When most people think of Nevada, they immediately think of Las Vegas a/k/a Sin City. What else is there? Lots of desert. And of course the infamous slogan “What happens in Vegas, stays in Vegas.” Nevada has recently gotten a lot of press for something it decidedly isn’t known for – being the leading edge of technology.
Nevada legislators have passed law NRS 597.970, which requires businesses to encrypt all electronic transmissions of a customer’s personal information except when sending a fax. If the business with whom you wish to transmit customer’s information doesn’t accept or handle encrypted communications, you can’t send the data. Plain and simple. Or is it?
It’s hard to find a consensus of exactly what this law means. Sure, we get the encryption part. But the statute provides no definition of “electronic transmission.” Is it referring to sending an e-mail or shipping a CD? Both can be considered a form of electronic transmission. As we know, terms can be loosely defined and we guess that it will be left up to the Courts to decide.
There are a number of ways to encrypt data transmission, and we can probably count the number of businesses that consistently do this on one hand. The question now is how many companies doing business in Nevada are in violation of the law? Probably the majority of them.
The statute is a step in the right direction. But what do the remaining 49 states do now? Should each state develop individual laws regarding data protection or do we need federal legislation? For one national company having to comply with the individual laws of 50 states sounds like a nightmare as bad as coming out of Sin City on a losing night.
To read the text of Nevada law NRS 597.970, visit the web site at http://www.leg.state.nv.us/Nrs/NRS-597.html#NRS597Sec970
- John and Mike
(703) 359-0700
digitalsamurai@senseient.com
www.senseient.com