AFSA Letter Calls for Standard on Data Security

AFSA submitted a letter to the Federal Trade Commission (FTC) on June 30 in response to the commission’s hearings on competition and consumer protection in the 21st century. The letter lays out the necessity for a “single, federal, risk-based standard”  for data security.

“Inconsistent state laws regarding data security and the lack of a national standard for businesses that operate across state lines have resulted in uneven consumer protection, as well as significantly higher compliance costs for financial institutions,” Celia Winslow, AFSA Vice President of Legal & Regulatory Affairs wrote. “These compliance costs multiply every time a new state enacts a new—and often very different—data privacy, security and protection law.”

The letter goes on to note that financial services inextricably affects interstate commerce and so a national risk-based model from Congress, enforced on a sliding scale is necessary to ensure consumers are protected and credit remains available to consumers.