Antitrust Law Daily Wrap Up, PRIVACY NEWS: FTC renews support for data security legislation before Senate Commerce Committee, (Mar 26, 2014)

By Linda O’Brien, J.D., LL.M.

The FTC participated in a hearing today by the Senate Committee on Commerce, Science and Transportation regarding protecting personal consumer information from cyber attacks and data breaches.

Testifying on behalf of the Commission, FTC Chairwoman Edith Ramirez reiterated the agency’s call for data security legislation and provided an update on its efforts to protect consumers’ privacy in the face of growing reports of data breaches. In her prepared remarks, Ramirez told lawmakers that the Commission believed Congress should act, particularly in light of the significant data breaches reported over the course of recent months. Data security is of critical importance to consumers, she noted.

The testimony highlighted the Commission’s wide-ranging efforts in the data security arena, including its civil law enforcement authority under specific legislation such as the Fair Credit Reporting Act, Children’s Online Privacy Protection Act, and the Commission’s Safeguards Rule under the Gramm-Leach-Bliley Act. The FTC also enforces the proscription against unfair or deceptive acts or practices under Section 5 of the FTC Act and noted the Commission’s settlement of 50 data security cases alleging unfair or deceptive practices under the Act.

In addition, the testimony outlined the FTC’s policy initiatives related to data security issues, including workshops, public forums, seminars, and reports on a wide variety of topics that affect the security of consumers’ personal information. The testimony also noted the Commission’s ongoing efforts to educate consumers and provide guidance to businesses about issues related to data security.

In calling for legislation, the Commission’s testimony recommended that Congress strengthen its existing authority governing data security standards, and that it require companies in appropriate circumstances to provide notification to consumers affected by a data breach. Specifically, the testimony supported legislation that would give the Commission the authority to seek civil penalties to help deter unlawful conduct, rulemaking authority under the Administrative Procedures Act, and jurisdiction over non-profit entities, which are not currently subject to FTC oversight.

“The Commission is here today to reiterate its longstanding, bipartisan call for enactment of a strong federal data security and breach notification law,” said Ramirez. “Never has the need for legislation been greater.”

The Commission vote approving the testimony and its inclusion in the formal record was 4-0.

News: ConsumerProtection Privacy FederalTradeCommissionNews