The correct answer is True.

Mishandling customers' personal information can lead to civil litigation for privacy violations because individuals and regulators can pursue claims under statutory and common law. Laws such as the General Data Protection Regulation and the California Consumer Privacy Act create rights and remedies and those frameworks can support private lawsuits or representative actions when data is misused or improperly disclosed.

Civil suits may arise even without a technical security breach when data is collected, used, or shared contrary to privacy promises or legal obligations. Typical causes of action include negligence, invasion of privacy, breach of contract, and unfair business practices and these claims can lead to damages, injunctions, and regulatory penalties.

False is incorrect because asserting no civil liability exists ignores the numerous statutes and case law that allow plaintiffs and regulators to seek remedies for privacy violations arising from mishandled personal information.

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