Senators Pushing for Tougher Data Breach Laws

Senators Pushing for Tougher Data Breach Laws

January 11, 2018         Written By John H. Oldshue

Two Democratic senators, Elizabeth Warren of Massachusetts and Mark Warner of Virginia, have introduced a bill that would give the Federal Trade Commission (FTC) more power to investigate credit reporting agencies and levy fines against agencies that are breached by hackers.

If passed, the FTC can inspect companies, such as TransUnion, Experian, and Equifax, which was breached in 2017, to make sure they have proper security protocols in place. Credit reporting companies that earn more than $7 million a year in the sale of consumer information would have to share details with the FTC about their device management, network security, data encryption, and other cybersecurity practices.

If a breach does occur, the FTC could charge the company at least $100 per affected person. Half of those funds would be used as restitution to the affected consumers.

In the case of the Equifax breach, the company could have been charged at least $14.3 billion under this proposed law. However, since fines would be capped at 50% of the company’s gross annual revenue, Equifax would have been charged approximately $1.5 billion, according to the senators.

“Our bill imposes massive and mandatory penalties for data breaches at companies like Equifax—and provides robust compensation for affected consumers—which will put money back into peoples’ pockets and help stop these kinds of breaches from happening again,” Warren said in a statement.

The proposed legislation would also charge companies an additional $50 per piece of personally identifiable information for each person, and fines could double if the credit reporting agency did not comply with federal data security standards or provide timely notification of the breach.



The information contained within this article was accurate as of January 11, 2018. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


john-oldshue

About John H. Oldshue

John Oldshue is the creator of LowCards.com. He worked for over 15 years in television and won an Emmy award for his reporting. He covers credit card rate issues for LowCards.com.
View all posts by John H. Oldshue
Featured Low Interest Card
Top Features : 1.25X miles on every purchase; no annual fee; bonus of 20,000 miles once $1,000 is spent in first 3 months
Featured Cash Back Card
Top Features : 1.5% cash back on all purchases; $150 bonus after spending $500 in first 3 months
Featured No Annual Fee Card
Top Features : 2% cash back on purchases: 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Bad Credit Card
Top Features : Perfect credit not required; Reports to major credit bureaus
Featured Fair Credit Card
Top Features : No annual fee; access to higher credit line after making first 5 monthly payments on time
Featured Limited/No Credit
Top Features : No annual fee; reports to major credit bureaus; access to higher credit line after making first 5 monthly payments on time