Companies would be required to notify consumers of data breaches involving their personal information within 30 days of discovering a breach under new federal legislation proposed by President Obama yesterday.
"Almost every state has a different law on this, and it's confusing for consumers, and it's confusing for companies — and it's costly, too, to have to comply to this patchwork of laws," Obama said at the Federal Trade Commission. "Sometimes, folks don't even find out their credit card information has been stolen until they see charges on their bill, and then it's too late."
The legislation also would make it easier for the United States to pursue criminals who buy and sell people's personal and financial information overseas.
Sony, Staples, JPMorgan Chase, Home Depot, Shaw's Supermarkets, Star Market, Tufts Health Plan, American Express and Eastern Bank were among companies that reported breaches last year affecting millions of consumers.
"(It's) very reasonable and very important for consumers to get the notice as soon as possible," said Barbara Anthony, former Massachusetts undersecretary of consumer affairs and business regulation, who is now a senior fellow at the Kennedy School's Center for Business and Government.
Under current state law, companies must notify consumers "as soon as practicable and without unreasonable delay." Anthony added it's "not at all unusual for companies to wait weeks and sometimes months before they make the notification."
Obama's speech came as hackers purportedly aligned with the Islamic State militant group breached the Twitter and YouTube accounts of the U.S. Central Command, which oversees U.S. military operations in the Middle East and Central Asia.
Obama is scheduled to unveil legislation giving legal protections from lawsuits to companies that share cybersecurity information with each other and the government.
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