements for data privacy, including when and how victims of data breaches must notify their customers. Regulators have struggled to keep pace with the rising number of incidents and individuals’ concerns, with the result being a piecemeal, hastily-assembled legal regime.

A standard federal law governing breach notification requirements, preempting state laws, would provide much-needed predictability for businesses and protect them from abusive and overlapping enforcement. There is public support for this commonsense solution. Only those who are actually at risk or who have been harmed by a data breach should get notice or be able to sue.

Moreover, vague laws prohibiting unfair and deceptive practices, from Section 5 of the Federal Trade Commission (FTC) Act to similar state laws, are ripe for abuse; the FTC and some state attorneys general have broadly wielded them to go after businesses’ privacy and security practices. To make matters worse, individual and class action plaintiffs, led by the plaintiff’s bar, have jumped on the bandwagon as well.

It is important that privacy laws address real harms and actual injury and place reasonable limits on liability while discouraging meritless suits that simply take advantage of businesses. Holding businesses to impossible standards and allowing excessive and duplicative litigation hurts Americans and the economy.

Suggested Resources

Research
  • Torts of the Future: Addressing the Liability and Regulatory Implications of Emerging Technologies

    Torts of the Future: Addressing the Liability and Regulatory Implications of Emerging Technologies

    March 29, 2017

    Torts of the Future examines the emerging technology sectors of autonomous vehicles, commercial drones, private space exploration, the "sharing economy," and the Internet of Things, and assesses the existing regulatory and litigation environments and future liability trends for each. The paper also draws from experience in each area to present guiding principles for addressing the liability and regulatory implications of emerging technologies. Read More

  • Engineered Liability: The Plaintiffs' Bar's Campaign to Expand Data Privacy and Security Litigation

    Engineered Liability: The Plaintiffs' Bar's Campaign to Expand Data Privacy and Security Litigation

    April 19, 2017

    As data breaches are becoming more commonplace, the plaintiffs' bar is engineer a staggering expansion of liability in the areas of privacy and data security. Class action lawyers are pursuing data privacy cases and amassing fortunes even where no one has been harmed. This paper examines the data privacy and security legal landscape, plaintiffs' bar tactics, major cases and settlements, and a suggested framework for reform. Read More

All Results for Data Privacy

  1. U.S. Treasury Calls for National Data Breach Standard

    August 01, 2018 | News

    In a series of recommendations on financial technology regulation, the U.S. Treasury Department called on Congress to create a national standard on data breach notifications, POLITICO reports.... Read More

  2. In the News Today - July 24, 2018

    July 24, 2018 | News

    TCPA the "Poster Child for Abusive Class Action Litigation," Says ILR's Kim; Top Privacy Developments Of 2018, Part 1... Read More

  3. In the News Today - July 10, 2018

    July 10, 2018 | News

    Examining California's New Data Privacy Law... Read More

  4. Judge Says Plaintiffs' Lawyers "Overreached" in $37.8 Million Fee Request

    June 15, 2018 | News

    A U.S. District judge said the 26 plaintiffs' firms in the Anthem data breach class action "overreached" by asking for nearly $38 million in fees, Law360 reports.... Read More

  5. Torts of the Future II: Addressing the Liability and Regulatory Implications of Emerging Technologies

    April 18, 2018 | Research

    The second edition of ILR's Torts of the Future research examines evolutions in regulatory and liability trends for emerging technologies including artificial intelligence, virtual reality, wearable devices, and 3D printing. The research also presents a number of updated guiding principles to inform courts, legislators, and policymakers as they seek to address privacy and safety concerns without derailing or delaying innovation.... Read More

  6. In the News Today - March 9, 2018

    March 09, 2018 | News

    Ninth Circuit Revives Claims Over 2012 Data Breach... Read More

  7. In the News Today - February 21, 2018

    February 21, 2018 | News

    SCOTUS Won't Review CareFirst Data Breach Standing Row; SCOTUS Won't Review CareFirst Data Breach Standing Row... Read More

  8. In the News Today - February 15, 2018

    February 15, 2018 | News

    Congress Urged to Adopt National Data Breach Standard; 7th Circ. Wants Extra Briefing On Fees In TCPA Cruise Deal... Read More

  9. Top 10 Legal Reform Research Topics of 2017

    January 11, 2018 | News

    Review ILR's wide-ranging top ten legal reform research topics from 2017 and gain insights for 2018.... Read More

  10. In the News Today - December 28, 2017

    December 28, 2017 | News

    Cybersecurity Spending at Law Firms, Legal Departments Is Predicted to Increase in 2018... Read More