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." ®

The Power of One Infographic

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile 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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.