The Internet is a reflection of society and is used by ethical and unethical people. The potential for legal liability is increasing because of easy access to computer networks. Many customers are unaware of federal legislation. The duty to protect network perimeters, transmitted information, wireless devices, and information stored on systems connected to the Internet, could leave you open to liability.

Review the laws below to develop a basic understanding of your responsibility.

Federal

• General business, Consumer Privacy - Gramm-Leach-Bliley Act, this law applies to anyone who interacts with consumer's financial or nonpublic personal information
• General business, Children Privacy - Children Online Privacy Act, this law applies to business marketing on the Internet to kids under age 13
• Legal Firms, Client Privacy - Gramm-Leach-Bliley Act, firms are also governed by state and federal legislation as well as a code of ethics, Cyber Insecurity Lawyers May Be Missing A Big Piece Of Gramm-Leach-Bliley
• Accounting Firms, Client Privacy - Sarbanes-Oxley, specifically applies to the companies that are registered with the Securities and Exchange Commission, and the companies that do business with them
• Medical Organizations, Patient Privacy - HIPAA Act, specifically applies to the medical industry

State

• California: SB 1386, Consumer Privacy - California: SB 1386, signed into law this year (2003), starting July 1, requires a business or state agency to disclose any security breach to customers if their data has been acquired by an unauthorized person