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Question 1 of 30
1. Question
A data analytics firm operating in South Carolina, “Carolina Insights,” discovers a security incident on October 15th, 2023, where a server containing encrypted customer social security numbers and birth dates was accessed without authorization. The encryption key was not compromised, and the firm’s internal investigation, completed on November 10th, 2023, confirms that the data remains unreadable and uncompromised due to the robust encryption. However, a separate, unencrypted database containing only customer names and email addresses was also accessed on October 12th, 2023, and this breach was confirmed on November 5th, 2023. Under the South Carolina Personal Information Security Breach Notification Act, what is the latest date Carolina Insights must notify affected South Carolina residents regarding the unencrypted data breach?
Correct
The South Carolina Personal Information Security Breach Notification Act, codified in S.C. Code Ann. § 39-1-90, outlines the obligations of entities that own or license computerized personal information concerning South Carolina residents. The core of the law mandates notification when a breach of security occurs, meaning unauthorized acquisition of computerized personal information that compromises the security, confidentiality, or integrity of the personal information. The act specifies that notification must be made without unreasonable delay, but no later than 60 days after discovery of the breach. This timeframe is a critical component of the law’s practical application. The act also defines “personal information” broadly to include names combined with social security numbers, driver’s license numbers, or financial account information. The notification requirements are triggered by the risk of harm to consumers, not necessarily actual harm. The law provides exceptions, such as when the information is encrypted or rendered unreadable. The 60-day window is a hard deadline for most circumstances, emphasizing promptness in protecting affected individuals.
Incorrect
The South Carolina Personal Information Security Breach Notification Act, codified in S.C. Code Ann. § 39-1-90, outlines the obligations of entities that own or license computerized personal information concerning South Carolina residents. The core of the law mandates notification when a breach of security occurs, meaning unauthorized acquisition of computerized personal information that compromises the security, confidentiality, or integrity of the personal information. The act specifies that notification must be made without unreasonable delay, but no later than 60 days after discovery of the breach. This timeframe is a critical component of the law’s practical application. The act also defines “personal information” broadly to include names combined with social security numbers, driver’s license numbers, or financial account information. The notification requirements are triggered by the risk of harm to consumers, not necessarily actual harm. The law provides exceptions, such as when the information is encrypted or rendered unreadable. The 60-day window is a hard deadline for most circumstances, emphasizing promptness in protecting affected individuals.
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Question 2 of 30
2. Question
A South Carolina-based financial services firm, “Carolina Capital Management,” experiences a cybersecurity incident resulting in unauthorized access to its client database. The compromised data includes client names, addresses, and account numbers. Upon discovering the breach, Carolina Capital Management immediately initiates an internal investigation to ascertain the full scope of the incident and the specific data elements affected. Law enforcement has been notified and is cooperating with the firm’s forensic analysis. Considering the provisions of the South Carolina Personal Information Protection Act (SC PIPA), which of the following best describes the firm’s obligation regarding notification to affected individuals in this scenario?
Correct
The South Carolina Personal Information Protection Act (SC PIPA) requires businesses to implement and maintain reasonable security procedures and practices appropriate to the nature of the information to protect personal information. When a data breach occurs, SC PIPA mandates specific notification requirements. The act defines personal information as a South Carolina resident’s first name and last name or the first initial and last name in combination with any one or more of the following data elements, if the data element is not otherwise publicly available: social security number, driver’s license number, state identification card number, passport number, employer identification number, or checking or other financial account number, or credit card or debit card number. The law also specifies that a covered entity must provide notification to affected individuals in the most expedient time possible and without unreasonable delay, consistent with the legitimate needs of law enforcement or any measures necessary to determine the scope of the breach and restore the integrity of the system. The notification must include specific content, such as a description of the incident, the types of information compromised, and steps individuals can take to protect themselves. While the law sets a general standard of “reasonable security,” it does not prescribe a specific timeframe in days for notification, leaving room for interpretation based on the circumstances and the need to investigate. Therefore, the most accurate interpretation of the law’s intent regarding the timing of notification, absent a specific numerical deadline, is to act expediently and without unreasonable delay, prioritizing the integrity of the system and law enforcement needs if applicable.
Incorrect
The South Carolina Personal Information Protection Act (SC PIPA) requires businesses to implement and maintain reasonable security procedures and practices appropriate to the nature of the information to protect personal information. When a data breach occurs, SC PIPA mandates specific notification requirements. The act defines personal information as a South Carolina resident’s first name and last name or the first initial and last name in combination with any one or more of the following data elements, if the data element is not otherwise publicly available: social security number, driver’s license number, state identification card number, passport number, employer identification number, or checking or other financial account number, or credit card or debit card number. The law also specifies that a covered entity must provide notification to affected individuals in the most expedient time possible and without unreasonable delay, consistent with the legitimate needs of law enforcement or any measures necessary to determine the scope of the breach and restore the integrity of the system. The notification must include specific content, such as a description of the incident, the types of information compromised, and steps individuals can take to protect themselves. While the law sets a general standard of “reasonable security,” it does not prescribe a specific timeframe in days for notification, leaving room for interpretation based on the circumstances and the need to investigate. Therefore, the most accurate interpretation of the law’s intent regarding the timing of notification, absent a specific numerical deadline, is to act expediently and without unreasonable delay, prioritizing the integrity of the system and law enforcement needs if applicable.
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Question 3 of 30
3. Question
Consider a South Carolina-based healthcare provider, “Palmetto Health Partners,” that experiences a cyber incident. During the incident, an unauthorized entity gained access to a server containing patient records. The records included names, dates of birth, and medical treatment summaries for over 500 South Carolina residents. Crucially, the patient records were encrypted using industry-standard AES-256 encryption, and the encryption keys were stored separately and securely on a different, isolated server that was not accessed during the incident. Based on the South Carolina Personal Information Protection Act, what is the most accurate determination regarding the provider’s notification obligations concerning this incident?
Correct
The South Carolina Personal Information Protection Act (SC PIPA), specifically Section 1-7-740, addresses the notification requirements for a breach of personal information. This section mandates that a breach of security of personal information occurs when unencrypted personal information is acquired by an unauthorized person. The law requires notification to affected individuals and, in certain circumstances, to the Attorney General of South Carolina. The law defines “personal information” broadly to include any information that can be used to identify an individual, including but not limited to name, address, and Social Security number, when linked with data that is not publicly available. The trigger for notification is the unauthorized acquisition or access of personal information. There is no specific monetary threshold for the amount of data compromised that dictates notification; rather, the nature of the data and the unauthorized acquisition are the key factors. The statute does not require a specific number of affected individuals to trigger notification, only that personal information was breached. The law focuses on the unauthorized acquisition of unencrypted data. If the data is encrypted and the encryption key is also compromised, it is considered a breach. However, if only the encrypted data is acquired and the key remains secure, it is generally not considered a reportable breach under the statute. The question revolves around the interpretation of “breach of security of personal information” as defined in South Carolina law.
Incorrect
The South Carolina Personal Information Protection Act (SC PIPA), specifically Section 1-7-740, addresses the notification requirements for a breach of personal information. This section mandates that a breach of security of personal information occurs when unencrypted personal information is acquired by an unauthorized person. The law requires notification to affected individuals and, in certain circumstances, to the Attorney General of South Carolina. The law defines “personal information” broadly to include any information that can be used to identify an individual, including but not limited to name, address, and Social Security number, when linked with data that is not publicly available. The trigger for notification is the unauthorized acquisition or access of personal information. There is no specific monetary threshold for the amount of data compromised that dictates notification; rather, the nature of the data and the unauthorized acquisition are the key factors. The statute does not require a specific number of affected individuals to trigger notification, only that personal information was breached. The law focuses on the unauthorized acquisition of unencrypted data. If the data is encrypted and the encryption key is also compromised, it is considered a breach. However, if only the encrypted data is acquired and the key remains secure, it is generally not considered a reportable breach under the statute. The question revolves around the interpretation of “breach of security of personal information” as defined in South Carolina law.
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Question 4 of 30
4. Question
Consider a South Carolina-based e-commerce company, “Carolina Crafts,” that primarily sells handmade artisanal goods online. Carolina Crafts collects customer names, email addresses, physical mailing addresses, and payment card information. They have a small IT department and operate on a limited budget. If Carolina Crafts were to experience a data breach where unencrypted customer payment card information was exfiltrated, what would be the most critical factor in determining whether they met the “reasonable security procedures and practices” standard under the South Carolina Personal Information Protection Act?
Correct
The South Carolina Personal Information Protection Act (SC PIPA), codified in Section 1-1-1500 et seq. of the South Carolina Code of Laws, outlines specific requirements for businesses that collect, maintain, and dispose of personal information. A key aspect of this law, and privacy regulations in general, is the concept of “reasonable security procedures and practices.” This phrase signifies a standard of care that a business must exercise to protect sensitive personal data from unauthorized access, use, disclosure, alteration, or destruction. The determination of what constitutes “reasonable” is fact-specific and depends on various factors, including the nature and volume of the personal information collected, the sensitivity of that information, the size and resources of the business, the technological capabilities available, and the cost of implementing security measures. For instance, a large financial institution handling vast amounts of highly sensitive financial data would be expected to implement more robust and costly security measures than a small local retailer collecting only customer names and email addresses for marketing purposes. The law emphasizes a proactive approach, requiring businesses to assess their risks and implement appropriate safeguards. This includes measures such as encryption, access controls, regular security audits, employee training, and secure data disposal. The objective is to prevent data breaches and mitigate the harm that could result from such incidents. The statute does not mandate specific technologies but rather a commitment to a continuous process of evaluating and improving security. The core principle is that the security measures must be appropriate to the risks presented by the data and the business’s operations.
Incorrect
The South Carolina Personal Information Protection Act (SC PIPA), codified in Section 1-1-1500 et seq. of the South Carolina Code of Laws, outlines specific requirements for businesses that collect, maintain, and dispose of personal information. A key aspect of this law, and privacy regulations in general, is the concept of “reasonable security procedures and practices.” This phrase signifies a standard of care that a business must exercise to protect sensitive personal data from unauthorized access, use, disclosure, alteration, or destruction. The determination of what constitutes “reasonable” is fact-specific and depends on various factors, including the nature and volume of the personal information collected, the sensitivity of that information, the size and resources of the business, the technological capabilities available, and the cost of implementing security measures. For instance, a large financial institution handling vast amounts of highly sensitive financial data would be expected to implement more robust and costly security measures than a small local retailer collecting only customer names and email addresses for marketing purposes. The law emphasizes a proactive approach, requiring businesses to assess their risks and implement appropriate safeguards. This includes measures such as encryption, access controls, regular security audits, employee training, and secure data disposal. The objective is to prevent data breaches and mitigate the harm that could result from such incidents. The statute does not mandate specific technologies but rather a commitment to a continuous process of evaluating and improving security. The core principle is that the security measures must be appropriate to the risks presented by the data and the business’s operations.
