House Republicans today unveiled two bills to establish national data privacy standards, including legislation to modernize the Gramm-Leach-Bliley Act, which is the federal law regulating how banks and other financial institutions safeguard customer data.
The SECURE Data Act would establish national privacy and data security standards enforced by the Federal Trade Commission and state attorneys general, according to a summary of the legislation. The legislation would exempt financial institutions and data covered by the GLBA, but a related bill – the GUARD Financial Data Act – would update the 1999 law to account for advances in technology. The GUARD Act also would preempt state laws in the financial activity space. These laws would work in concert to create a national privacy standard for banks to follow rather than the current state and federal patchwork.
The GUARD Act “minimizes data collection and disclosures; allows customers and former customers to request access to their financial data held by a financial institution; allows former customers of a financial institution to request deletion of their data; and requires a financial institution to receive a consumer’s affirmative opt-in consent before sensitive personal information can be disclosed,” according to a joint statement by House Financial Services Committee Chairman French Hill (R-Ark.) and the other committee GOP leaders.
“This effort represents a significant step to strengthen consumer protections and ensure Americans have control over their financial data,” they added. “We look forward to continuing to work together as these measures progress through the legislative process.”
