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NEW U.S. SENATE BILL COULD PENALIZE COMPANIES FOR PRIVACY BREACHES

Source: VentureBeat

Posted on September 30, 2011

A new bill in the U.S. Senate would punish companies that carelessly experience security breaches that compromise consumer privacy, reports the New York Times.

The bill, introduced this month, and called the Personal Data Protection and Breach Accountability Act of 2011, aims to protect a citizens' personal information online.

Democratic Connecticut senator Richard Blumenthal, who sponsored the bill, said many of the more recent security breaches (like Sony's Playstation Online fiasco) were very preventable.

Only companies that store data online for over 10,000 people would be affected by the bill. If passed, the bill would require those companies to follow a set of guidelines to ensure all the personal data they store is sufficiently protected. Those that don't follow the guidelines would be at risk of racking up hefty fines from the government.

Should the bill pass, customers who entrust their personal information online would be able to sue companies in charge of that data in the event of a preventable security breach.




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