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Cybersecurity Liability and Small Businesses: A Study of One State’s Approach
Loren F Selznick, Carolyn LaMacchia

Last modified: 2018-09-20

Abstract


Businesses often collect and store sensitive personal information in order to perform necessary functions like satisfying customer orders.  When cybersecurity breaches cause this information falls into the wrong hands, businesses face liability.  Although nationwide cybersecurity breaches are the ones that make the news, these events affect large and small businesses alike.  Ohio Senate Bill 220 creates safe harbor for business that comply with certain cybersecurity standards. Critics of the law stated that emerging state-by-state standards will make it difficult for federal courts to address liability for nationwide cybersecurity breaches.  This article addresses whether Ohio Senate Bill 220 was needed for intrastate events and whether it contains sufficient protection from potentially crippling liability for small businesses.

Keywords


cyber security, liability, law, technology