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Financial Services Law Insights and Observations

President Obama Proposes New Data Privacy Legislation

Obama Privacy/Cyber Risk & Data Security

Privacy, Cyber Risk & Data Security

On January 12, President Obama announced new privacy initiatives to combat identity theft, enhance consumer security, and improve data privacy online and in the classroom. His main legislative proposals call for (i) a Personal Data Notification & Protection Act, which would specify the obligations that companies have when a consumer’s personal information has been exposed, establish a 30-day notification requirement following a company’s discovery of a data breach, and criminalize illicit overseas trade in identities; (ii) a Consumer Privacy Bill of Rights; and (iii) increased protections for data collected from students.  The President called for Congressional support, saying privacy is not a partisan issue.