Feeds

Schwarzenegger terminates data breach bill

Let the foxes guard the hen house

Build a business case: developing custom apps

California Governor Arnold Schwarzenegger vetoed a bill on Saturday designed to give new protections to credit card holders by placing tough limits on the type of payment information retailers can store on their customers. The governor said the bill would have driven up costs for merchants.

Assembly Bill 779 was championed by advocates of consumers and credit card issuers amid the fallout of a massive data breach in which online thieves stole account information belonging to more than 45.6 million people from TJX Companies. TJX was widely criticized for storing more information than necessary and for failing to lock down its network.

The bill, among other things, would have specified the information firms must provide when they experience a data breach and would have required retailers to safeguard data in ways that are more stringent than the current methods spelled out by the Payment Card Industry Data Security Standard. The bill also prohibited the maintaining of "sensitive authentication data subsequent to authorization, even if that data is encrypted."

In vetoing the measure, Schwarzenegger seemed to suggest that consumer information was already adequately safeguarded by the marketplace.

"This industry has the contractual ability to mandate the use of these standards, and is in a superior position to ensure that these standards keep up with changes in technology and the marketplace," he said in a message to members of the California State Assembly. "This measure creates the potential for California law to be in conflict with private sector data security standards." ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.