Articles Posted in Legal Developments

In the European Union, data privacy is a fundamental right.  Think life, liberty and the sanctity of your Gmail inbox.  The EU’s data privacy laws are therefore more stringent than similar laws in the United States.  From 1995, when the EU’s laws came into effect, until 2000, this was a big problem for US companies doing business internationally.  Compliance with stricter data privacy laws is expensive, logistically difficult, and – well – really, really expensive.

On July 26, 2000, everything changed.  The European Commission adopted the “Safe Harbor Adequacy Decision.”  This allowed US companies to opt-in a self-certify that they complied with a stipulated set of US/EU data privacy standards.

On October 6, 2015, everything changed.  Again.

Beware of the checks your on-line privacy and security policies write. If your you-know-whats can’t cash them, plaintiffs might.

Increasingly, plaintiffs are filing lawsuits after “hackers” access their personal information through undersecured websites or electronic databases. Almost every company holds some type of customer information in electronic form. As companies enhance their web presences, many have posted security and privacy policies. If you’re a business owner, you likely have one (if you don’t, you should). And if you’ve ever used the internet (if you haven’t, you’re not reading this article), you’ve seen links to these at the bottom of web pages, and you’ve probably ignored them. I certainly have.

Here’s the problem for businesses – hackers are hard to find and are usually judgment proof. If your data security is breached, and if your customers want to sue somebody, they are going to sue you.

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