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California Privacy Law May Unleash Data Breach Lawsuit Wave

Oct. 9, 2019, 11:28 AM

Businesses may face an increased risk of data breach litigation when the California Consumer Privacy Act takes effect in January, attorneys said.

Right to Sue: Under the law, Californians will be able to sue a company that experiences a data breach of certain unencrypted personal information because it didn’t have reasonable security procedures in place.

What’s New: Although California residents already could sue for violations of the state’s data breach notification statute, the new private right of action allows consumers to seek statutory damages of between $100 and $750 per consumer per incident, sums that could quickly add up. Sara...

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