Retailers Could Soon Be Liable For Hacking Damages In California

SPNLimg3212014
What's Next In Payments®
5:31 AM EDT April 7th, 2014

A bill is making its way through the California state legislature that would make companies like Target liable for damages after successful cyber-attacks against their system expose customer data.  Currently banks and credit card companies are on the hook for customer financial losses as a result of hacking, and the new measure would shift that responsibility to the retailer.

“Financial institutions should not be taking the heat for a data breach that occurs at a retailer,” said Assemblyman Roger Dickinson (D-Sacramento), a bill co-author along with Assemblyman Bob Wieckowksi (D-Fremont), reports the L.A. Times.

The bill also limits the type of information retailers can gather and retain.

The legislation has the support of consumer and privacy advocates, though critics of the measure say it is too sweeping and would be financially disruptive for retailers.

“What’s Hot” is aggregated content. PYMNTS.com claims no responsibility for the accuracy of the content published by the original source.

Topics:
Comments
  • Douglas J. Mack

    Correct me if I’m wrong, but doesn’t merchant liability already exist under CPP? I am not familiar with to what extent (eg. just fraud, card replacement, etc.). Further, doesn’t the move to EMV also address this concern?

  • http://www.merchantservicesbroker.net Steve Jarrett

    Standby… Ca legislature getting involved with merchant credit card processing. This cannot be good!!

Also by This Author
What's Hot
News
Mobile Payments Fuel Starbucks Growth
Merchant Innovation
ATM Networks Join Forces Against Fraud
News
Amazon Stock Tumbles on Losses
Merchant Innovation
MoneyGram Beefs Up Exec Ranks
View All Articles ››
You May Also Like
Controversial
It’s Earnings Season: What We’ve Learned So Far
Alternative Financial Services
The FI Payments’ Innovation Survival Kit
Alternative Financial Services
“Embrace Innovation” (Or Else Suffer The Consequences)
B2B Payments
Are SMBs Really Using New Payments Technologies?
View All Articles ››