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September 17, 2018

Will New Data Privacy Laws Lead to a Litigation “Surge?”

In a BNA op-ed, attorneys from Manatt, Phelps & Phillips say the “lawsuits are coming, rain or shine” from California’s new data privacy law.

Donna L. Wilson and Brandon P. Reilly say the California Consumer Privacy Act’s private right of action clause “cleared a major early-litigation hurdle for plaintiffs” since the law opens liability on businesses even if the plaintiffs are not harmed by a breach. Though the law still remains a “moving target” since business and consumer groups are advocating for changes “in all directions,” Wilson and Reilly say “businesses can take little comfort that plaintiff-driven privacy lawsuits will remain at current levels.”

Privacy-related lawsuits are also expected to increase in Europe since the passage of the General Data Protection Regulation. A London-based attorney told BankInfoSecurity that he thinks there is even “more chance of these actions succeeding” in Europe than in the U.S.

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