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Gridlock In Action: Retailers Demand New Regulations To Protect Consumers
chicksdaddy writes: How bad is the gridlock in Washington D.C.? So bad that the nation's retailers are calling for federal legislation on cyber security and data protection to protect consumer information — even though they would bear the brunt of whatever legislation is passed. The Security Ledger notes that groups representing many of the nation's retailers sent a letter (PDF) to Congressional leaders last week urging them to pass federal data protection legislation that sets clear rules for businesses serving consumers.
"The recent spate of news stories about data security incidents raises concerns for all American consumers and for the businesses with which they frequently interact," the letter reads. "A single federal law applying to all breached entities would ensure clear, concise and consistent notices to all affected consumers regardless of where they live or where the breach occurs."
Retailers would likely bear the brunt of a new federal data protection law. The motivation for pushing for one anyway may be simplicity. Currently, there are 47 different state-based security breach notification laws, as well as laws in the District of Columbia and Guam. There is broad, bi-partisan agreement on the need for a data breach and consumer protection law. However, small differences of opinion on its scope and provisions, exacerbated by political gridlock in Congress since 2010 have combined to stay the federal government's hand. Meanwhile, reader schwit1 points out that banks are now starting to demand that retailers pay for all the financial damage their security breaches cause.
"The recent spate of news stories about data security incidents raises concerns for all American consumers and for the businesses with which they frequently interact," the letter reads. "A single federal law applying to all breached entities would ensure clear, concise and consistent notices to all affected consumers regardless of where they live or where the breach occurs."
Retailers would likely bear the brunt of a new federal data protection law. The motivation for pushing for one anyway may be simplicity. Currently, there are 47 different state-based security breach notification laws, as well as laws in the District of Columbia and Guam. There is broad, bi-partisan agreement on the need for a data breach and consumer protection law. However, small differences of opinion on its scope and provisions, exacerbated by political gridlock in Congress since 2010 have combined to stay the federal government's hand. Meanwhile, reader schwit1 points out that banks are now starting to demand that retailers pay for all the financial damage their security breaches cause.
I think this is just CYA. The government will set a minimum standard of security which the retailers will set as their default level and that way when a breach happens they can say, well we followed the government mandates, we should not be sued. This is not for the customers, it is for the retailers.
In reality they should be securing their systems to the best of their ability.
When you cant win, ad hominem.
>> gridlock...nation's retailers
Er...lobbiest fails to do job, so panic?
>> they would bear the brunt of whatever legislation is passed....there are 47 different state-based security breach notification laws
In other words, they want a single Federal law to replace all the state laws, which would do two things: 1) allow them to concentrate their efforts on watering down the federal law 2) take the ability for people to collect damages against it out of state courts and 3) reduce their notification costs because they would only do the bare minimum required by the federal law (e.g., filing it in a basement drawer marked with "beware the leopard"). I see no "brunt" here. (IANAL)
There is a less pessimistic translation: "Please pass a law so that our competitors are forced to spend money securing their systems, so that we can justify doing so without fear of being out-competed."
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