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Question 5 of 30
5. Question
A technology firm based in California, “Innovate Solutions Inc.,” provides cloud-based customer relationship management (CRM) software. Innovate Solutions Inc. has entered into service agreements with over 50 small to medium-sized businesses located exclusively within South Carolina. These South Carolina businesses utilize the CRM software to manage their customer data, which includes names, addresses, email addresses, and purchase histories of their respective customers, who are also South Carolina residents. Innovate Solutions Inc. does not directly solicit or sell products to individual South Carolina residents; its business is solely providing the software service to other businesses. If a data breach occurs within Innovate Solutions Inc.’s systems, compromising the sensitive personal information of 1,500 South Carolina residents managed through its CRM software, which of the following most accurately describes the applicability of South Carolina’s data protection laws to Innovate Solutions Inc.?
Correct
The South Carolina Personal Information Protection Act (SCPIPA) outlines specific requirements for businesses that own or license personal information of South Carolina residents. While SCPIPA does not mandate a specific calculation for determining the scope of its application based on a fixed monetary threshold for data breaches or the number of affected residents in the same way some other state laws do, its applicability is tied to the business’s engagement with South Carolina residents and the nature of the data handled. The core of SCPIPA’s applicability hinges on whether a business “conducts business in South Carolina” and “collects and maintains, or licenses to collect and maintain, sensitive personal information of a resident of South Carolina.” There is no direct numerical calculation to determine applicability under SCPIPA, unlike laws that might trigger based on the number of residents affected by a breach or a revenue threshold. The law focuses on the qualitative aspects of business operations and data handling concerning South Carolina residents. Therefore, a business operating in South Carolina that handles sensitive personal information of its residents falls under the purview of SCPIPA, regardless of specific breach numbers or a numerical threshold for data volume. The question tests the understanding that SCPIPA’s trigger is based on business activity and data type, not a quantitative breach metric.
Incorrect
The South Carolina Personal Information Protection Act (SCPIPA) outlines specific requirements for businesses that own or license personal information of South Carolina residents. While SCPIPA does not mandate a specific calculation for determining the scope of its application based on a fixed monetary threshold for data breaches or the number of affected residents in the same way some other state laws do, its applicability is tied to the business’s engagement with South Carolina residents and the nature of the data handled. The core of SCPIPA’s applicability hinges on whether a business “conducts business in South Carolina” and “collects and maintains, or licenses to collect and maintain, sensitive personal information of a resident of South Carolina.” There is no direct numerical calculation to determine applicability under SCPIPA, unlike laws that might trigger based on the number of residents affected by a breach or a revenue threshold. The law focuses on the qualitative aspects of business operations and data handling concerning South Carolina residents. Therefore, a business operating in South Carolina that handles sensitive personal information of its residents falls under the purview of SCPIPA, regardless of specific breach numbers or a numerical threshold for data volume. The question tests the understanding that SCPIPA’s trigger is based on business activity and data type, not a quantitative breach metric.
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Question 6 of 30
6. Question
A South Carolina-based e-commerce company, “Coastal Crafts,” experiences a cybersecurity incident that compromises the personal information of its customers, including names, addresses, and payment card details. The breach is discovered on October 1st. The company’s internal IT team immediately begins an investigation to ascertain the full scope of the compromise. Due to the complexity of the intrusion and the need to coordinate with external forensic experts, the company does not issue notification to affected individuals until November 30th. Considering the principles of South Carolina’s data breach notification law, which of the following most accurately reflects the potential legal implication of Coastal Crafts’ notification timeline?
Correct
South Carolina’s law regarding data breaches, specifically Section 1-30-10 of the South Carolina Code of Laws, mandates timely notification to affected individuals and relevant authorities. While the law does not prescribe a specific number of days for notification in all circumstances, it requires notification without unreasonable delay. The key is the concept of “unreasonable delay.” Factors that would contribute to an unreasonable delay include a lack of a documented incident response plan, insufficient staffing to investigate the breach, or a deliberate decision to withhold notification pending further investigation beyond what is necessary to determine the scope and impact of the breach. A delay of sixty days, for example, would likely be considered unreasonable unless there are exceptional circumstances that justify such a prolonged period, such as a complex, multi-jurisdictional investigation requiring extensive coordination. The law emphasizes transparency and the protection of consumer rights by ensuring individuals are informed promptly about potential risks to their personal information. The absence of a specific statutory deadline does not absolve a business of its responsibility to act expeditiously. The focus remains on the reasonableness of the delay in context.
Incorrect
South Carolina’s law regarding data breaches, specifically Section 1-30-10 of the South Carolina Code of Laws, mandates timely notification to affected individuals and relevant authorities. While the law does not prescribe a specific number of days for notification in all circumstances, it requires notification without unreasonable delay. The key is the concept of “unreasonable delay.” Factors that would contribute to an unreasonable delay include a lack of a documented incident response plan, insufficient staffing to investigate the breach, or a deliberate decision to withhold notification pending further investigation beyond what is necessary to determine the scope and impact of the breach. A delay of sixty days, for example, would likely be considered unreasonable unless there are exceptional circumstances that justify such a prolonged period, such as a complex, multi-jurisdictional investigation requiring extensive coordination. The law emphasizes transparency and the protection of consumer rights by ensuring individuals are informed promptly about potential risks to their personal information. The absence of a specific statutory deadline does not absolve a business of its responsibility to act expeditiously. The focus remains on the reasonableness of the delay in context.
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Question 7 of 30
7. Question
A South Carolina-based e-commerce company, “Coastal Curios,” collects customer names, addresses, and purchase histories. The company has a policy to securely destroy customer data only when it is no longer needed for ongoing business operations, such as processing returns or fulfilling warranty claims. This means that data for customers who have not made a purchase in five years, and for whom no outstanding obligations exist, would eventually be purged. Which of the following actions best aligns with the South Carolina Personal Information Protection Act’s requirements for data disposal?
Correct
The South Carolina Personal Information Protection Act (SCPIPA) establishes specific requirements for businesses that own or license personal information of South Carolina residents. A key aspect of this law pertains to the security of this information. SCPIPA mandates that businesses must implement and maintain reasonable security procedures and practices that are appropriate to the nature of the information to protect personal information from unauthorized acquisition. This includes taking reasonable steps to dispose of personal information when it is no longer needed. The law does not mandate a specific timeline for data destruction based on a numerical period like “90 days” or “180 days” for all types of personal information. Instead, it emphasizes the concept of “reasonable” disposal, which is context-dependent and relates to the purpose for which the information was collected and whether that purpose has been fulfilled. Therefore, a business that disposes of personal information only when it is no longer required for its business purposes, and does so securely, is adhering to the spirit and letter of SCPIPA. The law focuses on the reasonableness of the security and disposal practices, not on a rigid, universally applied time-based destruction schedule for all data. This approach allows businesses flexibility while ensuring a commitment to data minimization and security.
Incorrect
The South Carolina Personal Information Protection Act (SCPIPA) establishes specific requirements for businesses that own or license personal information of South Carolina residents. A key aspect of this law pertains to the security of this information. SCPIPA mandates that businesses must implement and maintain reasonable security procedures and practices that are appropriate to the nature of the information to protect personal information from unauthorized acquisition. This includes taking reasonable steps to dispose of personal information when it is no longer needed. The law does not mandate a specific timeline for data destruction based on a numerical period like “90 days” or “180 days” for all types of personal information. Instead, it emphasizes the concept of “reasonable” disposal, which is context-dependent and relates to the purpose for which the information was collected and whether that purpose has been fulfilled. Therefore, a business that disposes of personal information only when it is no longer required for its business purposes, and does so securely, is adhering to the spirit and letter of SCPIPA. The law focuses on the reasonableness of the security and disposal practices, not on a rigid, universally applied time-based destruction schedule for all data. This approach allows businesses flexibility while ensuring a commitment to data minimization and security.
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Question 8 of 30
8. Question
Consider a South Carolina-based retail company that collects extensive customer data for targeted advertising. The company’s data handling practices, while not explicitly prohibited by a singular South Carolina privacy statute, are alleged to be misleading to consumers regarding the extent of data sharing with third-party marketing firms. Which of the following legal avenues would most likely be pursued by a consumer seeking redress for these practices in South Carolina, given the current legislative environment?
Correct
South Carolina’s data privacy landscape, while evolving, does not currently possess a comprehensive, standalone data privacy law akin to California’s Consumer Privacy Act (CCPA) or the European Union’s General Data Protection Regulation (GDPR). Instead, privacy protections are often embedded within specific sectoral laws or general consumer protection statutes. For instance, the South Carolina Unfair Trade Practices Act (SC Code Ann. § 39-5-10 et seq.) can be invoked if deceptive practices related to data handling occur. Furthermore, specific industries, such as healthcare, are governed by federal laws like HIPAA, and financial institutions by GLBA. The question probes the understanding of the *absence* of a broad, general privacy statute in South Carolina and the reliance on existing, often sector-specific or general consumer protection frameworks. This requires an awareness that South Carolina has not enacted a law granting consumers broad rights to access, delete, or opt-out of the sale of their personal information in a manner consistent with more expansive state privacy regimes. The legal framework is more fragmented, addressing privacy concerns through various mechanisms rather than a single, overarching piece of legislation.
Incorrect
South Carolina’s data privacy landscape, while evolving, does not currently possess a comprehensive, standalone data privacy law akin to California’s Consumer Privacy Act (CCPA) or the European Union’s General Data Protection Regulation (GDPR). Instead, privacy protections are often embedded within specific sectoral laws or general consumer protection statutes. For instance, the South Carolina Unfair Trade Practices Act (SC Code Ann. § 39-5-10 et seq.) can be invoked if deceptive practices related to data handling occur. Furthermore, specific industries, such as healthcare, are governed by federal laws like HIPAA, and financial institutions by GLBA. The question probes the understanding of the *absence* of a broad, general privacy statute in South Carolina and the reliance on existing, often sector-specific or general consumer protection frameworks. This requires an awareness that South Carolina has not enacted a law granting consumers broad rights to access, delete, or opt-out of the sale of their personal information in a manner consistent with more expansive state privacy regimes. The legal framework is more fragmented, addressing privacy concerns through various mechanisms rather than a single, overarching piece of legislation.
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Question 9 of 30
9. Question
A financial services firm based in Georgia, which serves clients across the United States, discovers a cybersecurity incident that has exposed the unencrypted personal information of 1,500 South Carolina residents. The exposed data includes names, account numbers, and social security numbers. The firm’s internal investigation confirms the breach occurred on October 15th and was fully contained and understood by November 5th. The firm has a robust data breach response plan in place that it follows diligently. Considering the South Carolina Data Breach Notification Act of 2008, as amended, what is the latest date by which the firm must provide notification to the affected South Carolina residents, assuming no law enforcement impediment to notification?
