Friday, March 30, 2007

Minnesota: Retailers, Credit Firms Spar Over Data Theft

Via The Minneapolis-St. Paul Business Journal.

Financial institutions and retailers are squaring off over a bill that would prohibit retailers from storing customers' credit-card security information. If it becomes law, retailers also would be financially liable if that information is stolen.

The Plastic Card Security Act rides a wave of legislation aimed at consumer protection, ranging from predatory mortgage lending to gift-card policies. It expands upon a law passed two years ago that requires financial companies to inform customers following security breaches.

Financial institutions say the bill simply holds retailers accountable for security breaches they cause. Retailers counter that credit-card companies already prohibit the retention of security information and that the bill unfairly blames retailers for security problems.

More here.

(Props, Pogo Was Right.)


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