Alabama Cybersecurity Laws You Should Know (2025)
In today’s digital economy, Alabama businesses face growing cybersecurity risks and compliance challenges. Understanding Alabama cybersecurity laws is critical for protecting sensitive information, maintaining customer trust, and avoiding legal penalties. Below, we’ll outline the key cybersecurity regulations that apply to Alabama businesses, including both state-specific and federal laws that influence data protection across industries.
Alabama Cybersecurity Laws
Alabama Data Breach Notification Act of 2018 (Ala. Code § 8-38-1 et seq.)
The Alabama Data Breach Notification Act is the state’s primary cybersecurity law. It requires businesses to notify affected individuals within 45 days of discovering a data breach involving personal information. The law also requires companies to implement “reasonable security measures” to prevent unauthorized access, use, or disclosure of personal data.
Alabama Deceptive Trade Practices Act (Ala. Code § 8-19-1 et seq.)
This law prohibits unfair or deceptive acts in commerce, which includes misrepresenting how consumer data is collected, used, or protected. Companies can face fines and enforcement actions from the Alabama Attorney General for misleading privacy or cybersecurity statements.
Alabama Computer Crimes Act (Ala. Code § 13A-8-100 et seq.)
The Alabama Computer Crimes Act criminalizes unauthorized computer access, data tampering, and interference with computer systems. It applies to both internal misuse (like employee data theft) and external attacks such as hacking or phishing.
Alabama Uniform Electronic Transactions Act (Ala. Code § 8-1A-1 et seq.)
Federal and Industry-Specific Cybersecurity Regulations That Affect Alabama Businesses
Payment Card Industry Data Security Standard (PCI DSS)
PCI DSS applies to all Alabama businesses that process credit card payments. Compliance protects customer data through encryption, firewalls, and strict access controls.
Health Insurance Portability and Accountability Act (HIPAA)
HIPAA applies to healthcare providers, insurers, and business associates in Alabama that handle personal health information (PHI). It mandates physical, administrative, and technical safeguards to protect sensitive data.
Gramm-Leach-Bliley Act (GLBA)
Financial institutions in Alabama must comply with GLBA, which requires them to safeguard customer financial data and explain how information is shared.
General Data Protection Regulation (GDPR)
While a European Union regulation, GDPR applies to Alabama businesses that collect or process data from EU residents. It emphasizes transparency, consent, and user rights over personal data.
Cybersecurity Requirements for Financial Services Companies (NYDFS 23 NYCRR 500)
Alabama financial institutions with operations in New York must comply with NYDFS cybersecurity standards, including risk assessments, encryption, and ongoing monitoring.
NIST Cybersecurity Framework
The NIST Cybersecurity Framework is a voluntary guideline widely used in Alabama industries. It helps organizations structure their cybersecurity programs around five key functions: Identify, Protect, Detect, Respond, and Recover.
Federal Trade Commission (FTC) Act
The FTC Act requires Alabama businesses to maintain reasonable cybersecurity practices. The FTC can bring enforcement actions against companies that fail to protect consumer data or mislead customers about their security posture.
Children’s Online Privacy Protection Act (COPPA)
If your Alabama business collects information from children under 13, COPPA applies. It requires parental consent and limits how businesses can collect or share children’s personal data.
Sarbanes-Oxley Act (SOX)
Publicly traded companies in Alabama must comply with SOX, which strengthens data integrity and internal control requirements for financial reporting systems.
Family Educational Rights and Privacy Act (FERPA)
FERPA protects the privacy of student education records for Alabama schools and institutions. It requires parental consent before disclosing personally identifiable student information.
Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA)
CAN-SPAM Act
The CAN-SPAM Act applies to Alabama businesses that send commercial emails. It requires clear opt-out options, accurate sender information, and truthful subject lines.
Defense Federal Acquisition Regulation Supplement (DFARS)
Alabama companies contracting with the Department of Defense must comply with DFARS, which incorporates NIST cybersecurity standards to safeguard controlled unclassified information.
Section 5 of the FTC Act (Unfair or Deceptive Practices)
This provision of the FTC Act prohibits unfair or deceptive cybersecurity practices. Alabama businesses must accurately represent how they handle and protect customer data.
More Alabama Cybersecurity Laws to Be Aware Of
The laws above form the foundation of cybersecurity compliance in Alabama, but additional regulations may apply based on your industry and data type. Companies in healthcare, defense, and critical infrastructure must follow federal frameworks such as HIPAA, DFARS, and CISA guidelines.
Maintaining compliance means performing regular security audits, training employees, and staying informed about changes to both state and federal cybersecurity regulations.
Conclusion
Staying compliant with Alabama cybersecurity laws helps protect businesses from data breaches, penalties, and loss of customer trust. By aligning your company with recognized frameworks like NIST or ISO 27001, you can strengthen your defenses and maintain compliance across industries.
If you need help managing cybersecurity compliance or strengthening your data protection strategy, we offer tailored solutions designed to secure your business and keep you ahead of regulatory changes.
Frequently Asked Questions About Alabama Cybersecurity Laws
- What is the main cybersecurity law in Alabama?
The Alabama Data Breach Notification Act of 2018 is the state’s primary cybersecurity law, requiring businesses to notify affected individuals and the Attorney General within 45 days of a data breach. - What data is protected under Alabama’s cybersecurity laws?
Protected data includes personal identifiers such as Social Security numbers, driver’s license numbers, medical information, financial account data, and other information that could identify an individual. - Do small businesses in Alabama have to comply with data breach laws?
Yes. Any organization that collects or stores personal information about Alabama residents — regardless of size — is subject to the state’s breach notification requirements. - Does Alabama require specific cybersecurity frameworks?
No specific framework is mandated, but businesses are encouraged to adopt nationally recognized standards such as NIST or ISO to demonstrate reasonable security practices. - How are cybersecurity laws enforced in Alabama?
The Alabama Attorney General enforces state laws related to data privacy and cybersecurity, while federal agencies like the FTC and CISA oversee industry-specific compliance.
Read More Cybersecurity Laws by State:
Florida Cybersecurity Laws You Should Know (2025)
Ohio Cybersecurity Laws You Should Know (2025)
Virginia Cybersecurity Laws You Should Know (2025)
North Carolina Cybersecurity Laws You Should Know (2025)
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Readers should consult qualified legal counsel for advice specific to their organization or situation.
