Senate Hears Details of Bill to Regulate Information Brokers

Senate hears details of bill to regulate information brokers

WASHINGTON, D.C. - Citing the latest revelation about information brokers losing personal records on U.S. citizens, Sen. Bill Nelson today unveiled before the Senate a bill that for the first time would regulate companies that collect and sell millions of records on virtually every citizen.

Nelson's bill is the centerpiece of a growing movement in Congress to protect citizens' names, addresses, social security and driver license numbers, as well as their personal medical and financial information. Sens. Byron Dorgan of North Dakota, and John Kerry of Massachusetts, joined Nelson Wednesday in demanding a Commerce Committee inquiry into lapses by companies that buy and sell personal data.. Sens. Patrick Leahy, of Vermont, Dianne Feinstein, of California and Charles Schumer, of New York, pushed for a Judiciary Committee hearing, while Jon Corzine, of New Jersey, wants a probe by the Banking Committee.

On the Senate floor Wednesday, Nelson detailed his bill to have the government regulate information brokers the same way it does companies that handle medical and financial records. He cited three recent instances in which consumers' information was stolen or lost.

The latest privacy breach, publicized as Nelson spoke, involved hackers infiltrating the Boca Raton, Florida-based Seisint company and accessing information on 32,000 U.S. citizens in the personal records database of the widely used legal and business information service, LexisNexis.

"Here we have another 32,000 U.S. citizens who could be victims of identity theft," Nelson told the Senate. "Under present law there's no protection. Something's got to be done, or none of us will have any privacy. What's it going to take to spur Congress into action?"

In just the past month, several major companies have revealed that thieves or hackers obtained hundreds of thousands of files on consumers containing names, addresses, Social Security numbers and other personal information.

ChoicePoint Inc., one of the largest sellers of private consumer data, said an identity-theft ring fraudulently gained access to its databases, compromising the personal information of about 145,000 consumers. That includes 10,000 who live in Florida.

In another case, Bank of America said some computer tapes containing federal government charge card account information were lost during shipment. The bank said 1.2 million people could be affected, including Nelson and 59 other U.S. senators.

And on Wednesday, the Associated Press reported that hackers accessed information on 32,000 Americans from a database containing information on LexisNexis' customers, and that the matter was being investigated by staff and U.S. law enforcement authorities.

Nelson told the Senate the cases prove there needs to be federal regulation of information brokers, and that Americans need to have more control over their personal data.

His bill would require the Federal Trade Commission to pass regulations giving consumers control over their personal information. People would have the right to find out what files information brokers keep about them; and, to be able to promptly correct inaccurate information. They also would be allowed to find out the names of those who have asked for copies of their personal information.

Additionally, Nelson's bill would require the FTC to set standards information brokers must use to protect the privacy of the billions of consumer records in their possession.

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