Data breaches are a growing concern for businesses and residents in Arkansas. When personal information is exposed without permission, understanding who is responsible for the breach is essential. The legal consequences for those liable can be serious, but what exactly does Arkansas law say about this?
This article explains who is really liable when a data breach happens, focusing on rules that protect Arkansas residents.
What Is a Data Breach?
A data breach occurs when personal or sensitive information maintained by a business or organization is accessed by someone without permission. This may happen through hacking, theft, or even accidental exposure. In Arkansas, this can include information such as names combined with Social Security numbers, health records, or financial details.
Arkansas Personal Information Protection Act (PIPA)
Arkansas law requires that any person, business, or state agency that collects or holds computerized personal information must take reasonable steps to keep that information safe. If they experience a data breach, they must notify the affected individuals quickly, but no later than 45 days after finding out.
The law also sets rules about notifying the Arkansas Attorney General if the breach affects more than 1,000 people. This helps the state track serious breaches and assists in protecting consumers.
Who Is Liable?
In Arkansas, liability for a data breach falls primarily on the entity that owns or licenses the data system where personal information was compromised. This means:
- Businesses or state agencies that hold personal data are responsible for keeping it secure.
- If they discover that unauthorized access occurred, they must notify affected residents without unreasonable delay.
- If another business or person maintains the data but does not own it, they must immediately inform the owner once a breach is found.
Legal Responsibilities and Penalties
Arkansas law demands timely disclosure to affected individuals, allowing them to take steps to reduce potential harm, such as identity theft. The key responsibilities include:
- Investigating the breach promptly.
- Notifying individuals if their data has been or is likely to be misused.
- Informing the Arkansas Attorney General within 45 days for large-scale breaches.
Failing to meet these legal responsibilities can result in:
- Civil penalties are enforced by the Attorney General.
- Lawsuits from consumers.
- Loss of trust and reputational damage.
- Costs related to investigations, customer notifications, and possible credit monitoring services.
What Businesses in Arkansas Should Do
Businesses handling personal information should:
- Use strong security systems to protect data from breaches.
- Train employees to recognize risks such as phishing scams.
- Have a clear plan for responding to data breaches.
- Notify affected individuals and authorities promptly if a breach occurs.
- Consider cyber liability insurance to cover costs related to data breaches.
Bottom Line
Data breaches are a serious legal issue in Arkansas. The law clearly assigns liability to those who collect and maintain personal information, requiring them to act quickly in case of a breach. Failure to comply can result in penalties and loss of consumer trust. Businesses and organizations must understand these responsibilities to protect their customers and themselves.
