Dive Brief:
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The recent cyber-breaches at U.S. retailers demonstrate the need to strengthen laws protecting consumers, Senate Banking Committee members said Monday at the first of three hearings on the matter. Target executive VP and CFO John Mulligan will take questions today.
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U.S. Senate Banking Committee members called on retailers to cooperate with a national notification system for data breaches. Consumer advocate and Sen. Elizabeth Warren (D-Mass.) noted that the Federal Trade Commission needs broader enforcement authority in data-breach cases.
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Sen. Mark Kirk (R-Ill.) said he would introduce a bill setting a minimum 25-year sentence for federal data-breach law violations. Sens. Tom Carper (D-Del.), Patrick Leahy, (D-Vt.), have re-introduced data-security bills, and Senate Commerce Committee Chairman Jay Rockefeller, (D-W.Va.) introduced a new bill last month on standards for notifying customers.
Dive Insight:
There is bipartisan agreement on the Hill to rein in cyber-security breaches, bolster authority for the Federal Trade Commission, and crack down on cyber-thieves. While it’s rarely good news for retailers when there is congressional meddling in business, this is one area where clarification and help from the feds could go far in protecting retailers and their customers.