Senate Democrats unveil consumer privacy bill

Senior Democrats on the Senate Commerce Committee introduced a bill on Thursday that would require businesses and nonprofits to implement strong security features in the event of a data breach.

Consumer Protection Subcommittee Chairman Sen. Mark Pryor (D-Ark.) and Commerce Chairman Sen. Jay Rockefeller (D-W.Va.) unveiled the Data Breach and Security Notification Act of 2010, which would require entities that collect personal information from consumers to implement "reasonable security policies and procedures" to protect their data.

“Data security breaches can wreak havoc on people’s lives, leading to identity theft and threatening families’ financial stability,” Pryor said. “As more and more of our personal information is collected and stored online and on computers, we need to ensure that the businesses storing this information are keeping it safe and giving us quick warning if it falls into the wrong hands.”

Under the bill, organizations would have to notify every individual impacted by a data breach within 60 days. Affected consumers would be entitled to free consumer credit reports or credit monitoring services for two years and would be given instructions on how to request those services.

“An estimated 9 million Americans have their identities stolen each year, resulting in destroyed credit ratings and legal troubles,” Rockefeller said. “Companies and other entities who collect and maintain data on individuals should keep this information safe and notify consumers if it is compromised. That is what this common sense bill requires.”

Sens. Tom Carper (D-Del.) and Bob Bennett (R-Utah) re-introduced a bill last month that would require companies to notify consumers if their personal information has been breached. The pair have introduced similar legislation in the past but believe the current focus on cybersecurity and the Obama administration's awareness of the growing problem of identity theft make its passage more likely.