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Proposed Legislation on Data Accountability

Dec 21 2009, 10:58 AM 

In a move that is aimed at offering more transparency, the US House of Representatives has approved a data accountability bill called the Data Accountability and Trust Act, which could become a law if passed by the Senate.

A few days ago, the House of Representatives passed a legislation that could have far reaching implications for those who deal in data or data brokers. Pending approval by the US Senate, the Data Accountability and Trust Act proposes two important requirements:

That data brokers issue a countrywide notification in the event of specific data breaches; and
That data brokers permit those on their data lists to modify and verify information held about them.

Besides this, the legislation requires data brokers to share details of their security policies with the Federal Trade Commission (FTC). The bill also authorizes the FTC to perform a thorough security audit of the data broker, should a data breach occur.

As far as the countrywide notice of breach is concerned, data brokers will be exempt from issuing this notice if they find that there has been no significant risk posed to consumers as a result of the breach.

For consumers, the bill opens the door to more control and visibility over personal information held by data brokers. However, for marketers, it could mean more disclosure of information to the public and creating processes, systems and controls that make this possible without compromising the quality of data acquired.

Will it significantly affect the email marketing industry? Only time will tell. Until then, keep watching this space.

Source: http://www.eweek.com/c/a/Government-IT/House-Passes-Data-Accountability-Bill-810221/

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