Correct
South Carolina’s law regarding data breaches and notification requirements is primarily governed by the South Carolina Data Breach Notification Act of 2008, as amended. This act mandates that any entity conducting business in South Carolina that owns or licenses computerized data that includes personal information of South Carolina residents must notify affected individuals in the event of a breach of security. Personal information is defined broadly to include an individual’s first name or first initial and last name in combination with any one or more of the following: social security number, driver’s license number or state identification card number, account number, credit or debit card number, or any required security code, access code, or password that would permit access to an individual’s financial account. The notification must be made without unreasonable delay, and in no case later than 60 days after the discovery of the breach, unless law enforcement determines that notification would impede an investigation. The notification must include specific details about the breach, such as a description of the incident, the types of personal information involved, and steps individuals can take to protect themselves. If an entity maintains a breach notification policy and provides appropriate notification to affected individuals in conformity with that policy, it is considered to be in compliance with the law. If the breach affects more than 1,000 South Carolina residents, the entity must also notify the South Carolina Attorney General’s office. The law also allows for substitute notice if the cost of providing individual notice exceeds a certain threshold or if the entity lacks sufficient contact information for a significant portion of affected individuals, provided certain conditions are met, including posting notice on the entity’s website and notifying major statewide media.
Incorrect
South Carolina’s law regarding data breaches and notification requirements is primarily governed by the South Carolina Data Breach Notification Act of 2008, as amended. This act mandates that any entity conducting business in South Carolina that owns or licenses computerized data that includes personal information of South Carolina residents must notify affected individuals in the event of a breach of security. Personal information is defined broadly to include an individual’s first name or first initial and last name in combination with any one or more of the following: social security number, driver’s license number or state identification card number, account number, credit or debit card number, or any required security code, access code, or password that would permit access to an individual’s financial account. The notification must be made without unreasonable delay, and in no case later than 60 days after the discovery of the breach, unless law enforcement determines that notification would impede an investigation. The notification must include specific details about the breach, such as a description of the incident, the types of personal information involved, and steps individuals can take to protect themselves. If an entity maintains a breach notification policy and provides appropriate notification to affected individuals in conformity with that policy, it is considered to be in compliance with the law. If the breach affects more than 1,000 South Carolina residents, the entity must also notify the South Carolina Attorney General’s office. The law also allows for substitute notice if the cost of providing individual notice exceeds a certain threshold or if the entity lacks sufficient contact information for a significant portion of affected individuals, provided certain conditions are met, including posting notice on the entity’s website and notifying major statewide media.
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Question 10 of 30
10. Question
Consider the regulatory environment for personal data in South Carolina. Which of the following accurately characterizes the state’s current approach to data privacy, particularly concerning the rights of individuals over their collected personal information?
Correct
South Carolina’s data privacy landscape, while evolving, does not currently possess a comprehensive, standalone statutory framework akin to the California Consumer Privacy Act (CCPA) or the Virginia Consumer Data Protection Act (VCDPA). Instead, privacy protections are often derived from a patchwork of federal laws, common law principles, and specific state statutes addressing particular types of data or industries. For instance, South Carolina has statutes governing the privacy of health information, financial records, and student data, often with specific breach notification requirements. The question probes the understanding of this nuanced approach, distinguishing it from a singular, broad-reaching privacy law. The correct answer reflects the absence of a singular, overarching South Carolina data privacy statute that grants broad consumer rights concerning personal data collection, use, and deletion, which would be characteristic of a comprehensive privacy law like those found in other US states. The other options present scenarios that are either not currently codified in South Carolina law or misrepresent the existing regulatory environment by suggesting a broad, unified privacy act. Understanding the specific sectoral regulations and the absence of a general privacy law is key to grasping South Carolina’s current approach.
Incorrect
South Carolina’s data privacy landscape, while evolving, does not currently possess a comprehensive, standalone statutory framework akin to the California Consumer Privacy Act (CCPA) or the Virginia Consumer Data Protection Act (VCDPA). Instead, privacy protections are often derived from a patchwork of federal laws, common law principles, and specific state statutes addressing particular types of data or industries. For instance, South Carolina has statutes governing the privacy of health information, financial records, and student data, often with specific breach notification requirements. The question probes the understanding of this nuanced approach, distinguishing it from a singular, broad-reaching privacy law. The correct answer reflects the absence of a singular, overarching South Carolina data privacy statute that grants broad consumer rights concerning personal data collection, use, and deletion, which would be characteristic of a comprehensive privacy law like those found in other US states. The other options present scenarios that are either not currently codified in South Carolina law or misrepresent the existing regulatory environment by suggesting a broad, unified privacy act. Understanding the specific sectoral regulations and the absence of a general privacy law is key to grasping South Carolina’s current approach.
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Question 11 of 30
11. Question
A healthcare provider headquartered in Charleston, South Carolina, experienced a significant cybersecurity incident on January 15th, resulting in the unauthorized acquisition of computerized personal information belonging to over 5,000 South Carolina residents. Upon discovering the breach, the provider immediately initiated an internal investigation and subsequently notified the Federal Bureau of Investigation (FBI). The FBI requested that the provider postpone any public notification to South Carolina residents, as this could compromise a sensitive, ongoing investigation into a broader criminal enterprise responsible for the attack. The provider agreed to the delay. The FBI officially concluded its investigation on March 10th. The healthcare provider then proceeded to issue notifications to all affected South Carolina residents on March 25th. Under South Carolina’s data breach notification statutes, is the provider’s notification timeline compliant with state law?
Correct
South Carolina’s data breach notification law, codified in the South Carolina Code of Laws Section 39-9-10, outlines specific requirements for businesses that own or license unencrypted personal information of South Carolina residents. A breach is defined as unauthorized acquisition of computerized personal information. The law mandates that notification must be made without unreasonable delay and no later than 60 days after discovery of the breach, unless law enforcement determines that notification would impede an investigation. The notification must include a description of the incident, the types of personal information involved, and steps individuals can take to protect themselves. It also requires notification to the South Carolina Attorney General if more than 1,000 residents are affected. The core of the law focuses on timely and informative communication to affected individuals and relevant authorities when personal data is compromised. The scenario presented involves a cybersecurity incident impacting a South Carolina-based healthcare provider that stores patient data. The provider discovered the breach on January 15th and, after an initial assessment confirming compromised patient records, engaged with federal law enforcement. Federal authorities requested a delay in notification to avoid jeopardizing an ongoing investigation into a larger cybercrime ring. The provider complied with this request, and law enforcement concluded its active investigation on March 10th. The provider then issued notifications on March 25th. This timeline falls within the permissible parameters of the South Carolina law. The discovery was January 15th. The 60-day clock would normally expire on March 16th. However, the law allows for a delay if requested by law enforcement. Since law enforcement’s investigation concluded on March 10th, the provider had until 60 days from the original discovery date, or until March 16th, to notify, unless law enforcement requested a further extension. The prompt states law enforcement requested a delay and the investigation concluded on March 10th. The notification on March 25th is within 60 days of the *discovery* date of January 15th, and also within a reasonable period after the conclusion of the law enforcement investigation, which effectively paused the notification requirement. Therefore, the notification on March 25th is compliant.
Incorrect
South Carolina’s data breach notification law, codified in the South Carolina Code of Laws Section 39-9-10, outlines specific requirements for businesses that own or license unencrypted personal information of South Carolina residents. A breach is defined as unauthorized acquisition of computerized personal information. The law mandates that notification must be made without unreasonable delay and no later than 60 days after discovery of the breach, unless law enforcement determines that notification would impede an investigation. The notification must include a description of the incident, the types of personal information involved, and steps individuals can take to protect themselves. It also requires notification to the South Carolina Attorney General if more than 1,000 residents are affected. The core of the law focuses on timely and informative communication to affected individuals and relevant authorities when personal data is compromised. The scenario presented involves a cybersecurity incident impacting a South Carolina-based healthcare provider that stores patient data. The provider discovered the breach on January 15th and, after an initial assessment confirming compromised patient records, engaged with federal law enforcement. Federal authorities requested a delay in notification to avoid jeopardizing an ongoing investigation into a larger cybercrime ring. The provider complied with this request, and law enforcement concluded its active investigation on March 10th. The provider then issued notifications on March 25th. This timeline falls within the permissible parameters of the South Carolina law. The discovery was January 15th. The 60-day clock would normally expire on March 16th. However, the law allows for a delay if requested by law enforcement. Since law enforcement’s investigation concluded on March 10th, the provider had until 60 days from the original discovery date, or until March 16th, to notify, unless law enforcement requested a further extension. The prompt states law enforcement requested a delay and the investigation concluded on March 10th. The notification on March 25th is within 60 days of the *discovery* date of January 15th, and also within a reasonable period after the conclusion of the law enforcement investigation, which effectively paused the notification requirement. Therefore, the notification on March 25th is compliant.
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Question 12 of 30
12. Question
A data breach at a South Carolina-based online retailer, “Carolina Threads,” exposed a database containing customer names, email addresses, and purchase histories. The breach involved unauthorized access to approximately 15,000 customer records. The exposed data does not include sensitive information such as social security numbers or financial account details. Carolina Threads has implemented robust encryption for all financial transactions, but the customer database itself was not encrypted. Following the discovery of the breach, the company’s legal team is assessing its notification obligations under South Carolina law. What is the primary consideration for determining if a notification is required under the South Carolina Personal Information Protection Act (SC-PIPA) in this scenario?
Correct
The South Carolina Personal Information Protection Act (SC-PIPA) governs the collection, use, and disclosure of personal information by businesses. A key aspect of this law, similar to other state privacy statutes, is the definition of what constitutes “personal information” and the specific obligations that arise when such information is compromised. The act requires businesses to implement and maintain reasonable security measures to protect personal information. When a data breach occurs, SC-PIPA mandates notification to affected individuals, the South Carolina Attorney General, and, in certain circumstances, consumer reporting agencies. The notification requirements are triggered by the unauthorized acquisition of computerized personal information that would create a significant risk of harm to individuals. The law does not require notification if the data is encrypted or otherwise rendered unreadable or unusable. The calculation of the number of affected individuals is not a direct mathematical formula but rather an assessment of the scope of the breach. For instance, if a database containing 10,000 customer records, each with a name, address, and social security number, is accessed without authorization, and there is a significant risk of harm, notification would be required for all 10,000 individuals. The focus is on the nature of the information and the potential for misuse, not on a specific numerical threshold for the data itself, but rather the number of individuals whose data is impacted. The law emphasizes a risk-based approach to determining the necessity and content of breach notifications, considering factors like the type of information exposed, the potential for identity theft or financial fraud, and the likelihood of such harm occurring.
Incorrect
The South Carolina Personal Information Protection Act (SC-PIPA) governs the collection, use, and disclosure of personal information by businesses. A key aspect of this law, similar to other state privacy statutes, is the definition of what constitutes “personal information” and the specific obligations that arise when such information is compromised. The act requires businesses to implement and maintain reasonable security measures to protect personal information. When a data breach occurs, SC-PIPA mandates notification to affected individuals, the South Carolina Attorney General, and, in certain circumstances, consumer reporting agencies. The notification requirements are triggered by the unauthorized acquisition of computerized personal information that would create a significant risk of harm to individuals. The law does not require notification if the data is encrypted or otherwise rendered unreadable or unusable. The calculation of the number of affected individuals is not a direct mathematical formula but rather an assessment of the scope of the breach. For instance, if a database containing 10,000 customer records, each with a name, address, and social security number, is accessed without authorization, and there is a significant risk of harm, notification would be required for all 10,000 individuals. The focus is on the nature of the information and the potential for misuse, not on a specific numerical threshold for the data itself, but rather the number of individuals whose data is impacted. The law emphasizes a risk-based approach to determining the necessity and content of breach notifications, considering factors like the type of information exposed, the potential for identity theft or financial fraud, and the likelihood of such harm occurring.
