The “Sample Data Breach Notification” letter from Glasswasherparts.com can be understood through both economic and social science perspectives. Economically, the theory of information asymmetry applies. The company had knowledge of the data breach well before customers were informed, creating an imbalance where consumers couldn’t take timely action to protect themselves. This reflects a common issue in markets where one party has more or better information than the other. Another relevant concept is cost-benefit analysis. It’s possible the company chose not to invest heavily in cybersecurity, weighing the costs of prevention against the likelihood or potential impact of a breach. In hindsight, that tradeoff appears misjudged; showing how short-term savings can lead to long-term costs.

From a social science standpoint, social contract theory is relevant. There’s an unspoken agreement between consumers and businesses: when people provide their personal data, they expect it to be handled responsibly. A breach breaks that trust, potentially changing how customers interact with the company or similar businesses in the future. Labeling theory also offers insight. Once people are identified as victims of a data breach, it can shift how they view themselves and the systems they interact with. This can lead to increased caution, reduced trust in digital platforms, or even changes in online behavior.