California Expands Its Security Breach Notification Law But Rejects Merchant Liability Standard


On October 13, 2007, Governor Schwarzenegger vetoed Assembly Bill 779, which would have regulated the handling of payment-related data and imposed greater liability on merchants for data security breaches.[1] The following day, Governor Schwarzenegger signed Assembly Bill 1289,

which expands California’s data breach notification law to cover medical information and health insurance information. This article summarizes these new developments.

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