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Question 13 of 30
13. Question
A technology firm based in Georgia, which processes and stores the personal information of residents across the United States, experiences a cybersecurity incident. An unauthorized third party gains access to a database containing customer records, including names, email addresses, and encrypted social security numbers. Analysis confirms that the encryption keys were also compromised, rendering the social security numbers accessible. The firm discovers this breach on March 15th. A thorough investigation reveals that 5,000 South Carolina residents’ personal information was accessed. The firm’s internal security team determines that the compromise of social security numbers presents a significant risk of harm to these individuals. What is the latest date by which the firm must notify the South Carolina Attorney General about this data breach, assuming no prior notification has been made and the discovery date is March 15th?
Correct
South Carolina’s data privacy landscape is primarily governed by the South Carolina Data Breach Notification Act of 2021, which aligns with many national trends but has specific nuances. This act mandates that any entity conducting business in South Carolina that owns or licenses computerized data that includes personal information of South Carolina residents must implement and maintain reasonable security measures to protect such data. A “data breach” is defined as the unauthorized acquisition of computerized data that compromises the security, confidentiality, or integrity of personal information. The notification requirement is triggered when the breach is likely to result in a significant risk of harm to consumers. The act specifies that notification must be made without unreasonable delay and in any event no later than 45 days after discovery of the breach. The notification must include specific content, such as the nature of the breach, the types of personal information involved, and steps consumers can take to protect themselves. While South Carolina does not have a comprehensive data privacy law akin to California’s CCPA/CPRA, its breach notification law is a critical component of its privacy framework. The key is understanding the trigger for notification, the definition of personal information under the act, and the timelines involved. The act does not require a specific monetary threshold for harm to trigger notification, but rather a “significant risk of harm.” The responsible party must also notify the South Carolina Attorney General if the breach affects more than 1,000 South Carolina residents.
Incorrect
South Carolina’s data privacy landscape is primarily governed by the South Carolina Data Breach Notification Act of 2021, which aligns with many national trends but has specific nuances. This act mandates that any entity conducting business in South Carolina that owns or licenses computerized data that includes personal information of South Carolina residents must implement and maintain reasonable security measures to protect such data. A “data breach” is defined as the unauthorized acquisition of computerized data that compromises the security, confidentiality, or integrity of personal information. The notification requirement is triggered when the breach is likely to result in a significant risk of harm to consumers. The act specifies that notification must be made without unreasonable delay and in any event no later than 45 days after discovery of the breach. The notification must include specific content, such as the nature of the breach, the types of personal information involved, and steps consumers can take to protect themselves. While South Carolina does not have a comprehensive data privacy law akin to California’s CCPA/CPRA, its breach notification law is a critical component of its privacy framework. The key is understanding the trigger for notification, the definition of personal information under the act, and the timelines involved. The act does not require a specific monetary threshold for harm to trigger notification, but rather a “significant risk of harm.” The responsible party must also notify the South Carolina Attorney General if the breach affects more than 1,000 South Carolina residents.
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Question 14 of 30
14. Question
A cybersecurity incident at a South Carolina-based e-commerce platform, “Palmetto Goods,” resulted in the unauthorized acquisition of the personal information of 50,000 South Carolina residents. Investigations revealed that the platform’s data security measures were demonstrably inadequate, failing to meet the “reasonable security procedures and practices” standard mandated by the South Carolina Personal Information Protection Act (SC PIPA). An affected resident, Ms. Anya Sharma, is considering initiating a class action lawsuit against Palmetto Goods. Under SC PIPA, if Ms. Sharma successfully proves the breach and the inadequacy of security measures, what is the maximum statutory damages amount she could seek on behalf of the class, assuming the statutory damages per violation remain at \$100 as established by law?
Correct
The South Carolina Personal Information Protection Act (SC PIPA), codified in Section 1-1-1200 et seq. of the South Carolina Code of Laws, outlines specific requirements for businesses that collect, maintain, and disclose personal information of South Carolina residents. A key aspect of this law, similar to other state privacy statutes, is the establishment of a private right of action for individuals whose personal information has been compromised due to a data breach, provided certain conditions are met. The law mandates that businesses implement and maintain reasonable security procedures and practices appropriate to the nature of the information. In the event of a breach of security that results in the unauthorized acquisition of personal information, a business must provide notification to affected individuals and, in certain circumstances, to the South Carolina Attorney General. The private right of action under SC PIPA allows an individual to seek statutory damages, actual damages, injunctive relief, and attorneys’ fees and costs if their personal information is subject to unauthorized acquisition and the business failed to implement reasonable security measures. The statutory damages are set at a specific amount per violation, and actual damages are also recoverable. The law also provides for a class action lawsuit. The calculation for potential damages in a class action would involve multiplying the statutory damages per violation by the number of affected individuals, plus any proven actual damages suffered by the class. For example, if a breach affected 10,000 South Carolina residents and the statutory damages were \$100 per resident, the potential statutory damages alone would be \(10,000 \times \$100 = \$1,000,000\). This is in addition to any actual damages proven by the class. Therefore, the maximum potential statutory damages for a class action would be the statutory amount multiplied by the number of affected individuals.
Incorrect
The South Carolina Personal Information Protection Act (SC PIPA), codified in Section 1-1-1200 et seq. of the South Carolina Code of Laws, outlines specific requirements for businesses that collect, maintain, and disclose personal information of South Carolina residents. A key aspect of this law, similar to other state privacy statutes, is the establishment of a private right of action for individuals whose personal information has been compromised due to a data breach, provided certain conditions are met. The law mandates that businesses implement and maintain reasonable security procedures and practices appropriate to the nature of the information. In the event of a breach of security that results in the unauthorized acquisition of personal information, a business must provide notification to affected individuals and, in certain circumstances, to the South Carolina Attorney General. The private right of action under SC PIPA allows an individual to seek statutory damages, actual damages, injunctive relief, and attorneys’ fees and costs if their personal information is subject to unauthorized acquisition and the business failed to implement reasonable security measures. The statutory damages are set at a specific amount per violation, and actual damages are also recoverable. The law also provides for a class action lawsuit. The calculation for potential damages in a class action would involve multiplying the statutory damages per violation by the number of affected individuals, plus any proven actual damages suffered by the class. For example, if a breach affected 10,000 South Carolina residents and the statutory damages were \$100 per resident, the potential statutory damages alone would be \(10,000 \times \$100 = \$1,000,000\). This is in addition to any actual damages proven by the class. Therefore, the maximum potential statutory damages for a class action would be the statutory amount multiplied by the number of affected individuals.
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Question 15 of 30
15. Question
Consider a South Carolina-based e-commerce platform, “Carolina Crafts Collective,” that discovers a security incident. Analysis reveals that unauthorized access occurred to a database containing customer names, email addresses, and purchase histories. The platform’s internal investigation confirms that no financial information or social security numbers were compromised. However, the breach exposed the personal information of over 5,000 South Carolina residents. What is the primary legal obligation of Carolina Crafts Collective under the South Carolina Personal Information Protection Act (SC PIPA) concerning this incident?
Correct
The South Carolina Personal Information Protection Act (SC PIPA) addresses data security breaches. When a business experiences a data breach affecting the personal information of South Carolina residents, it must provide notification to affected individuals and the Attorney General’s office. The act specifies the contents of this notification. Key elements include a description of the incident, the types of personal information involved, the steps individuals can take to protect themselves, and contact information for the business. The law also sets a timeframe for notification, generally without unreasonable delay and no later than 60 days after discovery, unless a longer period is required for investigation. The concept of “reasonable security procedures and practices” is central to determining whether a breach has occurred and the subsequent notification obligations. This involves assessing the nature and scope of the personal information, the sensitivity of the information, the potential harm to individuals, and the measures the business has in place to protect the information. For instance, if a breach involves highly sensitive financial data and the business had weak encryption protocols, its notification obligations would be triggered and more robust. The focus is on safeguarding personal information and ensuring transparency with consumers and the state when that safeguard is compromised.
Incorrect
The South Carolina Personal Information Protection Act (SC PIPA) addresses data security breaches. When a business experiences a data breach affecting the personal information of South Carolina residents, it must provide notification to affected individuals and the Attorney General’s office. The act specifies the contents of this notification. Key elements include a description of the incident, the types of personal information involved, the steps individuals can take to protect themselves, and contact information for the business. The law also sets a timeframe for notification, generally without unreasonable delay and no later than 60 days after discovery, unless a longer period is required for investigation. The concept of “reasonable security procedures and practices” is central to determining whether a breach has occurred and the subsequent notification obligations. This involves assessing the nature and scope of the personal information, the sensitivity of the information, the potential harm to individuals, and the measures the business has in place to protect the information. For instance, if a breach involves highly sensitive financial data and the business had weak encryption protocols, its notification obligations would be triggered and more robust. The focus is on safeguarding personal information and ensuring transparency with consumers and the state when that safeguard is compromised.
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Question 16 of 30
16. Question
A Georgia-based e-commerce company specializing in artisanal crafts experiences a cyberattack where customer data, including names, addresses, and purchase histories, is exfiltrated. Upon investigation, it is determined that the compromised data includes personal information of 1,500 residents of South Carolina. The company has implemented robust security measures, but the unauthorized acquisition of this data is confirmed. Considering the South Carolina Code of Laws concerning data breaches, what is the primary obligation of the Georgia-based company regarding the affected South Carolina residents?
Correct
South Carolina’s data breach notification law, codified in Section 1-28-10 et seq. of the South Carolina Code of Laws, outlines specific requirements for businesses that own or license personal information of South Carolina residents. The law mandates that a breach of security must be reported to affected individuals and, in certain circumstances, to the South Carolina Attorney General. The trigger for notification is the unauthorized acquisition of computerized personal information that “poses a risk of harm” to the affected individuals. This “risk of harm” standard is a key element and is generally presumed if the unencrypted personal information was accessed and the encryption key was also compromised. The law requires notification without unreasonable delay and no later than 60 days after the discovery of the breach, unless a longer period is required for remedial actions. Furthermore, if the breach affects more than 1,000 South Carolina residents, the business must also notify the Attorney General of South Carolina. The law also specifies the content of the notification, which must include a description of the incident, the types of personal information involved, and steps individuals can take to protect themselves. This scenario involves a company based in Georgia that has South Carolina customers, and the breach affects a significant number of these customers, necessitating compliance with South Carolina’s specific provisions. The law does not distinguish based on the location of the company itself, but rather on the residency of the individuals whose personal information is compromised. Therefore, the Georgia-based company is subject to South Carolina’s notification requirements because the data compromised belongs to South Carolina residents. The threshold for notifying the Attorney General is explicitly stated as affecting more than 1,000 South Carolina residents.
