Feeds

US moves forward on data privacy

Draft law heads for full Senate hearing

Next gen security for virtualised datacentres

A draft US law to increase the security and privacy of personal information held by companies took a step forward last week, when it was approved by the influential Senate Judiciary Committee. The bill includes a duty to disclose security breaches.

The draft Personal Data Privacy and Security Act of 2005 will now move forward to a full Senate hearing.

The bill, sponsored by Senators Arlen Specter and Patrick Leahy, will ensure that companies with databases containing personal information on more than 10,000 US citizens establish and implement data privacy and security programs and vet third-party contractors hired to process data.

Under the bill, data brokers will generally be required to let individuals know what information is held about them and, where appropriate, allow individuals to correct demonstrated inaccuracies. They will also be obliged to notify law enforcement agencies, consumers and credit reporting agencies when digitised sensitive personal data has been compromised.

The bill tackles the question of Government databases run by private contractors, requiring an evaluation of potential contractors involved in handling personal data; an audit of commercial data brokers hired for projects involving personal data; and a privacy impact assessment on the use of commercial databases by federal departments.

Penalties should be included in Government contracts for failure to protect data privacy and security, according to the draft.

The bill also sets out stiff monetary penalties for failing to provide privacy and security protections and notices of security breaches, and toughens criminal penalties for those who infiltrate systems to compromise personal data.

It also imposes a criminal penalty in the cases were there is intentional and wilful concealment of a security breach known to require notice.

"This bill will ensure that our laws keep pace with technology," said Senator Leahy after the Committee vote. "In this information-saturated age, the use of personal data has significant consequences for every American. People have lost jobs, mortgages and control over their credit and identities because personal information has been mishandled or listed incorrectly."

The bill is not the only data security legislation to be discussed in Congress at present. The Senate Commerce Committee recently approved the Identity Theft Protection Act, while the Data Accountability and Trust Act is still at the Committee stage in the House of Representatives.

The raft of legislation is a result of growing public concern arising from serious data breaches over the past year - including attacks on data brokers LexisNexis and ChoicePoint.

See: The draft Personal Data Privacy and Security Act of 2005 (S.1789) (63-page / 119KB PDF)

Copyright © 2005, OUT-LAW.com

OUT-LAW.COM is part of international law firm Pinsent Masons.

The essential guide to IT transformation

More from The Register

next story
Goog says patch⁵⁰ your Chrome
64-bit browser loads cat vids FIFTEEN PERCENT faster!
Chinese hackers spied on investigators of Flight MH370 - report
Classified data on flight's disappearance pinched
NIST to sysadmins: clean up your SSH mess
Too many keys, too badly managed
Attack flogged through shiny-clicky social media buttons
66,000 users popped by malicious Flash fudging add-on
New twist as rogue antivirus enters death throes
That's not the website you're looking for
ISIS terror fanatics invade Diaspora after Twitter blockade
Nothing we can do to stop them, says decentralized network
prev story

Whitepapers

A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.