New Data Privacy Laws Set For Firms

A Nevada law that took effect this month requires all businesses there to encrypt personally-identifiable customer data, including names and credit-card numbers, that are transmitted electronically. Nevada is the first of several states adopting new laws that will force businesses -- from hair stylists to hospitals -- to revamp the way they protect customer data. Starting in January, Massachusetts will require businesses that collect information about that state's residents to encrypt sensitive data stored on laptop computers and other portable devices. Michigan and Washington state are considering similar regulations. While just a few states have adopted such measures so far, the new patchwork of regulations is something many businesses will have to navigate, since the laws apply to out-of-state companies with operations or customers in those states.