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What is the Impact? This depends on whether the state is taking the “carrot or the stick” approach. Corporate liability is contingent upon the approach the state takes to address the issue. For example, California takes the stick approach requiring as of January 1, 2020, that consumers will be allowed to take legal action against a company that violates tenets of the law. The statute establishes a fairly broad definition of personal information that includes a whole raft of personal identifiers and inferences a company might be able to make about the consumer from that data. Ohio, on the other hand, takes the carrot approach by incentivizing companies that compile and transfer personal data to better protect that information by granting them safe harbor from litigation over breaches if certain conditions are met.
Why it Matters? For the recycling industry, personal data collection is most often mandated by laws designed to address materials theft and there is little evidence to indicate that policymakers’ new focus on data security has taken such mandates into account. Recyclers need to be closely following the policy discussions on data security in their states, particularly if the state and/or localities have mandatory electronic recordkeeping and/or reporting laws on the books. This is because despite the differing approaches seen in California and Ohio, for example, both state approaches indicate it is practically-certain that the personal information collected by recyclers under materials theft laws is going to be covered by almost any new data security law.
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