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Louisiana Proposal Seeks to Expand Access to Damages from Data Breaches and Negligence |
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Louisiana residents would be allowed to file lawsuits against businesses to seek actual damages stemming from a negligent breach of their personal information, under a bill introduced recently in the Louisiana House.
The bill (H.B. 1234) amends the state's 2005 data breach notification statute. Under the current law (S.B. 205), which took effect Jan. 1, 2006, individuals may sue only for actual damages resulting from the failure of a business to provide the required notice of a breach incident.
H.B. 1234 would retain the current breach notice law's individual right of action provision, but it would add that:
Where a person or institution requires personal information to offer a for pay-service and through its negligence in maintaining that information, personal information is disclosed to unauthorized third parties, then a civil action may be instituted by the person whose personal information was disclosed for equitable relief and to recover actual damages resulting from the disclosure.
In addition, H.B. 1234 would allow individuals to seek to recover the cost of five years of credit monitoring from a business that negligently breached personal information that could be used "to facilitate identity theft or used to compromise the commercial credit" of the individual whose information was compromised.
The Louisiana Legislature is slated to close its 2008 regular session June 23.
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