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Rea & Associates Shares That The SHIELD Act Protects Consumer Privacy

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Rea & Associates Shares That The SHIELD Act Protects Consumer Privacy

April 01
07:15 2020
Rea & Associates Shares That The SHIELD Act Protects Consumer Privacy
Rea & Associates made an announcement about the SHIELD Act, which is designed to protect consumer privacy. The company made the announcement as a public service to consumers.

Cleveland, OH – Apr 1, 2020 – Rea & Associates recently made a public service announcement concerning the “Stop Hacks and Improve Electronic Data Security Act” (also known as the SHIELD Act) which is designed to protect consumer privacy. The company stated that the act – which took effect on March 21, 2020 – requires businesses that collect private information for New York residents to implement reasonable safeguards for data protection.

Rea & Associates indicated that the SHIELD Act will broaden – and redline – private information, breach notification, and inform organizations (including small- to mid-sized businesses) of their new responsibilities. The Cleveland accounting firm stated that this important legislation came about because several states are enforcing more confidentiality and data security regulations to protect consumers from breaches of privacy.

According to Rea & Associates, one of the purposes of the SHIELD Act is to redefine “private information” in the state of New York. Under the SHIELD Act, “private information” now includes a consumer’s name; phone number; Social Security number; identification card or account numbers (driver or non-driver); credit or debit card number in combination with any passwords, access codes, or security codes that would permit access to someone’s financial account; biometric information (including fingerprint, voice print, or retina image); and the consumer’s username or email address in combination with their password or security question/answer. Rea & Associates said that safeguarding such information is vital to keeping consumers protected online.

Rea & Associates stated that the SHIELD Act also redefines the term “data breach.” Prior to the SHIELD Act, “data breach” was defined as “unauthorized acquisition of computerized data.” Under the SHIELD Act, a breach now includes adding biometric information and email address to the definition of personal information; notifying that information was viewed, communicated with, used, or altered by an unauthorized person or a person without valid authorization; notification to the New York Attorney General within 10 days of of the discovery of the breach (if the breach affects over 500 New York residents); and increased penalties for violations.

Rea & Associates explained the act’s impact on out-of-state businesses, as well as small-to-mid-sized businesses. According to Rea & Associates, the SHIELD Act applies to any company that does business within the state of New York, including small businesses in Cleveland, OH. Rea & Associated pointed out that small businesses may be exempted if they meet the following criteria:

  • Fewer than 50 employees

  • Less than $3 million in gross annual revenue for each of the last 3 fiscal years, or less than $5 million in year-end total assets.


Rea & Associates cautioned that the SHIELD Act will force many businesses to reevaluate and update their data security policy.

About Rea & Associates

Rea & Associates has been doing business in Ohio for over 80 years, with reviews found at https://goo.gl/maps/qmy9KiKvLFnLu7VAA.  It specializes in accounting and business consulting services, including IT and data security. The company is dedicated to helping Ohio’s large and small businesses succeed.

Media Contact
Company Name: Rea & Associates
Contact Person: Becca Davis
Email: Send Email
Phone: (216) 573-2330
Address:6300 Rockside Road
City: Cleveland
State: OH
Country: United States
Website: reacpa.com/cleveland-cpa-firm/