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Do you do business in California? Or are your customers located there? Or do you even have a B2B relationship with a California company?

If so California Senate bill 1386 affects you. The law states that if you think private information may have become available to the wrong people (such as hackers), you must notify each and every customer that lives in California. That means if you do business with a business located in California, you must notify customers in addition to your business partner. The escape clause in this is if any and all customer data is stored in an encrypted database or file. By law this protects you from having to disclose a breach of security to possibly thousands of people. Customers knowing you didn't secure their private information can result in lost revenue and a lack of confidence in future dealings.

 

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