PlayStation data breach: world nations prepare to legal attack on Sony

World nations may start a massive prosecution of Sony after it delayed disclosing a security breach of its popular PlayStation Network.

Last week on April 19 Sony shut down its PlayStation Network after discovering the breach. However, it was only this week Tuesday the company unveiled that the system had been hacked and that users’ data may have been stolen.

Several members of Congress in the United States were shocked by the breach and one U.S. law firm filed a lawsuit in California on behalf of consumers.

"Gamers are angry that Sony's CEO hasn't come out to explain the situation and investors are disappointed over the company's corporate governance," said Michael Wang, manager of overseas funds at Prudential Financials in Taipei, which owns shares in Sony.

In the United States, attorneys general, who act as consumer advocates, had begun investigating the matter or reviewing it with staff in several states, including in Iowa, Connecticut, Florida and Massachusetts, according to their offices.

It is also expected that the US regulators would also get involved in the investigation. It is well known that the Federal Trade Commission usually pursues companies that failed to safeguard consumer data. It could investigate if it determines Sony failed to tell its customers about the company's privacy policies.

An investigation was also launched in Britain by a government regulator.

Britain's Information Commissioner's Office said it had contacted Sony and was investigating whether it violated laws that require it to safeguard personal information. The commissioner's investigation would depend in part on whether Sony stored user information in Britain.

Indeed, Sony may come under the toughest scrutiny from non-U.S. regulators, which have stricter consumer privacy laws.

"European countries are going to go crazy and be all over this," said Dan Burk, a professor at the University of California, Irvine School of Law. "They are absolutely obsessed about companies holding personal information."