Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Could Environmental Law Help Address Data Breaches?

Author: Scarinci Hollenbeck, LLC

Date: March 12, 2014

Key Contacts

Back

Data breaches are a growing threat to U.S. businesses. In the wake of Target’s high-profile data theft, which impacted more than 110 million consumers, and the more recent theft of consumer data from Neiman Marcus who disclosed that hackers invaded its systems for several months in a breach that involved 1.1 million credit and debit cards, security experts, federal lawmakers, and business leaders are all working to determine how best to protect sensitive information from falling into the wrong hands.

At a recent privacy symposium hosted by the University of Maine School of Law, Professor Dennis Hirsch of Capital University Law School proposed a novel approach to data protection. His source of inspiration — oil spills.

In his forthcoming paper, The Glass House Effect: Big Data, Oil Spills and the Need for Clean Data Technology, Hirsh takes the oft quoted analogy “’big data’ is the new oil” and extends it to spill prevention and cleanup. “Data spills occur with the regularity of oil spills. The victim of identity theft, bogged down in unwanted credit cards and bills, is just as trapped and unable to fly as the bird caught in the oil slick, its wings coated with a glossy substance from which it struggles to free itself,” he writes.

Hirsh further argues that environmental law can provide strategies that allow businesses to take advantage of big data’s many benefits, while reducing its negative impacts. He specifically cites the Clean Water Act and Oil Pollution Act as examples.

For instance, Hirsch notes that victims of data breaches are often unable to recover the full extent of their damages because they must demonstrate a “concrete and particular harm” that is “actual or imminent.” Accordingly, damages related to emotional distress and the risk of future damages are generally not allowed. As Congress expanded the Oil Pollution Act to allow for greater recovery for oil spill victims, Hirsh suggests that lawmakers should pass federal legislation that allows for the recovery of noneconomic damages created by data breaches.

In addition, Hirsh calls for legislation that authorizes a federal agency to clean up after data spills (i.e., investigating the root causes, determining the severity of the breach, and providing credit monitoring and identity theft recovery services to the public). The federal government could then recoup its expenses from the responsible party.

Finally, Hirsh notes that increasing liability for data breaches will only accomplish so much, just as it does in the oil industry. Akin to the push for viable sources of “clean energy,” Hirsh calls for the prevention of data breaches through new, “clean data” technologies and privacy-protective business models.

Hirsh acknowledges that his policy proposals are “intended (to be) provocative suggestions (rather) than full-fledged proposals . . . to spark creative thinking about solutions.” However, out-of-the box thinking may be just what is needed to solve this pressing and complex problem.

If you have any questions about the proposals discussed or would like to discuss your company’s data protection strategies, please contact me, Cyber Jurist. Fernando Pinguelo, or the Scarinci Hollenbeck attorney with whom you work. To learn more about data privacy and security, visit eWhiteHouseWatch – Where Law, Technology & Politics Collide.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs post image

Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs

When a family member can no longer make important decisions for themself, the question is often not whether the family will step in, but whether they have the legal authority to do so. A spouse may manage household finances, or an adult child may arrange medical care and pay bills. Still, informal assistance does not […]

Author: Marc J. Comer

Link to post with title - "Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs"
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments post image

New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments

New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]

Author: Wendy Rubinstein Quiroga

Link to post with title - "New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments"
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy post image

“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy

A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]

Author: Sean M. Pena

Link to post with title - "“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy"
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders post image

Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders

Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]

Author: Nicholas Wall

Link to post with title - "Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders"
Navigating Disputes: Hire a Partnership Dispute Lawyer post image

Navigating Disputes: Hire a Partnership Dispute Lawyer

A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]

Author: Jay McDaniel

Link to post with title - "Navigating Disputes: Hire a Partnership Dispute Lawyer"
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know post image

Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know

When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]

Author: John D. Giampolo

Link to post with title - "Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
“If you would like to submit a file, please email it directly to info@sh-law.com.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!