Home California Rep. Jerry McNerney Sponsors Bipartisan Bill to Protect Online Consumer Privacy

Rep. Jerry McNerney Sponsors Bipartisan Bill to Protect Online Consumer Privacy

by ECT

Washington, DC – In honor of Data Privacy Day, Rep. Jerry McNerney (CA-09) this week joined a bipartisan group of his colleagues in introducing H.R. 580, the Data Accountability and Trust Act (DATA).

The DATA Act requires commercial entities that own or possess any personal information of consumers to implement effective information security policies and procedures to safeguard that information. Additional provisions in the law would require these entities to notify individual consumers, as well as the Federal Trade Commission, following consumer data breaches and when personal information is accessed or acquired by unauthorized persons.

“Consumers need to feel confident that their information is secure when they use the internet for things like shopping, paying their bills, or booking travel. I’m proud to sponsor this bill as an important step towards ensuring that businesses are taking action to protect our personal information, and keep us informed when that information falls into the wrong hands.”

Personal information is defined as an individual’s first name or initial and last name, or address, or phone number in combination with (i) a social security number; (ii) driver’s license, passport, military ID number or similar government document number; or (iii) a financial account number, credit or debit card number and any required security or access code or password for an individual’s financial account.

Recent, massive data breaches and cybercriminal attacks on firms and commercial networks and databases have enormously impacted consumers, consumer confidence and the economy. Rep. McNerney serves on the House Energy & Commerce Committee, which recently announced that there would be a series of hearings throughout the coming year to examine these numerous and increasing threats. The Energy & Commerce Committee is the House committee with primary jurisdiction over interstate commerce, consumer protection and trade matters.

The Committee is also primarily responsible for authorizing and overseeing the activities of the Federal Trade Commission. Under the DATA Act, the Commission would be authorized to adopt regulations that spell out appropriate information, security policies and procedures and to take enforcement actions and assess civil penalties up to $5 million for violations of, either the law’s information security policy and procedure or its breach notification requirements, along with state attorneys general against violators under the law.

Joining Rep. McNerney as sponsors of the bill are Reps. Bobby L. Rush (D-Ill.) and Joe Barton (R-Texas) along with U.S. Reps. Dan Lipinski (D-Ill.), David Cicilline (D-R.I.)

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