Jenner & Block

Client Alert: New York SHIELD Act Goes Into Effect

On March 21, 2020, the cybersecurity provisions of the New York “Stop Hacks and Improve Data Security” (SHIELD) Act go into effect.  The SHIELD Act puts New York into the small but growing list of states requiring that companies that control resident data take specific actions to protect that data.  While much ink has been spilt on the move by New York to join this minority, the requirements of the SHIELD Act are likely familiar to businesses that have been taking steps to protect consumer data.  Thus, although the SHIELD Act represents a new potential avenue for regulatory liability to businesses, it is likely that businesses will not have to take many—if any—additional internal steps to come into compliance with the cybersecurity provisions of the SHIELD Act.  Below we detail the Act’s cybersecurity elements.

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