CONSUMERS UNION URGES CALIFORNIA ASSEMBLYMEMBERS
TO SUPPORT FINANCIAL PRIVACY BILL TODAY

SB 773 Offers Californians Stronger Financial Privacy
Protection Than Weak Federal Law

Sacramento, CA – Consumers Union, the nonprofit publisher of Consumer Reports magazine, is urging members of the California Assembly to support proposed legislation that would protect consumers’ sensitive financial information. SB 773, introduced by Senator Jackie Speier, will provide consumers with better control over whether their personal financial information can be shared or sold by financial institutions with which they do business. A vote on the measure by the Assembly is expected later today.

"California consumers have made it clear that they want more control over whether their personal financial information is shared or sold by financial institutions," said Shelley Curran, Policy Analyst with Consumers Union’s West Coast Regional Office. "This bill provides consumers with the protection they are demanding and should be enacted into law."

SB 773 offers consumers many benefits, including:

• SB 773 gives consumers the right to stop the sharing of financial information with affiliated companies (opt out)
  

Under federal law, consumers have no right to control the use and sharing of their financial information with affiliates of the financial institution with whom they have a business relationship. SB 773 allows consumers to stop the sharing of this information.

• SB 773 requires financial institutions to get a consumer’s affirmative consent (opt-in) before sharing information with third parties
  

This will significantly reduce unwanted marketing as well as the deceptive practices of some financial institutions that result in consumers being charged for products or services without ever giving an outside party their account information

• SB 773 allows financial institutions to enter joint marketing agreements on a limited basis under an opt-out standard
  

Small financial institutions with limited affiliates may choose to enter joint marketing agreements in order to remain competitive with financial institutions that have many affiliates. Under these circumstances, financial institutions may share consumer information with outside financial institutions unless the consumer prevents it.

• Gives the Attorney General enforcement authority for violations of this law
  

Financial institutions that share information negligently will be fined $2,500 per violation with a cap of $500,000 per occurrence. Those who knowingly and willfully violate the law will be fined $2,500 per violation with no cap.

###

Consumers Union, publisher of Consumer Reports magazine, is an independent nonprofit testing, educational and information organization serving only the consumer. We are a comprehensive source of unbiased advice about products and services, personal finance, health, nutrition, and other consumer concerns. Since 1936, our mission has been to test products, inform the public, and protect consumers.