FTC Calls for Greater Authority over Data Security
The FTC recently testified before the Senate Committee on Commerce, Science and Transportation, where it called for data security legislation to address the recent increase of data security breaches. The FTC’s testimony focused on its existing data security efforts in the area, such as the 50 data security cases it settled, as well as its consumer education programs. The FTC also asked Congress to strengthen its authority over data security standards, specifically mentioning the ability to impose civil penalties. Currently, the FTC has limited authority to levy civil penalties for data security.
The FTC has been critical of the patchwork of federal and state privacy and data security laws. Stronger FTC authority can potentially impact any prepaid company collecting and/or retaining personal data, either at the point of sale or on the back end.
Stronger FTC authority potentially can affect any retailer, processor or prepaid company collecting and/or retaining personal data at the point of sale or in back-end operations.