Nebraska Enhances Consumer Protection Law

Nebraska strengthened its consumer protection law in response to a highly publicized 2017 data security breach involving a nationwide credit reporting agency.  The Nebraska Senate voted unanimously in favor of the measure, which was signed into law by the Governor on February 28, 2018.

The new law prohibits consumer reporting agencies from charging a fee to consumers for placing, temporarily lifting, or removing a security restriction or “freeze” in their credit report following a data security breach.

It also adds protections for consumers’ personal information.  Any individual or entity that owns, licenses, or maintains computerized data that includes personal information about Nebraska residents must implement and maintain reasonable security procedures to protect it.  Third-party service providers that receive computerized data from such individuals or commercial entities are also required to have contracts in place to ensure the information is adequately safeguarded.

This new section of the existing consumer protection law does not provide for a separate, private cause of action if a violation occurs.  Rather, the state’s Attorney General may pursue enforcement for such a violation, including civil penalties, and treat it as a violation of the state’s Consumer Protection Act.

A link to the bill’s language is available here.