A subcommittee of the House Energy and Commerce Committee has approved a bill that would mandate businesses to inform consumers about personal data breaches, National Journal reported Wednesday.
Brendan Sasso writes the Data Security and Breach Notification Act, sponsored by Reps. Marsha Blackburn (R-Tenn.) and Peter Welch (D-Vt.), goes next to the full committee for consideration.
“I believe that by focusing on how the criminals make their money, we can work together and achieve a workable solution for the millions of Americans impacted by identity theft and financial fraud,” Rep. Michael Burgess (R-Texas), chairman of the House Energy and Commerce subcommittee on commerce, manufacturing and trade, told the publication.
The legislation would also give the Federal Trade Commission the authority to require commercial firms adopt data security protection measures and impose penalties for violation of rules.
According to the report, most Democrat members of the subcommittee think the bill provides a narrow definition of personal information.