FTC RECOMMENDS TO CONGRESS TO PASS BREACH NOTIFICATION LEGISLATION
In a recent hearing before the House Committee on Energy and Commerce, Subcommittee on Commerce, Manufacturing, and Trade, the Federal Trade Commission (FTC) testified that Congress should enact breach notification legislation. “Data security is of critical importance,” said David Vladeck, Director of the FTC’s Bureau of Consumer Protection. “If companies do not protect the personal information they collect and store, that information could fall into the wrong hands, resulting in fraud and other harm, and consumers could lose confidence in the marketplace.”
The testimony comes shortly after the FTC settled two data breach cases with Ceridian Corporation and Lookout Services, Inc. The settlement orders bar future misrepresentations from Ceridian and Lookout Services, require them to implement a comprehensive information security program and to obtain independent security audits every other year for 20 years.