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Press Release |
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House Commerce Committee approves measures to let consumers say "no"
to financial firms sharing and selling their information
WASHINGTON, D.C. - Despite heavy opposition from banks, brokerage firms, and insurance companies, the House Commerce Committee today approved privacy measures to allow consumers to say no to financial firms sharing and selling their personal financial information.
By a voice vote, the committee approved a measure offered by Rep. Edward Markey, D-Mass., to ensure consumers' ability to say no to information being shared among business affiliates and outside parties, like telemarketers.
"This is a major step forward for the protection of consumers' privacy," said Mary Griffin, counsel for Consumers Union. "We still have a lot of work to do, with telemarketers and others wreaking havoc with people's personal information. But this action is definitely a step in the right direction. Today's action gives the privacy issue tremendous momentum."
The measure provides that:
· Financial firms have and disclose a privacy policy;
· Consumers be given the opportunity to say no to - or "opt-out" of -- personal information being transferred among financial firms' business affiliates and outside parties, such as telemarketers;
· Consumers have access to their information held by outside companies, as well as the ability to correct the information
However, in order to provide real control to consumers over their information, Congress still needs to make sure:
· Telemarketers and other outside firms not be able to share or profit from consumers' information unless the consumer first gives them permission to do so (an "opt-in"), nor should they be able to sell the information they receive to another party;
· Consumers must have the ability to recover losses in the event these privacy protections are violated;
· Consumers should have access to all personal information, regardless of whether it is held by an affiliate or outside firm.
The privacy debate now moves to the House floor as lawmakers prepare to consider the underlying bill designed to update the laws that govern financial services. Consumers Union will work to build on today's progress to make sure that consumers get the privacy protections that they demand and deserve.
