Democrats Push to Include Strong Consumer Protections in Data Security Legislation

Committee Democrats have been active in pushing for stronger consumer protections in data security legislation.  Reps. Frank, Davis and Bean introduced the Consumer Data Security and Notification Act of 2005, H.R. 3140, to provide tough consumer protections and enforcement against credit card fraud and identity theft.

The Consumer Data Security and Notification Act of 2005 would make the following changes to federal law to enhance data security and help consumers protect their private information:

• Regulation of Data Brokers: Expands the Fair Credit Reporting Act (FCRA) to cover unregulated data brokers, such as ChoicePoint and LexisNexis, requiring them to operate by the same information sharing standards and consumer protections as consumer reporting agencies.
  
• New Data Security Standards: Imposes similar data security obligations and standards on data brokers and consumer reporting agencies as the Gramm-Leach-Bliley Act requires of regulated financial institutions.
  
• Uniform Data Breach Notification: Establishes uniform requirements for data brokers, consumer reporting agencies and financial institutions to notify consumers following a breach in any data system in which sensitive consumer information has been obtained by an unauthorized party and is likely to be misused.
  
• Notification by Merchants: Imposes greater responsibility on retail merchants to protect their customer’s payment account information by requiring that any business that routinely collects and maintains customer credit card, checking or other payment information must notify customers or their financial institutions when financial account information has been obtained and is likely to be misused by unauthorized parties.

 

Click here for the June 15, 2006 press release on how provisions in the data security bill that passed the Financial Services Committee (H.R. 3997) will erase protections for 149 million Americans by taking away their right to freeze their credit.

Click here for a chart that details the effective dates and provisions of all the states that have enacted legislation that allows consumers to freeze their credit.

Click here for a list of recent data breaches.

Click here for a June 21, 2006 letter from the AARP to House Speaker Hastert in opposition to H.R. 3997 and urging that all consumers have the right to the consumer credit freeze option.

Click here to read a detailed summary of the Consumer Data Security and Notification Act (H.R. 3140).

Click here for a copy of the text of H.R. 3140 in PDF format.

Click here for a February 15, 2006 press release on how it is wrong that retailers are shielded from responsibility on data breaches.

Click here for a November 9, 2005 press release on data security bills that would take us backwards in consumer protections.

Click here for a July 21, 2005 press release on data security bill introduction.

Click here for a June 31, 2005 press release on the introduction of H.R. 3140, the "Consumer Data Security and Notification Act of 2005".

The Federal Trade Commission (FTC) has a website that covers a variety of issues relating to identity theft. Click here to go to the FTC Identity Theft website.  The FTC also has information for veterans in response to the theft of data.  Click here to go to the FTC Veterans Affairs Data Security website.