Data security law sparks concerns [telecom]

Data security law sparks concerns

Massachusetts rule may boost exposure for companies

Judy Greenwald Apr. 04, 2010

Data security regulations in Massachusetts, which many describe as the most stringent such rules to date, are proving to be a challenge for businesses, observers say.

The regulations, which apply to any company that has personal information on a Massachusetts resident regardless of whether the business is based in the state, could lead to increased litigation against firms, legal experts say.

The rules that Massachusetts implemented last month based on a 2007 law are likely to influence other states in developing their own regulations, experts say.

Unlike most previous data security rules, Massachusetts' regulations require businesses to proactively implement security measures to protect personal information before a data breach occurs.

The 2007 law, however, is ambiguous about fines for violating the data protection requirements. It also is unclear how vigorously the state attorney general will enforce the provisions. The law was delayed and revised several times in response to complaints by businesses about its feasibility and expense.

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***** Moderaotor's Note *****

My new employer has given me a new laptop, which has a built in provision to encrypt the entire hard disk. The encryption is done by the laptop's hardware, not the Operating System, and I've been assured that the hard drive is unreadable in any other machine.

The point is that I don't think protecting data is that hard to do.

Bill Horne Moderator

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