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
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together post image

Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together

New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]

Author: Sean M. Pena

Link to post with title - "Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together"
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York post image

Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York

No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]

Author: Donald M. Pepe

Link to post with title - "Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York"
Company Dissolved? Legal and Financial Consequences to Expect post image

Company Dissolved? Legal and Financial Consequences to Expect

A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences.  It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]

Author: Jay McDaniel

Link to post with title - "Company Dissolved? Legal and Financial Consequences to Expect"
The Legal Implications of Signing a Triple Net Lease post image

The Legal Implications of Signing a Triple Net Lease

A triple net lease is a commercial lease in which the tenant pays the property’s real estate taxes, insurance, and maintenance costs, known as the three nets, in addition to base rent. They are most often used in freestanding retail and office buildings and in large single-tenant industrial properties, with terms that typically run 10 […]

Author: Donald M. Pepe

Link to post with title - "The Legal Implications of Signing a Triple Net Lease"
When to Settle and When to Fight: A Litigator's Framework post image

When to Settle and When to Fight: A Litigator's Framework

Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]

Author: Sean M. Pena

Link to post with title - "When to Settle and When to Fight: A Litigator's Framework"
What Is Corporate Litigation? A Clear Guide for Businesses post image

What Is Corporate Litigation? A Clear Guide for Businesses

Corporate litigation, also called commercial litigation or business litigation, is the formal legal process through which companies resolve disputes in the civil court system. When a business relationship breaks down and other resolution methods have failed, litigation provides a structured legal mechanism for asserting rights, recovering damages, enforcing obligations, and obtaining court-ordered relief. Unlike criminal […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "What Is Corporate Litigation? A Clear Guide for Businesses"

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!