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
Rule 26 Expert Discovery: When an Expert Witness Uses AI, Is It Discoverable? post image

Rule 26 Expert Discovery: When an Expert Witness Uses AI, Is It Discoverable?

Case law following the 2010 amendments to Federal Rule of Civil Procedure 26 offers guidance on how courts are likely to address whether an expert witness’s AI records are subject to discovery. Key Takeaways Rule 26 Expert Discovery After the 2010 Amendments This article addresses the question courts and lawyers have faced in recent cases: […]

Author: Chris Seelinger

Link to post with title - "Rule 26 Expert Discovery: When an Expert Witness Uses AI, Is It Discoverable?"
How Expert Witness AI Use Ends Up in Discovery post image

How Expert Witness AI Use Ends Up in Discovery

“Show how 3M is 0% at fault.” The absurd tale of how a 350-page ChatGPT history for 3M’s expert witness was produced during a deposition is more likely than you think. It’s an inevitable trend, and an unsettled question for federal courts as experts make generative AI part of their workflow. Key Takeaways Expert Witness […]

Author: Chris Seelinger

Link to post with title - "How Expert Witness AI Use Ends Up in Discovery"
The Screenshot Problem: Why Nothing Is Really Private Anymore post image

The Screenshot Problem: Why Nothing Is Really Private Anymore

Screenshots have changed the risks of electronic communications. The screenshot problem is that messages intended for one person or a small group can be copied, forwarded, preserved, and ultimately presented to opposing counsel, regulators, journalists, customers, or a jury. Businesses should recognize that a truly private digital conversation is increasingly unreliable and ensure their policies, […]

Author: Sean M. Pena

Link to post with title - "The Screenshot Problem: Why Nothing Is Really Private Anymore"
BESS Project Agreements: Allocating Risk Among Developers, EPC Contractors, and Equipment Suppliers post image

BESS Project Agreements: Allocating Risk Among Developers, EPC Contractors, and Equipment Suppliers

Developers, engineering, procurement, and construction (EPC) contractors, and equipment suppliers each play a critical role in completing a BESS project. However, when equipment costs rise, deliveries are delayed, or regulations change, determining who bears the financial consequences can become contentious. Well-drafted project agreements are essential to sound risk allocation. Key Takeaways This article is Part […]

Author: Nicholas Wall

Link to post with title - "BESS Project Agreements: Allocating Risk Among Developers, EPC Contractors, and Equipment Suppliers"
IP Infringement: What Steps Can You Take If You're Affected? post image

IP Infringement: What Steps Can You Take If You're Affected?

IP infringement occurs when someone uses your intellectual property without your permission or beyond the scope of the permission you granted. Common examples of IP infringement include copying a product’s patented features or using a trademarked logo in a way that is likely to confuse consumers about the source or affiliation of goods or services. […]

Author: Michael Mietlicki

Link to post with title - "IP Infringement: What Steps Can You Take If You're Affected?"
Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next post image

Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next

When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]

Author: Sean M. Pena

Link to post with title - "Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next"

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.
“If you would like to submit a file, please email it directly to info@sh-law.com.

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