How the Lack of U.S. Privacy Laws Is Putting Your Data at Risk
The number of data breach lawsuits has increased markedly nationwide, as hackers are gaining access to information that businesses fail to safeguard. The data breach litigation attorneys at Federman & Sherwood can file a lawsuit on your behalf if you have been the victim of a data breach.
One of the problems is an inconsistent regulatory system to provide guidance to businesses. While the lack of a federal law does not excuse a company’s negligence in protecting your data, it does place your sensitive information increasingly at risk. One unified and consistent federal law can give businesses concrete standards that they need to follow.
Schedule a free initial consultation with the national data breach law firm of Federman & Sherwood to discuss your case. We know how to hold businesses accountable when they have failed to do their basic job of protecting your data.
There Is No Federal Data Breach Law to Protect You
There is no single Federal data breach law in the US for businesses. Although businesses have a legal obligation to protect your personal data, it does not come from any one overarching federal law. Unlike the European Union, which has its own data privacy law, there is nothing similar that exists on the federal level. Data privacy obligations may stem from certain laws that apply to your specific situation, such as the Gramm Leach Bliley Act (governing certain financial relationships). These obligations may also come from common law principles, such as negligence and specific state laws. However, the lack of an overarching federal law may contribute to an environment where your personal data is increasingly at risk.
A nationwide business must follow the laws of each of the states in which they operate. States are increasingly passing their own data privacy law in the absence of a federal framework. Currently, there are twenty states that have passed data privacy laws, and many other states have proposed similar legislation. However, there is no movement for a data privacy law at the federal level.
These laws are not always consistent with each other, and some may be stricter than others. While these laws may not be in conflict with each other, there may be material differences in each individual state law. A nationwide company would likely survey the laws in each state, but their compliance program may not be as robust as it should be because of the patchwork of laws. Companies may be attempting to use due care in protecting your data, but they do not always know the right measures to take.
Companies May Use a Scattershot Approach to Data Protection
The problem with the lack of a comprehensive federal law is that companies may use a piecemeal approach towards protecting your data. One federal law could allow a business to use a unified and holistic approach towards data protection. In the meantime, businesses are expending additional resources trying to follow the law in each state, and they are often not doing a good job of it. Even if businesses are investing the appropriate amount of money in data privacy compliance, they are not able to do it intelligently with so many different overlapping laws to follow. A strict federal law could even take precedence over less stringent laws in the individual state under the Preemption Doctrine of the Supremacy Clause of the United States Constitution.
This is not to say that there is no federal enforcement of data privacy, but the problem is that it looks backward instead of forward. Federal and state agencies may punish companies that have not used best practices in data privacy. However, the lack of one unified law means that there can be a rather vague standard, and companies may not be able to effectively prepare beforehand.
Nonetheless, the lack of a unified federal law, while it makes things more difficult for companies, does not excuse their own lack of care. Companies still must comply with numerous obligations, but they often do not make the necessary investment. Even more so, they do not follow their own procedures and end up compromising your personal data, causing you significant damages.
If you have been victimized by a data breach, you may be able to file a lawsuit against the company that failed to safeguard it. Consumers are increasingly holding these companies responsible in both individual and class action lawsuits. You could be entitled to substantial financial compensation for the harm that you have suffered.
Contact a National Data Breach Law Firm Today
Reach out to the national data breach attorneys at Federman & Sherwood to learn whether you may be eligible for financial compensation if your sensitive information has been compromised. You can visit our website, or you can call us today at (800) 237-1277. We have offices in Oklahoma and Texas, and we maintain a 50-state practice, helping clients nationwide.