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California Civil Code § 1798.82 ? New Duties to Disclose A "Security Breach"
California has revised its business laws to require notification of customers if a "security breach" leads to the disclosure of customers' personal data. The new law is codified as an amendment to California Civil Code § 1798.82 and takes effect on July 1, 2003. It applies to any person or business that conducts business in California if the entity possesses "computerized ... personal information." If a "breach of the security system" occurs, defined as any unauthorized acquisition of personal data, the business must inform affected persons "immediately" unless law enforcement requests a delay. Consumers have a private right of action under the law for injunctive and civil damages relief, but no specific monetary penalties are suggested.
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