FTC Seeks Comment on Data Security and Privacy Rules

Last week, the Federal Trade Commission (FTC) announced that it is seeking comments on proposed amendments to rules dealing with privacy and security of consumer information held by financial institutions. The two rules in question are the Safeguards Rule, which relates to information security programs, and the Privacy Rule, which relates to how the information is used.

Andrew Smith, Director of the FTC’s Bureau of Consumer Protection, states:

We are proposing to amend our data security rules for financial institutions to better protect consumers and provide more certainty for business. While our original groundbreaking Safeguards Rule from 2003 has served consumers well, the proposed changes are informed by the FTC’s almost 20 years of enforcement experience. It also shows that, where we have rulemaking authority, we will exercise it as necessary to keep up with marketplace trends and respond to technological developments.

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