WASHINGTON-- After a series of data breaches earlier this year, members of Congress raged about the irresponsibility of breached companies and introduced a flurry of bills requiring companies to notify affected customers when data is lost.
Nine months after a breach at
data broker ChoicePoint was announced, Congress has debated a handful of bills, but no data notification bill has passed either the House of Representatives or the Senate. U.S. companies reported more than 60 data breaches between January and September this year, and Congress, as well as a number of state legislatures, responded with dozens of pieces of legislation, many modeled after
a 2003 California law requiring companies to tell affected customers about data breaches.
Despite the outcry over the dozens of breaches this year, most observers say Congress is unlikely to pass a data breach notification bill until sometime in 2006, partly because of growing concerns that most of the bills would take a step backward from existing state laws.
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