Incorrect
South Carolina’s data breach notification law, codified in Section 1-28-10 et seq. of the South Carolina Code of Laws, outlines specific requirements for businesses that own or license personal information of South Carolina residents. The law mandates that a breach of security must be reported to affected individuals and, in certain circumstances, to the South Carolina Attorney General. The trigger for notification is the unauthorized acquisition of computerized personal information that “poses a risk of harm” to the affected individuals. This “risk of harm” standard is a key element and is generally presumed if the unencrypted personal information was accessed and the encryption key was also compromised. The law requires notification without unreasonable delay and no later than 60 days after the discovery of the breach, unless a longer period is required for remedial actions. Furthermore, if the breach affects more than 1,000 South Carolina residents, the business must also notify the Attorney General of South Carolina. The law also specifies the content of the notification, which must include a description of the incident, the types of personal information involved, and steps individuals can take to protect themselves. This scenario involves a company based in Georgia that has South Carolina customers, and the breach affects a significant number of these customers, necessitating compliance with South Carolina’s specific provisions. The law does not distinguish based on the location of the company itself, but rather on the residency of the individuals whose personal information is compromised. Therefore, the Georgia-based company is subject to South Carolina’s notification requirements because the data compromised belongs to South Carolina residents. The threshold for notifying the Attorney General is explicitly stated as affecting more than 1,000 South Carolina residents.
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Question 17 of 30
17. Question
Consider a scenario where a technology company based in Atlanta, Georgia, experiences a significant data breach affecting the personal information of residents of South Carolina. The compromised data includes names, email addresses, and unique device identifiers. The company’s internal investigation confirms the breach occurred and identifies the scope of affected individuals. Under South Carolina law, what is the primary legal obligation of the company concerning the affected South Carolina residents, assuming the compromised data elements do not include social security numbers or financial account details?
Correct
South Carolina’s data privacy landscape, while evolving, does not currently mandate a comprehensive, standalone data privacy law akin to California’s CCPA/CPRA or Virginia’s CDPA for all businesses. Instead, protections are often found within sector-specific regulations or general consumer protection statutes. For instance, the South Carolina Unfair Trade Practices Act (SC Code Ann. § 39-5-10 et seq.) prohibits unfair or deceptive acts or practices in commerce, which could encompass certain data handling practices that mislead consumers. Furthermore, specific industries may be subject to federal laws like HIPAA for health information or GLBA for financial information, which have implications for data protection within South Carolina. When a South Carolina resident’s data is involved in a breach, the notification requirements are primarily governed by the South Carolina Data Breach Notification Act of 2008 (SC Code Ann. § 30-2-310 et seq.). This act mandates that a person or business that maintains, owns, or licenses computerized data that includes personal information shall notify the affected South Carolina resident of a breach of the security of the system. Personal information is defined as a first name or first initial and last name, in combination with any one or more of the following data elements: social security number, driver’s license number or state identification card number, account number, credit or debit card number, or any security code or password that would permit access to a consumer’s financial account. The notification must be made in the most expedient time possible and without unreasonable delay, not to exceed 60 days after discovery of the breach, unless a longer period is required for remedial actions. The notification must include specific details about the breach, the types of personal information involved, and steps the individual can take to protect themselves. The act also specifies exceptions, such as when the information is encrypted or when the breach is not likely to result in a financial loss or identity theft. Therefore, the core legal framework for data breach notification in South Carolina rests on this specific act, supplemented by broader consumer protection principles and industry-specific federal mandates.
Incorrect
South Carolina’s data privacy landscape, while evolving, does not currently mandate a comprehensive, standalone data privacy law akin to California’s CCPA/CPRA or Virginia’s CDPA for all businesses. Instead, protections are often found within sector-specific regulations or general consumer protection statutes. For instance, the South Carolina Unfair Trade Practices Act (SC Code Ann. § 39-5-10 et seq.) prohibits unfair or deceptive acts or practices in commerce, which could encompass certain data handling practices that mislead consumers. Furthermore, specific industries may be subject to federal laws like HIPAA for health information or GLBA for financial information, which have implications for data protection within South Carolina. When a South Carolina resident’s data is involved in a breach, the notification requirements are primarily governed by the South Carolina Data Breach Notification Act of 2008 (SC Code Ann. § 30-2-310 et seq.). This act mandates that a person or business that maintains, owns, or licenses computerized data that includes personal information shall notify the affected South Carolina resident of a breach of the security of the system. Personal information is defined as a first name or first initial and last name, in combination with any one or more of the following data elements: social security number, driver’s license number or state identification card number, account number, credit or debit card number, or any security code or password that would permit access to a consumer’s financial account. The notification must be made in the most expedient time possible and without unreasonable delay, not to exceed 60 days after discovery of the breach, unless a longer period is required for remedial actions. The notification must include specific details about the breach, the types of personal information involved, and steps the individual can take to protect themselves. The act also specifies exceptions, such as when the information is encrypted or when the breach is not likely to result in a financial loss or identity theft. Therefore, the core legal framework for data breach notification in South Carolina rests on this specific act, supplemented by broader consumer protection principles and industry-specific federal mandates.
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Question 18 of 30
18. Question
A financial services firm based in Charleston, South Carolina, experiences a cybersecurity incident that results in the unauthorized access and potential acquisition of sensitive personal information belonging to its South Carolina-based customers. The firm’s internal security team confirms the breach on October 1st. The company’s legal and compliance departments are working to assess the full scope of the compromise and the specific individuals affected. Under the South Carolina Personal Information Protection Act (SCPIPA), what is the absolute latest day the firm can notify its affected South Carolina residents about the breach, assuming no federal law dictates a different timeframe and the company requires the full statutory period to complete its assessment and secure its systems?
Correct
The South Carolina Personal Information Protection Act (SCPIPA) outlines specific requirements for businesses that own or license the personal information of South Carolina residents. A key aspect of SCPIPA, and privacy laws generally, is the concept of data minimization and purpose limitation. This means that organizations should collect only the personal information that is necessary for a specific, stated purpose and should not retain it for longer than is required for that purpose. When a business discovers a data breach that compromises the personal information of South Carolina residents, SCPIPA mandates certain notification procedures. The law requires notification without unreasonable delay, but in any event, no later than forty-five (45) days after the discovery of the breach, unless a longer period is required by federal law or is necessary for the business to determine the scope of the breach and restore the security of the compromised data. The law also specifies the content of the notification, which must include a description of the incident, the types of information involved, and steps individuals can take to protect themselves. While the law doesn’t explicitly prescribe a “grace period” for remediation before notification is mandatory, the forty-five-day timeframe itself serves as a statutory deadline. The prompt asks about the timeframe for notifying affected individuals in South Carolina following a breach. SCPIPA establishes this timeframe as no later than forty-five days after discovery.
Incorrect
The South Carolina Personal Information Protection Act (SCPIPA) outlines specific requirements for businesses that own or license the personal information of South Carolina residents. A key aspect of SCPIPA, and privacy laws generally, is the concept of data minimization and purpose limitation. This means that organizations should collect only the personal information that is necessary for a specific, stated purpose and should not retain it for longer than is required for that purpose. When a business discovers a data breach that compromises the personal information of South Carolina residents, SCPIPA mandates certain notification procedures. The law requires notification without unreasonable delay, but in any event, no later than forty-five (45) days after the discovery of the breach, unless a longer period is required by federal law or is necessary for the business to determine the scope of the breach and restore the security of the compromised data. The law also specifies the content of the notification, which must include a description of the incident, the types of information involved, and steps individuals can take to protect themselves. While the law doesn’t explicitly prescribe a “grace period” for remediation before notification is mandatory, the forty-five-day timeframe itself serves as a statutory deadline. The prompt asks about the timeframe for notifying affected individuals in South Carolina following a breach. SCPIPA establishes this timeframe as no later than forty-five days after discovery.
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Question 19 of 30
19. Question
Consider a South Carolina-based retail company that discovers a data security breach affecting its customer database. The breach resulted in the unauthorized access and potential acquisition of customers’ names, email addresses, and physical addresses. The company’s internal assessment indicates that approximately 500 South Carolina residents had their personal information accessed. The estimated cost to notify these individuals and implement remediation measures is $5,000. Under the South Carolina Personal Information Protection Act (SCPIPA), what is the primary determinant for the company’s obligation to notify affected South Carolina residents regarding this breach?
Correct
The South Carolina Personal Information Protection Act (SCPIPA) outlines specific requirements for businesses that own or license personal information of South Carolina residents. While SCPIPA does not mandate a specific monetary threshold for data breach notification, it does define what constitutes “personal information” and “personal information of a resident of South Carolina.” The law requires a business to conduct a reasonable investigation following a security breach to determine if unauthorized acquisition of personal information has occurred. If such an acquisition is confirmed and the information is reasonably believed to have been acquired by an unauthorized person, the business must provide notification to affected South Carolina residents without unreasonable delay. The definition of personal information under SCPIPA is broad, encompassing first and last name, home or other physical address, email address, telephone number, or any other information that allows an individual to be contacted directly or indirectly. The law does not create a private right of action, meaning individuals cannot sue directly for violations. Enforcement is primarily handled by the South Carolina Attorney General. Therefore, the absence of a specific monetary threshold for notification in SCPIPA means that any confirmed breach involving personal information of South Carolina residents, regardless of the number of individuals affected or the cost of remediation, triggers the notification obligation. The key is the unauthorized acquisition of personal information, not the cost of the breach or the number of records compromised.
Incorrect
The South Carolina Personal Information Protection Act (SCPIPA) outlines specific requirements for businesses that own or license personal information of South Carolina residents. While SCPIPA does not mandate a specific monetary threshold for data breach notification, it does define what constitutes “personal information” and “personal information of a resident of South Carolina.” The law requires a business to conduct a reasonable investigation following a security breach to determine if unauthorized acquisition of personal information has occurred. If such an acquisition is confirmed and the information is reasonably believed to have been acquired by an unauthorized person, the business must provide notification to affected South Carolina residents without unreasonable delay. The definition of personal information under SCPIPA is broad, encompassing first and last name, home or other physical address, email address, telephone number, or any other information that allows an individual to be contacted directly or indirectly. The law does not create a private right of action, meaning individuals cannot sue directly for violations. Enforcement is primarily handled by the South Carolina Attorney General. Therefore, the absence of a specific monetary threshold for notification in SCPIPA means that any confirmed breach involving personal information of South Carolina residents, regardless of the number of individuals affected or the cost of remediation, triggers the notification obligation. The key is the unauthorized acquisition of personal information, not the cost of the breach or the number of records compromised.
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Question 20 of 30
20. Question
A regional retail chain, “Palmetto Goods,” operating primarily within South Carolina, experiences a cybersecurity incident. An unauthorized third party gains access to their customer database, compromising unencrypted social security numbers and full names of thousands of South Carolina residents. Palmetto Goods promptly identifies the breach and secures its systems. Under the South Carolina Personal Information Security Act, what is the primary legal obligation of Palmetto Goods concerning the affected South Carolina residents whose personal information was compromised?
