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New Personal Information Requirements for Companies
Effective March 1, 2012, companies with personal information of Massachusetts residents must amend their existing contracts with vendors that handle such information to require the vendors'f compliance with the Massachusetts data security regulations. This requirement applies to the personal information of all Massachusetts residents, regardless of whether they are customers, employees or others with whom the company comes into contact and regardless of in which state the data is kept.
Massachusetts Data Security Regulations
The Massachusetts Office of Consumer Affairs and Business Regulation (OCABR) established what have become known as the Massachusetts data security regulations (201 CMR 17.00 et seq.) with the aim of reducing the risk of privacy breaches, including risks posed by vendor relationships. These regulations, which went into effect March 1, 2010, require any company, regardless of location, size or industry that possesses the personal information of a Massachusetts resident to adopt and implement a comprehensive written information security program (WISP). This WISP must include technical, physical, and administrative safeguards for the protection of personal information owned, licensed, received, stored, maintained, processed, or otherwise accessed by the company. As further discussed below, among the specific requirements of the Massachusetts regulations is the requirement to protect personal information handled by vendors.
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