A Federal Cyber Security Law Coming Your Way?

On Thursday, June 29, 2017, Sens. Hatch and Markey introduced the "Promoting Good Cyber Hygiene Act" that would direct the National Institute of Standards and Technology (NIST) to establish a set of baseline voluntary best practices for safeguarding against cyber intrusions that would be updated annually. The legislation would also direct the Department of Homeland Security (DHS) to study cyber security threats to internet-connected devices generally referred to as the "Internet of Things." Similar legislation was introduced in the House by Reps. Eshoo and Brooks.

Looking at the first part of the Senate Bill (the NIST directive), the resulting best practices will likely look similar to the guidance currently in place for the federal government and federal government contractors. Having a standard for best practices will have significant impact on both the insurance industry and tort class action suits for breaches.