California Proposes New Liability Regime for Companies That Deal in Credit Reports

California Proposes New Liability Regime for Companies That Deal in Credit Reports

May 07, 2018

Client Alert

Brownstein Client Alert, May 10, 2018

The California Legislature is considering enacting Assembly Bill 1859 (“AB 1859”), which would impose substantial new security obligations on consumer credit reporting agencies and companies that contract with such agencies. Under AB 1859, credit reporting agencies and their contractors would be required to expediently apply software updates to their systems, proactively identify and address vulnerabilities, and regularly test their systems. A credit reporting agency or contractor that fails to take these steps and subsequently suffers a data breach could be liable for civil penalties, damages and attorney’s fees.

To read the full alert, click the PDF above.

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