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Acer America Corp. is a computer manufacturer of business and consumer PCs, notebooks, ultrabooks, projectors, servers, and storage products.

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333 West San Carlos Street
San Jose, California 95110
United States

WWW: acer.com

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February 25, 2025 |

MSP Guide: Complying with NJ and NY Data Privacy Laws

This guide breaks down the key data privacy laws in NJ and NY, outlines how MSPs can help businesses stay compliant, and provides actionable steps to build compliance-focused service offerings.

Data privacy laws are evolving rapidly, and businesses in New Jersey and New York face some of the strictest compliance requirements in the country. For MSPs, this presents both a challenge and an opportunity—clients need expert guidance to navigate complex regulations. MSPs that offer compliance services can establish themselves as trusted advisors while generating new revenue streams.

This guide breaks down the key data privacy laws in NJ and NY, outlines how MSPs can help businesses stay compliant, and provides actionable steps to build compliance-focused service offerings.


1. Key Data Privacy Laws Affecting NJ/NY Businesses

New York SHIELD Act (Stop Hacks and Improve Electronic Data Security Act)

The NY SHIELD Act applies to any business that collects private information from New York residents, even if the company is not physically based in the state. It expands the definition of private data, strengthens breach notification requirements, and mandates that businesses implement reasonable security measures.

Key Requirements for Businesses:

  • Implement administrative, technical, and physical safeguards to protect customer data.
  • Notify affected individuals and government agencies in the event of a data breach.
  • Enforce data encryption, multi-factor authentication (MFA), and employee cybersecurity training.

MSP Opportunities:

  • Offer risk assessments and security audits to evaluate SHIELD Act compliance.
  • Provide MFA, encryption, and network security solutions to meet the technical safeguard requirements.
  • Assist in incident response planning and breach notification protocols for clients.

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New Jersey Data Breach Notification Law

This law requires any business that collects personal information from NJ residents to notify affected individuals and the state Attorney General in the event of a breach. Unlike the SHIELD Act, NJ’s law does not explicitly mandate security measures, but failing to protect data can result in liability under state consumer protection laws.

Key Requirements for Businesses:

  • Notify customers and authorities “in the most expedient time possible” after discovering a data breach.
  • Include specific details on the breach and mitigation steps.
  • Implement reasonable security policies to protect personal information.

MSP Compliance Services Opportunities:

  • Provide breach detection and reporting solutions to help businesses respond quickly.
  • Offer managed SIEM (Security Information and Event Management) to monitor for suspicious activity.
  • Help businesses implement secure backup and disaster recovery plans to prevent data loss.

HIPAA (Health Insurance Portability and Accountability Act)

HIPAA applies to healthcare providers, insurance companies, and any business handling Protected Health Information (PHI). Organizations must meet stringent security and privacy requirements to protect patient data.

Key Requirements for Businesses:

  • Encrypt electronic health records (EHRs) and control access with role-based permissions.
  • Conduct risk assessments and train employees on data security best practices.
  • Report any data breaches affecting PHI within 60 days of discovery.

MSP Compliance Services Opportunities:

  • Offer HIPAA compliance assessments and training for medical clients.
  • Implement secure cloud storage and backup solutions for medical records.
  • Provide 24/7 cybersecurity monitoring to prevent unauthorized PHI access.

PCI DSS (Payment Card Industry Data Security Standard)

Any business that processes, stores, or transmits credit card information must comply with PCI DSS. This applies to retailers, e-commerce businesses, and hospitality companies.

Key Requirements for Businesses:

  • Encrypt payment data and limit access to customer credit card details.
  • Install firewalls, antivirus software, and endpoint security tools to prevent attacks.
  • Regularly test security systems and conduct vulnerability scans.

MSP Compliance Services Opportunities:

  • Provide PCI DSS compliance audits and network segmentation services.
  • Offer managed firewall and intrusion detection solutions.
  • Help retailers migrate to secure cloud-based payment platforms.

2. Why Compliance is Essential for MSPs and Clients

For MSPs:

  • Avoid Legal & Financial Risks – Non-compliance can lead to lawsuits, government fines, and reputational damage.
  • Increase Business Value – MSPs that offer compliance services stand out in a crowded market.
  • Generate Recurring Revenue – Compliance-as-a-service provides steady, ongoing revenue from audits, security upgrades, and monitoring.

For Clients:

  • Protect Customer Trust – Data breaches can cause massive reputation damage and customer churn.
  • Avoid Financial Penalties – Fines for non-compliance can reach millions of dollars for large-scale breaches.
  • Improve Security Posture – Compliance leads to stronger cybersecurity practices, reducing the risk of attacks.

3. How MSPs Can Help Businesses Stay Compliant

Conduct Compliance Risk Assessments

  • Perform gap analyses to identify vulnerabilities in client networks.
  • Create a customized remediation plan for businesses to meet compliance standards.

Implement Security Controls

  • Deploy firewalls, endpoint protection, and network segmentation for data security.
  • Set up multi-factor authentication (MFA) and role-based access control to limit unauthorized data access.

Offer Continuous Compliance Monitoring

  • Provide 24/7 managed detection & response (MDR) for real-time threat prevention.
  • Automate compliance reporting with SIEM and security analytics platforms.

Develop Incident Response & Breach Notification Plans

  • Create pre-approved response templates for clients in case of a breach.
  • Establish business continuity and disaster recovery (BCDR) plans to minimize downtime.

4. Tools & Resources for Compliance Management

  • Security Information and Event Management (SIEM): There are numerous choices for MSPs, including Splunk, LogRhythm, AlienVault
  • Endpoint Security & Encryption: There are numerous choices for MSPs, including CrowdStrike, SentinelOne, BitLocker
  • Compliance Management Software: There are numerous choices for MSPs, including Vanta, Drata, Qualys
  • Cloud Security Tools: There are numerous choices for MSPs, including Microsoft Defender for Cloud, AWS Security Hub

Conclusion

Data privacy laws and regulations in New Jersey and New York are complex but essential for businesses to follow. MSPs that offer compliance services will have a competitive edge, providing clients with critical security, compliance audits, and risk management solutions.

Your next step is to assess whether your MSP is ready to provide compliance-as-a-service and identify industries where your expertise can make the biggest impact.


See more articles for New Jersey MSPs here >>>>>


ChannelPro has created this resource to help busy MSPs streamline their decision-making process. This resource offers a starting point for evaluating key business choices, saving time and providing clarity. While this resource is designed to guide you through important considerations, we encourage you to seek more references and professional advice to ensure fully informed decisions.

Images: iStock

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