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Experts: Rise in Litigation Means Contracts Are Key

DATA PROTECTION—U.S.

November 3, 2011

According to a recent study, 53 percent of Americans say they would take legal action against an organization that loses their personal information. While litigation has become seemingly more common in breach cases, "they've been notoriously unsuccessful," says one DC attorney. But a recent court ruling stating that consumers' proactive measures to protect themselves could constitute financial damages shows that things may be changing. David Navetta, CIPP, of the Information Law Group predicts, "protections in the service provider contracts are going to become very important." InformationWeek points to recent lawsuits in the millions of dollars waged against Stanford Hospital and the Department of Defense as evidence for the importance of contract language with third-party service providers. Editor's Note: Read the most recent edition of Inside 1 to 1: PRIVACY for expert insights on how to avoid becoming a target of FTC enforcement or legal action. 
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