How does cybersecurity law apply to e-commerce?
In California, cybersecurity law applies to e-commerce through the California Electronic Information Security Act. This law requires businesses to take steps to protect customers’ information from unauthorized access, use, or disclosure. Businesses must also create policies for their employees to follow regarding the proper storage, transmission, and disposal of customer data. The Act requires businesses to create a risk assessment to determine the security risks associated with a customer’s data. Businesses must then develop a plan to mitigate these risks, which must be regularly revised to reflect any changes in data security technology. Businesses must also update their security plans whenever significant changes occur. The law also requires businesses to put in place reasonable measures to detect and respond to security incidents or unauthorized access to customer data. Businesses must also report any incidents they are aware of to the affected customers and must investigate any suspected data breach. Overall, the California Electronic Information Security Act provides the framework for how businesses must protect the data of their customers when engaging in e-commerce activities. The Act is a reminder to businesses in California to be proactive in protecting customer data and responding to potential security incidents.
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