Management / US Senator starts to draft President Obama's cyber security bill
US Senator starts to draft President Obama's cyber security bill
15 January 2015 |
After US President Barack Obama proposed new cyber security legislation to protect consumers, US Senator Bill Nelson has announced plans to file legislation that would require companies to quickly notify consumers when there are data breaches.
Specifically, the bill would make companies, under most circumstances, notify consumers of data breaches within 30 days. It also would direct the Federal Trade Commission (FTC) to develop security standards to help businesses protect consumers’ personal and financial data.
Additionally, the legislation would provide incentives to businesses who adopt new technologies to make consumer data unusable or unreadable if stolen during a breach.
President Obama on Monday called for more stringent privacy protections for consumers and students during a speech at the Federal Trade Commission.
Numerous high profile attacks on companies like Sony and Target have renewed the push for consumer notification requirements.
Nelson says: “How many more consumers will be affected before something is done? Now is the time Congress must act.”
A draft summary of the Data Security and Breach Notification Act of 2015 states the bill has two primary components: a data security mandate and a breach notification mandate.
The bill would direct the FTC to promulgate data security rules for commercial and nonprofit organizations that own or possess data containing “personal information” or those that contract with third parties to maintain such data. Such entities would be required to develop a data security program.
The Commission would be directed to consider the size, nature, and scope of activities; existing state-of-the-art protections for such data; and the costs of implementation, including its effect on small businesses.
For more information on Obama’s proposed cyber security legislation, see our previous story.
Photo © Chris Potter (CC BY 2.0). Cropped.