One of the major issues with data security breaches involves what kind of notification companies should provide. The spate of data security breach announcements began in February 2005, when ChoicePoint announced its breach pursuant to California’s data breach notification law. At the time, California was the only state that mandated individual notice following a breach. Subsequently, numerous states passed laws requiring that companies notify individuals of breaches. Federal legislation is currently being considered to create a national security breach provision. But key questions remain in hot contention. First, what kind of breach should trigger a notification? If the risk of harm is low, some companies contend, then providing notice can be quite costly with little benefit in return. Second, what kind of notice should be given? Notice to each individual affected? Notice to the media or FTC only?
The United States v. Ziegler case I wrote about in a previous post brings to mind a radical employment law case decided last December in New Jersey. [Thanks to Charlie Sullivan and Timothy Glynn for bringing the case to my attention]. The case is Doe v. XYC, 887 A.2d 1156 (N.J. Super. 2005). Since I couldn’t find a version of it online, I’ve posted a copy here.