New York State Enacts A New Electronic Data Privacy Protection Law

In July 2019, New York State passed the Stop Hacks and Improve Electronic Data Security Act, N.Y. G.B.L. § 899 et seq. (the "SHIELD Act"), which goes into effect on March 21, 2020.

The SHIELD Act is meant to improve consumer data security by expanding the definition of protected data, increasing notification requirements, and requiring substantive data security controls.  The SHIELD Act will make New York's data protection laws consistent with those of other states, including Massachusetts and Florida.

Who is Covered?

The SHIELD Act expands New York's electronic data protection to cover any person or business that owns, licenses, trades in, or otherwise affects the private information of any New York resident, regardless of whether the business is located in New York.