Can ChoicePoint be a TurningPoint? Posted by mitcka at 04/12/05 06:25 PM

Choicepoint, the company that compiles and sells private consumer data including Social Security numbers, property records, bank accounts and criminal histories, has been hit by dozens of lawsuits as its stock has dropped, according to Saturday's Palm Beach Post.

After a security breach resulted in the theft of 145,000 people's personal information, the company--and the entire data aggregation industry--has had to face some tough questions about its security standards.

Senator Diane Feinstein yesterday introduced federal legislation called (somewhat numbingly) the Notification of Risk to Personal Data Act (S. 751). The bill does not address security directly, but does require anyone whose information may have been stolen to be notified of that. I'll put up a link as soon as this bill's posted.

According to the Post:

Initially, ChoicePoint — which has a large database operation in Boca Raton — planned to disclose the electronic data breaches only to consumers living in California, which has a law requiring any company operating there to disclose when personal information is lost.

But the company, which sells consumer information to law enforcement agencies, employers, media outlets and other businesses, quickly felt pressured to apply the California standard to all affected individuals, regardless of where they lived.

If the good Senator can get her bill passed, at least this simple courtesy will no longer be at the company's discretion! To help, visit our Financial Privacy Now campaign site.

comments (1)

1 Posted by alevin at 04/12/05 08:22 PM

Hello, Kathy and Consumers Union Bloggers.

Does Consumers Union have comparative analysis of the various federal and state bills responding to Choicepoint. If so, links would be most welcome.

Thanks,

- Adina