Correct
The South Carolina Personal Information Security Act (SC PISA), codified in South Carolina Code Annotated Section 39-1-10 et seq., establishes specific requirements for businesses that own or license sensitive personal information of South Carolina residents. The act mandates that such businesses implement and maintain reasonable security procedures and practices to protect personal information. While the act does not mandate a specific timeframe for notification of a breach, it does require prompt notification to affected individuals and the South Carolina Attorney General’s office. The definition of “personal information” under SC PISA includes first name or first initial and last name in combination with any one or more of the following data elements, when such data element is not encrypted, or is encrypted with an encryption key that has been accessed or is reasonably believed to have been accessed: social security number, driver’s license number, state identification card number, passport number, employer identification number, or alien registration number; account number, credit card number, or debit card number, in combination with any required security code, access code, or password that would permit access to the account; or biometric data. The act specifically exempts from its definition of personal information information that is lawfully available to the general public from federal, state, or local government records. Therefore, a business that discovers a breach of unencrypted personal information, as defined by the act, must provide notification. The scenario describes a breach of unencrypted customer social security numbers, which clearly falls under the definition of personal information requiring notification. The act’s emphasis is on the safeguarding of this specific type of data and the subsequent obligation to inform those affected and the state.
Incorrect
The South Carolina Personal Information Security Act (SC PISA), codified in South Carolina Code Annotated Section 39-1-10 et seq., establishes specific requirements for businesses that own or license sensitive personal information of South Carolina residents. The act mandates that such businesses implement and maintain reasonable security procedures and practices to protect personal information. While the act does not mandate a specific timeframe for notification of a breach, it does require prompt notification to affected individuals and the South Carolina Attorney General’s office. The definition of “personal information” under SC PISA includes first name or first initial and last name in combination with any one or more of the following data elements, when such data element is not encrypted, or is encrypted with an encryption key that has been accessed or is reasonably believed to have been accessed: social security number, driver’s license number, state identification card number, passport number, employer identification number, or alien registration number; account number, credit card number, or debit card number, in combination with any required security code, access code, or password that would permit access to the account; or biometric data. The act specifically exempts from its definition of personal information information that is lawfully available to the general public from federal, state, or local government records. Therefore, a business that discovers a breach of unencrypted personal information, as defined by the act, must provide notification. The scenario describes a breach of unencrypted customer social security numbers, which clearly falls under the definition of personal information requiring notification. The act’s emphasis is on the safeguarding of this specific type of data and the subsequent obligation to inform those affected and the state.
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Question 21 of 30
21. Question
Consider a South Carolina-based online retailer, “Palmetto Goods,” that experiences a security incident. An unauthorized third party gains access to a database containing customer records. Analysis confirms that the compromised data includes customer names, email addresses, and encrypted credit card numbers. The encryption method used is AES-256, which is considered robust and widely accepted. However, the attackers also exfiltrated a separate file containing the decryption keys for a subset of these credit card numbers. The breach is discovered on July 1st, and the investigation confirms that the decryption keys for approximately 1,500 customer records were also accessed. The remaining 10,000 records have unencrypted credit card numbers, along with names and email addresses. What is the most accurate assessment of Palmetto Goods’ notification obligations under the South Carolina Personal Information Security Breach Notification Act?
Correct
The South Carolina Personal Information Security Breach Notification Act, codified in Section 1-7-100 of the South Carolina Code of Laws, outlines the requirements for businesses to notify individuals following a breach of their personal information. The Act defines “personal information” broadly to include a first and last name or initial, in combination with one or more of the following data elements, if the data is not encrypted, redacted, or otherwise altered in a manner rendering it unreadable: social security number, driver’s license number or state identification card number, account number, credit or debit card number, or any other financial account number, or any security code, access code, or password that would permit access to a consumer’s financial account. The Act mandates notification if the breach is reasonably believed to have occurred and if unauthorized acquisition of unencrypted personal information is likely to result in a risk of identity theft or other harm to the affected individual. The notification must be provided without unreasonable delay and, if feasible, no later than 45 days after the discovery of the breach. The Act also specifies the content of the notification, which must include a description of the incident, the types of personal information involved, and steps individuals can take to protect themselves. It also allows for substitute notification if the cost of providing individual notice exceeds a certain threshold or if there are insufficient contact details. The core principle is to inform affected individuals promptly and clearly about potential risks and protective measures.
Incorrect
The South Carolina Personal Information Security Breach Notification Act, codified in Section 1-7-100 of the South Carolina Code of Laws, outlines the requirements for businesses to notify individuals following a breach of their personal information. The Act defines “personal information” broadly to include a first and last name or initial, in combination with one or more of the following data elements, if the data is not encrypted, redacted, or otherwise altered in a manner rendering it unreadable: social security number, driver’s license number or state identification card number, account number, credit or debit card number, or any other financial account number, or any security code, access code, or password that would permit access to a consumer’s financial account. The Act mandates notification if the breach is reasonably believed to have occurred and if unauthorized acquisition of unencrypted personal information is likely to result in a risk of identity theft or other harm to the affected individual. The notification must be provided without unreasonable delay and, if feasible, no later than 45 days after the discovery of the breach. The Act also specifies the content of the notification, which must include a description of the incident, the types of personal information involved, and steps individuals can take to protect themselves. It also allows for substitute notification if the cost of providing individual notice exceeds a certain threshold or if there are insufficient contact details. The core principle is to inform affected individuals promptly and clearly about potential risks and protective measures.
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Question 22 of 30
22. Question
A South Carolina-based financial services firm, “Carolina Capital Partners,” discovers that a cyberattack has resulted in the unauthorized access and potential exfiltration of sensitive client data. Their internal investigation confirms that the personal information of 1,500 South Carolina residents was compromised. This compromised data includes names, addresses, and account numbers, but not social security numbers or driver’s license numbers. The firm’s legal counsel is advising on the notification requirements under South Carolina law. Considering the specific definition of “personal information” under the South Carolina Personal Information Security Breach Notification Act, what is the most accurate assessment of Carolina Capital Partners’ immediate notification obligations to the state?
Correct
The South Carolina Personal Information Security Breach Notification Act, codified in Section 1 of Title 37 of the South Carolina Code of Laws, mandates specific actions when a data breach involving personal information occurs. Personal information is defined as a South Carolina resident’s first name or first initial and last name combined with any one or more of the following data elements, when the data element is not encrypted, or otherwise rendered unreadable or indecipherable by a security measure or a prepayment or payment instrument: social security number, driver’s license number, state identification card number, or account number, credit card number, or debit card number, in combination with any required security code, access code, or password that would permit access to the individual’s account. When a breach of this nature is discovered, the entity holding the information must conduct a prompt investigation to determine the nature and scope of the breach. If the investigation reveals that a breach of security has occurred and that personal information of a South Carolina resident has been or is reasonably believed to have been acquired by an unauthorized person, the entity must notify affected individuals. This notification must be made without unreasonable delay, but in no event later than forty-five (45) days after the discovery of the breach. The notification must include specific content, such as a description of the incident, the types of personal information involved, and steps individuals can take to protect themselves. Importantly, if the breach affects more than one thousand (1,000) South Carolina residents, the entity must also notify the South Carolina Attorney General’s office without unreasonable delay and no later than the time the individuals are notified. The Attorney General’s office must receive written notice of the breach. The law also outlines provisions for substitute notice if the cost of providing individual notice exceeds a certain threshold or if there is insufficient contact information. The core obligation is to inform affected individuals and, in cases of widespread breaches, the state’s chief legal officer, to enable timely protective measures.
Incorrect
The South Carolina Personal Information Security Breach Notification Act, codified in Section 1 of Title 37 of the South Carolina Code of Laws, mandates specific actions when a data breach involving personal information occurs. Personal information is defined as a South Carolina resident’s first name or first initial and last name combined with any one or more of the following data elements, when the data element is not encrypted, or otherwise rendered unreadable or indecipherable by a security measure or a prepayment or payment instrument: social security number, driver’s license number, state identification card number, or account number, credit card number, or debit card number, in combination with any required security code, access code, or password that would permit access to the individual’s account. When a breach of this nature is discovered, the entity holding the information must conduct a prompt investigation to determine the nature and scope of the breach. If the investigation reveals that a breach of security has occurred and that personal information of a South Carolina resident has been or is reasonably believed to have been acquired by an unauthorized person, the entity must notify affected individuals. This notification must be made without unreasonable delay, but in no event later than forty-five (45) days after the discovery of the breach. The notification must include specific content, such as a description of the incident, the types of personal information involved, and steps individuals can take to protect themselves. Importantly, if the breach affects more than one thousand (1,000) South Carolina residents, the entity must also notify the South Carolina Attorney General’s office without unreasonable delay and no later than the time the individuals are notified. The Attorney General’s office must receive written notice of the breach. The law also outlines provisions for substitute notice if the cost of providing individual notice exceeds a certain threshold or if there is insufficient contact information. The core obligation is to inform affected individuals and, in cases of widespread breaches, the state’s chief legal officer, to enable timely protective measures.
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Question 23 of 30
23. Question
Consider a scenario where a South Carolina-based e-commerce company, “Palmetto Goods,” discovers a cybersecurity incident. Analysis of the incident reveals that a third-party vendor handling customer payment processing experienced a breach, potentially exposing the last four digits of credit card numbers and the associated billing zip codes for 1,500 South Carolina residents. Palmetto Goods itself did not directly experience unauthorized access to its own systems. Under the South Carolina Data Breach Notification Act, what is the primary obligation of Palmetto Goods regarding this incident?
Correct
The South Carolina Data Breach Notification Act, codified in Section 1-7-100 of the South Carolina Code of Laws, outlines specific requirements for businesses that own or license computerized data that includes personal information of South Carolina residents. When a breach of this data occurs, the act mandates timely notification to affected individuals and, in certain circumstances, to the South Carolina Attorney General. The threshold for notification is when there is a reasonable belief that unauthorized acquisition of personal information has occurred. The act defines personal information as a resident’s first name or first initial and last name in combination with any one or more of the following data elements, when the data elements are not encrypted, redacted, or otherwise altered by any other method or technology that makes the data unreadable or unusable: social security number, driver’s license number, state identification card number, passport number, military identification number, employer identification number, or tax identification number; financial account number, credit card number, or debit card number; or any information that, if disclosed, would present a risk of identity theft or other unlawful use. The act requires notification without unreasonable delay and no later than 60 days after discovery of the breach, unless the Attorney General agrees to a later notification. If the breach affects more than 1,000 South Carolina residents, the business must also notify the Attorney General of the timing and content of the notification to the affected individuals. This comprehensive approach aims to protect South Carolina residents from the harms associated with unauthorized access to their sensitive personal data.
