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Proposed California Law Would Make Retailers Responsible for Data Protection

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An article by K.C. Jones in InformationWeek on June 28th reports that the California Senate Judiciary Committee approved a bill that would shift the responsibility of notifying consumers about data breaches from financial institutions to retailers. Under the proposed law, retailers doing business in the state would have to notify consumers when and where their information was lost. The bill would also require retailers to cover the expense involved in notifying consumers and the costs of reissuing any cards. If the bill becomes law, it could serve as a model for similar legislation on the federal level.

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