Security Business

JUN 2019

Find news and information for the executive corporate security director, CSO, facility manager and assets protection manager on issues of policy, products, incidents, risk management, threat assessments and preparedness.

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46 Security Business / / June 2019 Your Business The Impact of Data Privacy Potential regulations may challenge small security businesses By Steve Lasky, Editorial Director While large enterprises like Google are facing fines for GDPR violations abroad, smaller U.S. companies are waiting for the hammer to fall, as California pushes forward state-level data privacy legislation. Passed last year, the California Consumer Privacy Act (CCPA) is still evolving, but it has created a larger conversation in the U.S., surrounding federal and state data privacy legislation. As the debate intensifies, small business owners – including security businesses – are starting to consider how these new regulations will affect their operations, and how they can stay compliant. To help clarify the coming challenges facing smaller U.S. businesses, I spoke with Monique Becenti, product and channel specialist at SiteLock. With more than five years experience in website hosting and cybersecurity, she oversees quality and accuracy for the SiteLock Support department. Here’s what she had to say: What are the challenges for businesses when laws like GDPR and CCPA come into effect? Becenti: The cost to comply with CCPA and GDPR standards can be very expensive, especially as the need for data management technology tools and legal consulting for data privacy management increases. With an estimated cost of $100,000 to implement the required standards, most small businesses are faced with limited budgets and resources to fully execute on all necessary requirements. What are the benefits and the drawbacks of California leading the charge on U.S. data privacy and security legislation? Being the largest and most populous state in the country, California has a strong influence over other states; therefore, as California leads the charge when it comes to business regulations and consumer legislation, it will likely influence other states and push them towards passing their own privacy legislation. Additionally, any businesses with customers in California – even if the business is not based in the state – needs to adhere to the state’s laws. Though data privacy laws highly benefit the consumer, that does not mean there are not drawbacks for small business owners; in fact, with that estimated expense of $100,000, the cost to comply with data privacy regulations could outweigh the benefit. Another drawback is that heavy fees and the large expense to implement the appropriate resources might convince small businesses to start pulling their business out of California completely. We saw this happen in Europe when GDPR was implemented, and this could very well hurt the economy in California and other states if they followed suit. What are the issues associated with a patchwork of state data privacy laws vs. a country-wide federal law? Having a patchwork of data privacy laws within the U.S. vs. a federal law would make it challenging for companies to do business – since they would need to be compliant with different privacy and security regulations across various states. In the event that more states follow California’s fight to protect data privacy and security, a change will need to be implemented on a federal level to avoid confusion and inconsistencies across state-level regulations.

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