The New York Stop Hacks and Improve Electronic Data Security Act (Shield Act) was passed on July 25, 2019 as a revision to the New York State Information Security Breach and Notification Act. The law comes into effect on March 21, 2020. With the objective of reinforcing protection for New York residents against data breaches affecting their private info, the SHIELD Act enforces more extensive data security and updates its existing data breach notification requirements.
The Shield Act New York basically enforces 2 broad obligations:
- Keep private info safe
- Provide notice of data infringements
Each of these compulsions is made up of particular rules and requirements. Businesses are liable for weighing and lessening risk, and for responding to a data breach proactively.
Why is the SHIELD Act critical?
The Shield Act is critical because it has “extraterritorial application” which means it covers all individuals, employers, or companies, irrespective of location, that collect private info on New York residents. Earlier, data breach notification requirements were limited to those that perform business in New York.