WASHINGTON—A group of trade associations that includes CUNA and NAFCU have told Congress that claims by two trade groups for retailers are an attempt to “shift blame” when it comes to data breaches.
“Recently, you received a letter from the National Retail Federation and the National Association of Convenience Stores making some remarkable claims about data breaches and fraud,” the letter states, before calling upon Congress to “think about the following: while fraud is a major problem affecting nearly all sectors of our economy, arguing about which business sector carries more of the burden is a distraction. What matters most is preventing fraud from harming consumers – your constituents, not shifting blame.”
The letter urges Congress to move forward with data breach legislation and to consider “three common sense principles.” Those principles, according to the six groups that signed the letter:
- A National Data Security and Breach Standard: Strong national data protection and consumer notification standards with effective enforcement provisions must be part of any comprehensive data security regime, the letter states.
- Building on Existing Standards: Congress has already placed robust standards on certain sectors, like healthcare (HIPAA) and banking (GLBA), the letter notes. “These existing standards must be recognized, and can also serve as a model that can be adapted to other sectors where no such standards exist.”
- Shared Responsibility: All parties must share the responsibility, and the costs, for protecting consumers, according to the letter. “The costs of a data breach should ultimately be borne by the entity that incurs the breach. We encourage you to ignore the excuses, attempts to pass blame, and efforts to make this a fight between business sectors. This debate should be about protecting sensitive financial information, ensuring consumers feel confident that their data is secure, whether it’s where they shop or where they bank.”
In addition to CUNA and NAFCU, the letter was signed by the American Bankers Association Consumer Bankers Association, the Financial Services Roundtable, the Independent Community Bankers of America, and The Clearing House.