Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Could Environmental Law Help Address Data Breaches?

Author: Scarinci Hollenbeck, LLC

Date: March 12, 2014

Key Contacts

Back

Data breaches are a growing threat to U.S. businesses. In the wake of Target’s high-profile data theft, which impacted more than 110 million consumers, and the more recent theft of consumer data from Neiman Marcus who disclosed that hackers invaded its systems for several months in a breach that involved 1.1 million credit and debit cards, security experts, federal lawmakers, and business leaders are all working to determine how best to protect sensitive information from falling into the wrong hands.

At a recent privacy symposium hosted by the University of Maine School of Law, Professor Dennis Hirsch of Capital University Law School proposed a novel approach to data protection. His source of inspiration — oil spills.

In his forthcoming paper, The Glass House Effect: Big Data, Oil Spills and the Need for Clean Data Technology, Hirsh takes the oft quoted analogy “’big data’ is the new oil” and extends it to spill prevention and cleanup. “Data spills occur with the regularity of oil spills. The victim of identity theft, bogged down in unwanted credit cards and bills, is just as trapped and unable to fly as the bird caught in the oil slick, its wings coated with a glossy substance from which it struggles to free itself,” he writes.

Hirsh further argues that environmental law can provide strategies that allow businesses to take advantage of big data’s many benefits, while reducing its negative impacts. He specifically cites the Clean Water Act and Oil Pollution Act as examples.

For instance, Hirsch notes that victims of data breaches are often unable to recover the full extent of their damages because they must demonstrate a “concrete and particular harm” that is “actual or imminent.” Accordingly, damages related to emotional distress and the risk of future damages are generally not allowed. As Congress expanded the Oil Pollution Act to allow for greater recovery for oil spill victims, Hirsh suggests that lawmakers should pass federal legislation that allows for the recovery of noneconomic damages created by data breaches.

In addition, Hirsh calls for legislation that authorizes a federal agency to clean up after data spills (i.e., investigating the root causes, determining the severity of the breach, and providing credit monitoring and identity theft recovery services to the public). The federal government could then recoup its expenses from the responsible party.

Finally, Hirsh notes that increasing liability for data breaches will only accomplish so much, just as it does in the oil industry. Akin to the push for viable sources of “clean energy,” Hirsh calls for the prevention of data breaches through new, “clean data” technologies and privacy-protective business models.

Hirsh acknowledges that his policy proposals are “intended (to be) provocative suggestions (rather) than full-fledged proposals . . . to spark creative thinking about solutions.” However, out-of-the box thinking may be just what is needed to solve this pressing and complex problem.

If you have any questions about the proposals discussed or would like to discuss your company’s data protection strategies, please contact me, Cyber Jurist. Fernando Pinguelo, or the Scarinci Hollenbeck attorney with whom you work. To learn more about data privacy and security, visit eWhiteHouseWatch – Where Law, Technology & Politics Collide.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Don’t Overlook the Importance of Business License Management post image

Don’t Overlook the Importance of Business License Management

If you operate a business without the proper license, you risk fines, insurance issues, reputational harm, and even business closure. Even innocent mistakes, like forgetting to renew a license, can have significant consequences, such as losing your lawsuit for payment of services that are unlicensed, which makes it imperative to have business license management procedures […]

Author: Dan Brecher

Link to post with title - "Don’t Overlook the Importance of Business License Management"
Failing to Comply With NJ Rent Control Exemption May Prove Costly post image

Failing to Comply With NJ Rent Control Exemption May Prove Costly

What Developers Need to Know About New Jersey’s Rent Control Exemption Law to Ensure Entitlement to Exemption for Newly Constructed Multi-family Housing.  A property owner in Jersey City is facing a $400 million federal class action lawsuit alleging that the landlord did not follow the procedural steps required to be eligible for exemption from local […]

Author: Patrick T. Conlon

Link to post with title - "Failing to Comply With NJ Rent Control Exemption May Prove Costly"
Crypto Securities Law: When Tokens Become Investment Contracts post image

Crypto Securities Law: When Tokens Become Investment Contracts

The application of traditional federal securities laws to crypto assets continues to evolve. In some cases, the Securities and Exchange Commission (SEC) considers tokens and other digital assets to be securities. This makes them subject to federal securities law, including the Securities Act of 1933 and the Securities Exchange Act of 1934. This classification has […]

Author: Bryce S. Robins

Link to post with title - "Crypto Securities Law: When Tokens Become Investment Contracts"
The Due Diligence Process for NY Condominiums and Cooperatives post image

The Due Diligence Process for NY Condominiums and Cooperatives

While the New York City real estate market can be extremely competitive, moving too quickly often backfires. Before purchasing a condominium or cooperative in New York City, it is important to do you homework. Purchasing property in NYC can involve a dizzying number of legal issues. These include condo and co-op rules, rent restrictions, and […]

Author: Jesse M. Dimitro

Link to post with title - "The Due Diligence Process for NY Condominiums and Cooperatives"
Smart Contract Legal Issues: Drafting Agreements for Blockchain post image

Smart Contract Legal Issues: Drafting Agreements for Blockchain

Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]

Author: Bryce S. Robins

Link to post with title - "Smart Contract Legal Issues: Drafting Agreements for Blockchain"
Are Stay Interviews the Key to Retaining Top Talent? post image

Are Stay Interviews the Key to Retaining Top Talent?

Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]

Author: Angela A. Turiano

Link to post with title - "Are Stay Interviews the Key to Retaining Top Talent?"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!