Republican draft bill would tighten rules for finance firms using customer information
Summary
While the push for a federal privacy law has had many stops and starts in the past, the new text provided a renewed spark behind the effort as it included compromises on key issues that had previously stalled talks. The draft aims to update a targeted part of the law and broaden it so it would remain relevant even in the face of further innovation, according to a senior Republican staffer for the Financial Services Committee not authorized to speak on the record. In addition, it would expand the definition of personally identifiable nonpublic information subject to the law and companies covered by the bill would have to give consumers the ability to opt out of data collection if it isnt necessary to provide service. The draft bill allows for federal agencies to create rules that take into consideration the potentially higher burden of compliance on smaller firms. "This proposal will modernize the current framework to better align with evolving technology and protect against the misuse or overuse of consumers personal information," McHenry said in a statement.