US Moves Forward on Data Privacy

Draft law heads for full Senate hearing

By OUT-LAW.COM Published Friday 25th November 2005 14:43 GMT

A draft US law to increase the security and privacy of personal information held by companies took a step forward last week, when it was approved by the influential Senate Judiciary Committee. The bill includes a duty to disclose security breaches.

The draft Personal Data Privacy and Security Act of 2005 will now move forward to a full Senate hearing.

The bill, sponsored by Senators Arlen Specter and Patrick Leahy, will ensure that companies with databases containing personal information on more than 10,000 US citizens establish and implement data privacy and security programs and vet third-party contractors hired to process data.

Under the bill, data brokers will generally be required to let individuals know what information is held about them and, where appropriate, allow individuals to correct demonstrated inaccuracies. They will also be obliged to notify law enforcement agencies, consumers and credit reporting agencies when digitised sensitive personal data has been compromised.

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