As you might have heard already, Massachusetts amended their data protection law again. In addition to extending the deadline once more, they’ve added language to factor in the size of the company and the resources available to it. From reports, it appears that the small business community lobbied hard to have the language modified to make compliance with the statute easier.  Specifically language was added to require a company to implement a comprehensive information security program that contains safeguards that are appropriate “to (a) the size, scope and type of business of the person obligated to safeguard the personal information under such comprehensive information security program; (b) the amount of resources available to such person; (c) the amount of stored data; and (d) the need for security and confidentiality of both consumer and employee information.”
Some companies will invariably look at the words “size, scope and type” to infer that they can get away with limiting how comprehensive their security program is.  But the truth is that technology is rapidly making it quite easy to implement controls and encryption to protect data, and to ensure regular monitoring of access attempts.  And the technology is becoming more and more affordable, so that even the smallest company can afford to implement it.  Products like Zecurion’s already incorporate ease of implementation and administration as well as a low price point. So by the time the implementation deadline of March 1, 2010 rolls around, companies will have a hard time justifying to the state that they were incapable of implementing rigorous controls over Massachusetts residents’ data regardless of their size.