Incorrect
The South Carolina Data Breach Notification Act, codified in Section 1-7-100 of the South Carolina Code of Laws, outlines specific requirements for businesses that own or license computerized data that includes personal information of South Carolina residents. When a breach of this data occurs, the act mandates timely notification to affected individuals and, in certain circumstances, to the South Carolina Attorney General. The threshold for notification is when there is a reasonable belief that unauthorized acquisition of personal information has occurred. The act defines personal information as a resident’s first name or first initial and last name in combination with any one or more of the following data elements, when the data elements are not encrypted, redacted, or otherwise altered by any other method or technology that makes the data unreadable or unusable: social security number, driver’s license number, state identification card number, passport number, military identification number, employer identification number, or tax identification number; financial account number, credit card number, or debit card number; or any information that, if disclosed, would present a risk of identity theft or other unlawful use. The act requires notification without unreasonable delay and no later than 60 days after discovery of the breach, unless the Attorney General agrees to a later notification. If the breach affects more than 1,000 South Carolina residents, the business must also notify the Attorney General of the timing and content of the notification to the affected individuals. This comprehensive approach aims to protect South Carolina residents from the harms associated with unauthorized access to their sensitive personal data.
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Question 24 of 30
24. Question
Palmetto Health Systems, a healthcare provider operating exclusively within South Carolina, recently discovered that a laptop containing patient records was stolen from an employee’s car. The laptop was encrypted using industry-standard AES-256 encryption, and the encryption key was stored separately and securely, not on the laptop itself. The stolen laptop has not been recovered, and there is no indication that the encryption has been compromised or that the decryption key has been accessed. Under the South Carolina Personal Information Security Breach Notification Act, what is the primary legal determination regarding Palmetto Health Systems’ notification obligations stemming solely from this incident?
Correct
The South Carolina Personal Information Security Breach Notification Act, codified in South Carolina Code Annotated Section 30-2-310 et seq., outlines specific requirements for entities that own or license computerized data that includes personal information. A breach of security is defined as unauthorized acquisition of unencrypted computerized data that compromises the security, confidentiality, or integrity of personal information. The law mandates notification to affected individuals and, in certain circumstances, to the South Carolina Attorney General’s Office. The scenario describes a South Carolina-based healthcare provider, “Palmetto Health Systems,” which experienced a data breach. The breach involved the unauthorized acquisition of encrypted patient data. Encryption is a critical security measure that renders data unreadable without a decryption key. Therefore, the acquisition of encrypted data, without the accompanying decryption key, does not constitute a compromise of the security, confidentiality, or integrity of the personal information itself, as the data remains unreadable and protected. Consequently, Palmetto Health Systems is not obligated under the South Carolina Personal Information Security Breach Notification Act to notify affected individuals or the Attorney General’s Office solely based on the acquisition of this encrypted data, assuming no other unencrypted data was compromised or the encryption was demonstrably weak. The law’s trigger for notification is the compromise of personal information, which is prevented by effective encryption.
Incorrect
The South Carolina Personal Information Security Breach Notification Act, codified in South Carolina Code Annotated Section 30-2-310 et seq., outlines specific requirements for entities that own or license computerized data that includes personal information. A breach of security is defined as unauthorized acquisition of unencrypted computerized data that compromises the security, confidentiality, or integrity of personal information. The law mandates notification to affected individuals and, in certain circumstances, to the South Carolina Attorney General’s Office. The scenario describes a South Carolina-based healthcare provider, “Palmetto Health Systems,” which experienced a data breach. The breach involved the unauthorized acquisition of encrypted patient data. Encryption is a critical security measure that renders data unreadable without a decryption key. Therefore, the acquisition of encrypted data, without the accompanying decryption key, does not constitute a compromise of the security, confidentiality, or integrity of the personal information itself, as the data remains unreadable and protected. Consequently, Palmetto Health Systems is not obligated under the South Carolina Personal Information Security Breach Notification Act to notify affected individuals or the Attorney General’s Office solely based on the acquisition of this encrypted data, assuming no other unencrypted data was compromised or the encryption was demonstrably weak. The law’s trigger for notification is the compromise of personal information, which is prevented by effective encryption.
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Question 25 of 30
25. Question
A data breach at a Charleston-based e-commerce company, “Coastal Curations,” exposed the names, addresses, and purchase histories of thousands of South Carolina residents. An investigation by the South Carolina Attorney General’s office revealed that Coastal Curations had failed to implement basic encryption for customer data stored on its servers, a measure that could have reasonably prevented the unauthorized access. While the Attorney General can pursue enforcement actions and potentially levy fines against Coastal Curations for non-compliance with the South Carolina Personal Information Protection Act (SCPIPA), what is the primary limitation regarding individual recourse for affected South Carolina residents under SCPIPA itself?
Correct
The South Carolina Personal Information Protection Act (SCPIPA), enacted in 2008, addresses the security of personal information. While it mandates reasonable security measures for businesses that own or license personal information, it does not establish a private right of action for individuals to sue for violations. Instead, enforcement is primarily through the South Carolina Attorney General’s office. The act defines “personal information” broadly to include information that can be used to identify an individual, such as name, address, social security number, and financial account numbers. It requires businesses to develop, implement, and maintain a comprehensive information security program containing administrative, technical, and physical safeguards appropriate to the size and complexity of the business, the nature and scope of the business’s activities, and the sensitivity of the personal information the business collects, uses, or stores. This includes conducting risk assessments and implementing measures to mitigate identified risks. The act does not mandate specific technologies or prescribe a fixed set of security protocols, but rather requires a program that is reasonably designed to protect the confidentiality, integrity, and availability of personal information. The absence of a private right of action means that individuals whose data is compromised cannot directly sue the responsible entity for damages under SCPIPA, although other common law or statutory claims might be available.
Incorrect
The South Carolina Personal Information Protection Act (SCPIPA), enacted in 2008, addresses the security of personal information. While it mandates reasonable security measures for businesses that own or license personal information, it does not establish a private right of action for individuals to sue for violations. Instead, enforcement is primarily through the South Carolina Attorney General’s office. The act defines “personal information” broadly to include information that can be used to identify an individual, such as name, address, social security number, and financial account numbers. It requires businesses to develop, implement, and maintain a comprehensive information security program containing administrative, technical, and physical safeguards appropriate to the size and complexity of the business, the nature and scope of the business’s activities, and the sensitivity of the personal information the business collects, uses, or stores. This includes conducting risk assessments and implementing measures to mitigate identified risks. The act does not mandate specific technologies or prescribe a fixed set of security protocols, but rather requires a program that is reasonably designed to protect the confidentiality, integrity, and availability of personal information. The absence of a private right of action means that individuals whose data is compromised cannot directly sue the responsible entity for damages under SCPIPA, although other common law or statutory claims might be available.
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Question 26 of 30
26. Question
A South Carolina-based online retailer, “Palmetto Goods,” which processes sensitive financial and personal identification data for its customers across the United States, experiences a cybersecurity incident where an unauthorized third party gains access to its customer database. The breach results in the exposure of names, addresses, email addresses, and partial credit card numbers for approximately 5,000 South Carolina residents. Which of the following actions, based on the South Carolina Personal Information Protection Act (SC PIPA), would be the most critical immediate step for Palmetto Goods to undertake following the discovery of the breach?
Correct
The South Carolina Personal Information Protection Act (SC PIPA) is the primary legislation governing data privacy for consumers in South Carolina. This act outlines specific requirements for businesses that collect, process, and store personal information of South Carolina residents. A key aspect of SC PIPA, and many other state privacy laws, involves the concept of “reasonable security measures.” While the act does not mandate specific technologies, it requires businesses to implement and maintain administrative, technical, and physical safeguards appropriate to the nature and scope of the business and the sensitivity of the personal information collected. The determination of what constitutes “reasonable” is fact-specific and often depends on factors such as the volume and type of data processed, the potential harm from a data breach, and the business’s resources. SC PIPA specifically addresses the notification requirements in the event of a data breach, detailing when and how affected individuals and relevant authorities must be informed. The act also grants consumers certain rights regarding their personal information, though these rights may be more limited compared to federal laws like HIPAA or comprehensive state laws such as the California Consumer Privacy Act (CCPA). When considering a business’s obligations under SC PIPA, the focus is on proactive risk management and the implementation of security protocols that are demonstrably designed to prevent unauthorized access, use, or disclosure of personal information. This includes regular review and updating of security policies and procedures to adapt to evolving threats and technologies.
Incorrect
The South Carolina Personal Information Protection Act (SC PIPA) is the primary legislation governing data privacy for consumers in South Carolina. This act outlines specific requirements for businesses that collect, process, and store personal information of South Carolina residents. A key aspect of SC PIPA, and many other state privacy laws, involves the concept of “reasonable security measures.” While the act does not mandate specific technologies, it requires businesses to implement and maintain administrative, technical, and physical safeguards appropriate to the nature and scope of the business and the sensitivity of the personal information collected. The determination of what constitutes “reasonable” is fact-specific and often depends on factors such as the volume and type of data processed, the potential harm from a data breach, and the business’s resources. SC PIPA specifically addresses the notification requirements in the event of a data breach, detailing when and how affected individuals and relevant authorities must be informed. The act also grants consumers certain rights regarding their personal information, though these rights may be more limited compared to federal laws like HIPAA or comprehensive state laws such as the California Consumer Privacy Act (CCPA). When considering a business’s obligations under SC PIPA, the focus is on proactive risk management and the implementation of security protocols that are demonstrably designed to prevent unauthorized access, use, or disclosure of personal information. This includes regular review and updating of security policies and procedures to adapt to evolving threats and technologies.
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Question 27 of 30
27. Question
A technology firm based in California, which processes consumer data nationwide, discovered on March 1st that a security incident on February 28th resulted in the unauthorized acquisition of unencrypted computerized personal information belonging to 1,500 residents of South Carolina. The affected data includes names, addresses, and Social Security numbers. The firm completed its internal investigation to ascertain the scope of the breach on March 15th. Under the provisions of the South Carolina Data Breach Notification Act, what is the absolute latest date by which the firm must provide notification to the affected South Carolina residents and the South Carolina Attorney General?
Correct
The South Carolina Data Breach Notification Act, codified in South Carolina Code of Laws Section 39-9-100 et seq., mandates specific requirements for entities that own or license unencrypted personal information of South Carolina residents. This law outlines the process for notifying affected individuals and relevant state agencies in the event of a data breach. The act defines personal information as a resident’s first name or first initial and last name, in combination with any one or more of the following data elements, if the data element is not encrypted, is rendered unreadable or undecipherable by a security measure or modification: Social Security number, driver’s license number, state identification card number, passport number, employer identification number, or a financial account number or credit or debit card number, in combination with any required security code, access code, or password that would permit access to the financial account. It also includes medical information and health insurance information. A breach is defined as the unauthorized acquisition of unencrypted computerized personal information of residents of South Carolina, or the unauthorized acquisition of computerized personal information that has been encrypted if the encryption key or other means necessary to decipher the data has been acquired. When a breach occurs, the entity must notify affected South Carolina residents without unreasonable delay, but in any event, no later than forty-five (45) days after discovery of the breach, unless a longer period is required by federal law or is necessary for the entity to investigate the breach and determine the scope of the information involved. The notification must include specific content, such as a description of the incident, the types of personal information involved, the steps individuals can take to protect themselves, and contact information for the entity. If the breach affects more than one thousand (1,000) South Carolina residents, the entity must also notify the South Carolina Attorney General without unreasonable delay and no later than forty-five (45) days after discovery. This notification to the Attorney General must include specific details about the breach and the steps being taken. In the given scenario, the company discovered a breach on March 1st. The breach involved unencrypted personal information of South Carolina residents. The company’s internal investigation determined that the breach affected 1,500 South Carolina residents. According to the South Carolina Data Breach Notification Act, the company must notify affected residents and the South Carolina Attorney General within 45 days of discovery. Therefore, the latest date for notification would be April 15th (March has 31 days, so 31 – 1 = 30 days remaining in March, plus 15 days in April equals 45 days).
