Proposed Bill Could Make Retailers Liable for Data Breach

The impact of the recent Target data breach continues to be felt, as state lawmakers attempt to make retailers take responsibility for damages, as opposed to the financial institutions. As of now, banks and credit card companies have been footing the bill for the damages that have resulted from hacked data.

A bill has been introduced by two California legislators that could take a significant stand on retailer responsibility in the event of a consumer data breach.

Assemblyman Roger Dickinson and Assemblyman Bob Wieckowski introduced AB 1710, which has the goal of increasing consumer privacy, providing adequate fraud and identity theft protection, and keeping personal information safe.

Says the Credit Union Times, “AB 1710 would make a person or business liable for the reimbursement of the costs of providing notice of a breach to any California resident whose personal information was, or is believed to have been, acquired by an unauthorized person, and for the reasonable and actual cost of card replacement as a result of a breach, to the owner or licensee of the information.”

The legislation is a variation of one that has been vetoed in two different forms by former Governor Arnold Schwarzenegger.

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