California's Database Security Act Mandates Breach Notifications

Businesses often fail to disclose security breaches to police, let alone to the public, out of fear they will damage their reputation and open themselves to lawsuits. But Sen. Diane Feinstein (D-Calif.) is circulating a draft bill that would change that . . . Businesses often fail to disclose security breaches to police, let alone to the public, out of fear they will damage their reputation and open themselves to lawsuits. But Sen. Diane Feinstein (D-Calif.) is circulating a draft bill that would change that practice by requiring companies to reveal security breaches to their customers.

The Feinstein measure, called the Database Security Breach Notification Act, is modeled on a California law that will require companies to notify customers if the companies believe a systems breach has led to the release of personal information. The law takes effect next July.

No decision has been made yet about whether to introduce the Feinstein bill next year, according to Scott Gerber, a spokesman for the senator.

The link for this article located at ComputerWorld is no longer available.