The Cyber and Data Privacy landscape continues to evolve and create more exposure and liability to U.S. businesses. 

Claims have been made against retailers for violations of privacy laws associated with the Song-Beverly Act in California.  In addition, Massachusetts courts have followed suit under a similar law pursuant to which collecting zip codes during a credit card transaction has been found to violate state law.  That being said, a claimant must be be able to show out of pocket damages and/or ID Theft in order to recover.  While plaintiff attorneys will have difficulty proving these damages, they will still file actions against retailers that have customers in California and/or Mass, In-store or Online. 

There are several insurance carriers out there that will altogether and specifically exclude such claims from coverage and several that utilize other exclusionary language to avoid paying these types of claims.  If you are selling on line or at retail establishments in these states, or other states which have similar statutes, it is important that you check your Cyber/Media coverage.