Privacy and Security of Personal Information Emily Hackett, Executive Director Voice: Cell:

Internet Alliance Members

Why State Relations? States act first. They are nimble and can move quickly. California law passes notice legislation in 2002 well before the ChoicePoint breach. Congress is sluggish. Bills have been pending in the last two Congresses..

Your Hair is on Fire

Security Breach “Security breach is the number one Internet and information industry issue in the states this year.”

Public Databases are a Target for Reform? March 22, 2005 Hackers Steal Personal Information of 59,000 People Affiliated with California University

Lawmakers Respond: Security Breach Bills Pending in the States in 2005

Security Breach: California California law passes notice legislation in 2003 before the ChoicePoint breach. Companies must notify customers directly or via a notice on their Website if credit card information or other sensitive customer data has been compromised. Failure to disclose will allow California residents to sue offending companies.

Security Breach Bills Pending 1.California Model (SB 1386/Ch. 915) - 39 bills in 19 states. 2.More restrictive or more broadly defined than California - 27 bills pending in 14 states. 3.State Government – 6 bills pending in 5 states.

Good Uses of Open Information: Instant credit and loans Cheaper interest rates More accurate, informative investing Access to online bank accounts More government accountability

Federal Reserve Board Chairman Alan Greenspan says: A critical component of our ever more finely hewn competitive market system has been the plethora of information on the characteristics of customers both businesses and individuals. The free-flow of information allows the market to adjust to meet consumers' needs. Market participants are able to detect and to respond to finely calibrated nuances in consumer demand. Avoid legislative or regulatory solutions that artificially shape markets and influence behavior, especially when information technology is moving at a pace that renders previous regimes obsolete at an increasingly rapid pace. The market will respond to the needs of consumers for greater privacy protection without legislation/regulation.

Emily Hackett, Industrious political woman Voice: Cell: