Originally published December 3 2005
Experts predict no data security bill will pass Congress in 2005
by Mike Adams, the Health Ranger, NaturalNews Editor
As states like California pass vigorous legislation to protect citizens whose security information has been compromised, the federal government seems poised to wait until next year to take actions that would protect American consumers from identity theft and other dangers.
After the nationwide uproar when ChoicePoint admitted it sold 145,000 dossiers to Nigerian identity thieves, 20 states followed California's lead and passed laws requiring companies to notify citizens when their data had been compromised.
Now, companies are already acting as if the country had a national notification law, said Gail Hillebrand, a senior attorney at Consumers Union.
"I would rather see Congress fail to act than pass a weak federal bill that gives less notice than consumers are already getting due to stronger state laws," Hillebrand said.
Chris Hoofnagle, director of the Electronic Privacy Information Center West, echoed Hillebrand's assessment, adding that as new state laws go into effect in the beginning of 2006, federal lawmakers will face pressure from states that don't want their legislation overridden by Congress.
In particular, Hoofnagle and Hillebrand point to portions of several congressional bills that would require notification only if the company determines it is likely that identity theft will happen.
By contrast, California requires businesses or agencies to notify anyone whose name and Social Security number, or credit card number, was acquired by an unauthorized person.
Though banks and data brokers have long opposed federal privacy legislation in favor of self-regulation, both industries are now asking Congress to step in to create a single national standard and cap the limits on their liability in case of a breach.
Also at issue in the debate are state laws that allow consumers to pre-emptively "freeze" their credit reports so identity thieves cannot open new accounts without knowing a security code.
For instance, New Jersey's new law, which goes into effect Jan. 1, allows residents to freeze their credit for free and then pay a $5 dollar fee to each credit bureau to open the report when they apply for a line of credit.
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