Legislature Passes New Data Breach Protections for Consumers

Provisions increase transparency, improve credit monitoring and provide better consumer notifications

(BOSTON) – Representative Malia (11th Suffolk) joined her colleagues in the House and Senate to announce legislation enhancing protections for consumers against data breaches.

The bill includes provisions that make it easier for consumers to monitor their credit, request security freezes on data, limit fees associated with data breach protections as well as requires transparency from breached companies and their affiliates.

The bill requires breached entities to provide more detailed consumer notifications about data breaches and options to help consumers better protect themselves.

Highlights of the legislation include:

• Requires consumer consent prior to the use of a credit report;

• Requires breached entities to provide details of the breach to the Attorney General and the Office of Consumer Affairs and Business Regulation;

• Requires the breached party to disclose its parent or affiliated corporation;

• Requires breached entities and breached consumer reporting agencies to provide 1.5 and 3.5 years, respectively, of credit monitoring services to residents free of charge; and

• Requires breached entities to contract with a third party to provide credit monitoring services and blocks those third parties from making reciprocal agreements in lieu of payment or fees.

The bill now moves to the Governor for his consideration.

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