Antitrust Law Daily Wrap Up, PRIVACY NEWS: Senate bill aims to protect consumers from identity theft, security breaches, misuse of personal information, (Jan 10, 2014)

By John W. Arden, J.D., LL.M.

Federal legislation to prevent identity theft, ensure online privacy, require notice of security breaches, and protect against misuse of personally identifiable information was introduced yesterday in the proposed Personal Data Privacy and Security Act (S. 1897).

In reintroducing this bill, Senator Patrick Leahy (D, Vt.) called the recent Target Corporation data breach, affecting 40 million consumers, “a reminder that developing a comprehensive national strategy to protect data privacy and cybersecurity remains one of the most challenging and important issues facing our nation.” The Personal Data Privacy and Security Act would help meet this challenge by better protecting Americans from the “growing threats of data breaches and identity theft,” Leahy said.

Originally introduced nine years ago, the legislation has been reported favorably by the Judiciary Committee but has “languished” on the Senate calendar, the Senator noted. “In the meantime, the dangers to Americans’ privacy, economic prosperity and national security posed by data breaches have not gone away.”

Specifically, the proposal would require companies that have databases of sensitive personal information to establish and implement data privacy and security programs; would establish a single nationwide standard for data breach notification; and would require notice to consumers when sensitive information has been compromised. The bill would provide criminal penalties for intentional and willful concealment of a data breach causing economic damage to consumers; update the Computer Fraud and Abuse Act to include computer hacking and conspiracy to commit computer hacking; and specifically addresses trafficking in passwords, organized criminal activity in connection with unauthorized access to personally identifiable information, and damage to critical infrastructure computers. The U.S. Attorney General and the Federal Trade Commission would be authorized to enforce civil violations of the security breach notification provision.

The legislation is co-sponsored by Senators Charles Schumer (D, N.Y.), Al Franken (D, Minn.), and Richard Blumenthal (D, Conn.).

News: Privacy