Tech Giants Plan to Push for Data-Privacy Laws

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Microsoft, HP and other high-tech companies are preparing to push for data-privacy legislation next year to replace what they consider an outdated patchwork of state and federal laws.
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December 13, 2006 (Press Release) -- Microsoft Corp. (MSFT), Hewlett-Packard Co. (HPQ) and other high-tech companies are preparing to push for data-privacy legislation next year to replace what they consider an outdated patchwork of state and federal laws that are inconsistent and burdensome.

"We think the time has come for a comprehensive privacy bill that would protect consumers' personal information while still allowing the flow of information needed for commerce online," Ira Rubinstein, a Microsoft lawyer, said this week.

Several recent high-profile breaches of consumers' personal information have made consideration of privacy proposals more likely, Rubinstein said.

The Social Security numbers and medical data of approximately 930,000 people were compromised this June, for example, when computer equipment belonging to insurance provider American International Group Inc. (AIG) was stolen.

Microsoft, HP and eBay Inc. (EBAY) earlier this year formed the Consumer Privacy Legislative Forum to lobby for privacy legislation. Google Inc. (GOOG), Intel Corp. (INTC), Oracle Corp. (ORCL) and other companies later joined.

The forum supports legislation that would set standards for what notice must be given to consumers about personal information collected on them and how it will be used, Rubinstein said. The companies are aiming for a law that would override any existing state laws and standardize privacy rules across industries.

The group's efforts will likely face some opposition, however.

Although high-tech companies have been seeking comprehensive federal privacy legislation, Congress has focused on the steps companies should take to protect data and when companies should notify consumers of data security breaches.

But several data security bills failed to pass during the soon-to-end congressional session, largely because of jurisdictional struggles between different congressional committees, said Steve Adamske, spokesman for Rep. Barney Frank, D-Mass.

Frank, incoming chairman of the House Financial Services Committee, said Wednesday that he plans to consider the issue of data security next year.

To avoid a repeat of the jurisdictional struggle, Frank says he plans to propose to incoming House Speaker Nancy Pelosi that she appoint a task force of members from committees with oversight on privacy matters to work on the issue.

Source: http://www.foxnews.com/


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