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Alabama enacts data breach notification law

Privacy/Cyber Risk & Data Security State Issues State Legislation Data Breach State Attorney General

Privacy, Cyber Risk & Data Security

On March 28, the Alabama governor signed SB 318, The Alabama Data Breach Notification Act of 2018 (Act), which requires entities doing business in the state to (i) notify consumers within 45 days if their personal data has been compromised in a data breach; and (ii) notify the state Attorney General and consumer reporting agencies if more than 1,000 individuals have been impacted. The Act also states that third-party agents, entities that have been contracted to maintain, store, process, or otherwise access sensitive personally identifying information in connection with providing services to a covered entity, are required to notify the covered entity of a breach of security “no later than 10 days following the determination of the breach of security or reason to believe the breach occurred.” Additionally, the Act gives the state Attorney General authority to prosecute a failure to disclose a data breach as an unlawful act or practice under the Alabama Deceptive Trade Practices Act, which can result in daily penalties of up to $5,000 per violation. However, entities that follow the notice requirements of industry-specific state or federal laws or regulations are exempt from the Alabama legislation. The law is effective June 1.

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