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.