Incorrect
The South Carolina Data Breach Notification Act, codified in South Carolina Code of Laws Section 39-9-100 et seq., mandates specific requirements for entities that own or license unencrypted personal information of South Carolina residents. This law outlines the process for notifying affected individuals and relevant state agencies in the event of a data breach. The act defines personal information as a resident’s first name or first initial and last name, in combination with any one or more of the following data elements, if the data element is not encrypted, is rendered unreadable or undecipherable by a security measure or modification: Social Security number, driver’s license number, state identification card number, passport number, employer identification number, or a financial account number or credit or debit card number, in combination with any required security code, access code, or password that would permit access to the financial account. It also includes medical information and health insurance information. A breach is defined as the unauthorized acquisition of unencrypted computerized personal information of residents of South Carolina, or the unauthorized acquisition of computerized personal information that has been encrypted if the encryption key or other means necessary to decipher the data has been acquired. When a breach occurs, the entity must notify affected South Carolina residents without unreasonable delay, but in any event, no later than forty-five (45) days after discovery of the breach, unless a longer period is required by federal law or is necessary for the entity to investigate the breach and determine the scope of the information involved. The notification must include specific content, such as a description of the incident, the types of personal information involved, the steps individuals can take to protect themselves, and contact information for the entity. If the breach affects more than one thousand (1,000) South Carolina residents, the entity must also notify the South Carolina Attorney General without unreasonable delay and no later than forty-five (45) days after discovery. This notification to the Attorney General must include specific details about the breach and the steps being taken. In the given scenario, the company discovered a breach on March 1st. The breach involved unencrypted personal information of South Carolina residents. The company’s internal investigation determined that the breach affected 1,500 South Carolina residents. According to the South Carolina Data Breach Notification Act, the company must notify affected residents and the South Carolina Attorney General within 45 days of discovery. Therefore, the latest date for notification would be April 15th (March has 31 days, so 31 – 1 = 30 days remaining in March, plus 15 days in April equals 45 days).
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Question 28 of 30
28. Question
A healthcare provider operating in South Carolina discovers that an unencrypted laptop containing patient demographic data, including names and addresses, along with non-medical appointment scheduling information, was stolen from an administrative office. The provider conducts an internal review and concludes that while the data was accessed, the specific information compromised does not include Social Security numbers, financial account details, or any other data elements that, when combined with a name, would constitute “personal information” as defined by the South Carolina Personal Information Protection Act. Based on this assessment, what is the provider’s obligation under SCPIPA?
Correct
The South Carolina Personal Information Protection Act (SCPIPA) governs data breach notification requirements for entities that own or license sensitive personal information of South Carolina residents. The Act mandates that a breach of security is presumed to have occurred if there is unauthorized acquisition of computerized personal information. The definition of “personal information” under SCPIPA includes a resident’s first name or first initial and last name in combination with any one or more of the following data elements: Social Security number, driver’s license number, state identification card number, passport number, checking account number, savings account number, credit card number, debit card number, or any other financial account number. It also includes a username or unique identifier combined with a password or security question and answer that would permit access to an online account. The Act specifies that a notification is not required if, after an investigation, the entity reasonably determines that the misuse of personal information is not likely to result in harm to consumers. This determination must be documented in writing. The notification must be provided without unreasonable delay and must include specific content, such as a description of the incident, the types of information involved, and steps individuals can take to protect themselves. The timeframe for notification is generally within 45 days of discovery, unless a longer period is required for specific investigations or law enforcement purposes. The core of the question lies in understanding the threshold for notification and the exceptions to this rule, particularly the “no likelihood of harm” exception which requires a documented, reasonable determination.
Incorrect
The South Carolina Personal Information Protection Act (SCPIPA) governs data breach notification requirements for entities that own or license sensitive personal information of South Carolina residents. The Act mandates that a breach of security is presumed to have occurred if there is unauthorized acquisition of computerized personal information. The definition of “personal information” under SCPIPA includes a resident’s first name or first initial and last name in combination with any one or more of the following data elements: Social Security number, driver’s license number, state identification card number, passport number, checking account number, savings account number, credit card number, debit card number, or any other financial account number. It also includes a username or unique identifier combined with a password or security question and answer that would permit access to an online account. The Act specifies that a notification is not required if, after an investigation, the entity reasonably determines that the misuse of personal information is not likely to result in harm to consumers. This determination must be documented in writing. The notification must be provided without unreasonable delay and must include specific content, such as a description of the incident, the types of information involved, and steps individuals can take to protect themselves. The timeframe for notification is generally within 45 days of discovery, unless a longer period is required for specific investigations or law enforcement purposes. The core of the question lies in understanding the threshold for notification and the exceptions to this rule, particularly the “no likelihood of harm” exception which requires a documented, reasonable determination.
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Question 29 of 30
29. Question
A financial services firm based in Charleston, South Carolina, discovers a cybersecurity incident that has potentially exposed the unencrypted personal information of 5,000 South Carolina residents. The firm’s internal IT security team identifies the breach on March 1st. Following a rapid investigation to confirm the scope and nature of the compromised data, which included names, addresses, and Social Security numbers, the firm ascertains the breach occurred and affects these residents by March 15th. The firm has no reason to believe that law enforcement or any regulatory body has requested a delay in notification. Under the South Carolina Personal Information Security Breach Notification Act, what is the latest date by which the firm must provide notification to the affected South Carolina residents?
Correct
The South Carolina Personal Information Security Breach Notification Act, codified in Section 1-1-810 et seq. of the South Carolina Code of Laws, mandates specific actions when a data breach occurs. When a business discovers a breach of security involving personal information, it must conduct a prompt investigation to determine the nature and scope of the breach and identify the individuals whose personal information has been or is reasonably believed to have been acquired by an unauthorized person. If the investigation reveals that a breach has occurred and that the personal information of a South Carolina resident has been acquired, the business must provide notification to affected residents without unreasonable delay. The law specifies that this notification must be made in the most expedient time possible and without unreasonable delay, but in no case later than 60 days after the discovery of the breach, unless law enforcement or a regulatory agency requests a delay. The notification must include specific details about the breach, the type of information compromised, and steps individuals can take to protect themselves. The Act does not mandate a specific internal review period before notification, but rather emphasizes promptness after discovery and investigation. Therefore, the most accurate timeframe for notification, assuming no law enforcement delay, is without unreasonable delay, but no later than 60 days after discovery.
Incorrect
The South Carolina Personal Information Security Breach Notification Act, codified in Section 1-1-810 et seq. of the South Carolina Code of Laws, mandates specific actions when a data breach occurs. When a business discovers a breach of security involving personal information, it must conduct a prompt investigation to determine the nature and scope of the breach and identify the individuals whose personal information has been or is reasonably believed to have been acquired by an unauthorized person. If the investigation reveals that a breach has occurred and that the personal information of a South Carolina resident has been acquired, the business must provide notification to affected residents without unreasonable delay. The law specifies that this notification must be made in the most expedient time possible and without unreasonable delay, but in no case later than 60 days after the discovery of the breach, unless law enforcement or a regulatory agency requests a delay. The notification must include specific details about the breach, the type of information compromised, and steps individuals can take to protect themselves. The Act does not mandate a specific internal review period before notification, but rather emphasizes promptness after discovery and investigation. Therefore, the most accurate timeframe for notification, assuming no law enforcement delay, is without unreasonable delay, but no later than 60 days after discovery.
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Question 30 of 30
30. Question
Consider a South Carolina-based e-commerce company, “Carolina Crafts,” which experienced a significant cybersecurity incident. This breach exposed the digital footprints of its customers, including their purchase history, preferred product categories, and website navigation patterns. If this aggregated browsing data, when analyzed in conjunction with other non-personally identifiable information that Carolina Crafts also possesses, can be reasonably used to identify specific South Carolina residents and their online activities, how would the South Carolina Personal Information Protection Act (SC PIPA) classify this type of exposed data in the context of a data breach notification requirement?
Correct
The South Carolina Personal Information Protection Act (SC PIPA) establishes specific requirements for businesses that own or license the personal information of South Carolina residents. One key aspect is the definition of “personal information” itself. The Act defines personal information broadly to include information that can be used to identify an individual, directly or indirectly. This encompasses a wide range of data points, including but not limited to, a person’s name, address, social security number, date of birth, and even unique identifiers such as IP addresses or biometric data when linked to an identifiable individual. The Act mandates that businesses must implement reasonable security procedures and practices to protect this personal information from unauthorized access, use, disclosure, alteration, or destruction. The threshold for applicability is the ownership or licensing of personal information of 100,000 or more South Carolina residents, or the processing of personal information of 1,000 or more South Carolina residents. The scenario presented involves a data breach affecting the personal information of 150,000 South Carolina residents, clearly exceeding the threshold for compliance with the Act’s notification and security requirements. The core of the question lies in understanding what constitutes “personal information” under SC PIPA and how a specific type of data, like a customer’s browsing history on a company’s website, falls within this definition when it can be used to infer or directly identify the individual. If this browsing history, when combined with other readily available data or through sophisticated analysis, allows for the identification of a specific South Carolina resident, it is considered personal information under the Act. Therefore, the disclosure of such information in a data breach triggers the Act’s provisions.
Incorrect
The South Carolina Personal Information Protection Act (SC PIPA) establishes specific requirements for businesses that own or license the personal information of South Carolina residents. One key aspect is the definition of “personal information” itself. The Act defines personal information broadly to include information that can be used to identify an individual, directly or indirectly. This encompasses a wide range of data points, including but not limited to, a person’s name, address, social security number, date of birth, and even unique identifiers such as IP addresses or biometric data when linked to an identifiable individual. The Act mandates that businesses must implement reasonable security procedures and practices to protect this personal information from unauthorized access, use, disclosure, alteration, or destruction. The threshold for applicability is the ownership or licensing of personal information of 100,000 or more South Carolina residents, or the processing of personal information of 1,000 or more South Carolina residents. The scenario presented involves a data breach affecting the personal information of 150,000 South Carolina residents, clearly exceeding the threshold for compliance with the Act’s notification and security requirements. The core of the question lies in understanding what constitutes “personal information” under SC PIPA and how a specific type of data, like a customer’s browsing history on a company’s website, falls within this definition when it can be used to infer or directly identify the individual. If this browsing history, when combined with other readily available data or through sophisticated analysis, allows for the identification of a specific South Carolina resident, it is considered personal information under the Act. Therefore, the disclosure of such information in a data breach triggers the Act’s provisions.