Irvine Business Lawyer Shares What You Should Know About Data Security Breaches
September 13, 2017
Data breaches have been all over the headlines in recent years. Even some of the largest companies in the world have been subject to data breaches that result in the theft of millions of customers’ personal information. While this can be extremely damaging to the credibility of any business, it can also involve serious legal consequences in certain situations.
Penalties Under the Federal Trade Commission (FTC) Act
The Federal Trade Commission (FTC) Act is a statute that aims to protect consumers from unfair or deceptive business practices. Pursuant to Section 5 of the FTC, all businesses have a general obligation to protect the personal information of customers they do business with. The FTC has the ability to impose penalties on companies that mishandle customers’ personal data or do not provide adequate protection of that information against theft.
Common Law Liability for Failure to Protect Sensitive Information
In addition to the FTC, a company can face a civil suit for negligence based on a breach of a duty to protect sensitive customer information. Customers can seek to recover damages based on this theory, which is what occurred after the Target data breach in 2013. This is why it is crucial that businesses invest wisely in protecting customer data.
Contact an Experienced Irvine Business Lawyer Today
If you have any questions about potential liability for your company’s data security practices, contact Lynne Bolduc at FitzGerald Yap Kreditor LLP at (949) 788-8900. With more than three decades of serving clients throughout Orange County, the business lawyers at FitzGerald Yap Kreditor LLP have the knowledge and experience that you can count on for all of your company’s legal needs.
