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Michigan: Bill to amend Identity Theft Protection Act introduced

Senate Bill ('SB') 0672 for a bill to amend Public Act 452 of 2004 for the Identity Theft Protection Act, was introduced, on 5 October 2021, in the Michigan State Senate. In particular, SB 0672 seeks to introduce certain affirmative defences via information security programs. In addition, SB 0672 notes that a covered entity is entitled to an affirmative defence to any tort cause of action that alleges that the covered entity's failure to implement reasonable information security controls resulted in a security breach if the covered entity demonstrates all of the following:

  • the covered entity established, maintained, and reasonably complied with a written cybersecurity program that contains administrative, technical, and physical safeguards for the protection of personal information and personal identifying information that reasonably conforms to the current version of an industry-recognised cybersecurity framework or standard; and
  • the covered entity's cybersecurity program is designed to do all of the following:
    • protect the security and confidentiality of personal information and personal identifying information;
    • protect against anticipated threats or hazards to the  security or integrity of personal information and personal identifying information; and
    • protect against unauthorised access to and acquisition of personal information and personal identifying information that is likely to result in a material risk of identity theft to the individual to whom the personal information and personal identifying information relate.

Moreover, SB 0672 outlines that a cybersecurity program is appropriate if it is based on all of the following factors:

  • the size and complexity of the covered entity;
  • the nature and scope of the activities of the covered entity;
  • the sensitivity of the information to be protected;
  • the cost and availability of tools to improve information security and reduce vulnerabilities; and
  • the resources available to the covered entity.

Furthermore, SB 0672 highlights that it does not provide a private right of action, including a class action, with respect to any act or practice under the Identity Theft Protection Act.

You can read SB 0672 here and track its progress here.

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