Antitrust Law Daily Wrap Up, PRIVACY NEWS: Lawmakers ask FTC, CFPB for information on post-breach protections for consumers, (Jul 10, 2015)
Organizations Mentioned:Consumer Financial Protection Bureau | Federal Trade Commission
By Brian Hammond, TRDaily
Leaders of the House Energy and Commerce Committee have written to the Federal Trade Commission and the Consumer Financial Protection Bureau, asking questions about the protections available to consumers after data breaches.
The July 9 letters to FTC Chairwoman Edith Ramirez and CFPC Director Richard Cordray were signed by Energy and Commerce Committee Chairman Fred Upton (R., Mich.) and ranking member Frank Pallone, Jr. (D., N.J.); Commerce, Manufacturing, and Trade subcommittee Chairman Michael Burgess (R., Texas) and subcommittee ranking member Jan Schakowsky (D., Ill.); and Oversight and Investigations subcommittee Chairman Tim Murphy (R., Penn.) and ranking member Diana DeGette (D., Colo.).
The lawmakers said they were concerned about the "efficacy of measures to protect consumers whose personal information has been compromised by a breach." For example, they asked whether 12 months of free credit monitoring is sufficient, and whether consumers are "sufficiently aware of the options available to them post-breach and whether those options are effective in preventing further financial consequences."
The letters also note that consumers can freeze credit as a post-breach protection, which enables them to lock access to their credit from anyone attempting to open new lines of credit in their names. But consumers must request a credit freeze separately from each of the three credit bureaus and track separate information for each bureau to unlock their credit, it adds.
“It may be possible to streamline the process to reduce fraud following a breach," they wrote. "Therefore, we are writing to learn more about consumer-friendly post-breach protections, including whether the process of activating and inactivating a credit freeze can be made more efficient and less costly."
The lawmakers asked for a briefing to committee staff on several questions related to credit freeze options available to consumers, as well as "other methods to improve post-breach protections no later than July 20."
News: Privacy