| For Immediate Release | For more information contact: |
| February 28, 2000 | Lindsay Sander (651-297- 5600) |
ST. PAUL Members of the House Commerce Committee have approved a measure to further protect private information from being sold to other institutions without the consumer's knowledge. Rep. Mark Buesgens, R-Jordan and author of the bill, said everyone should have a reasonable expectation of consumer data privacy.
"Consumers should not have to think about protecting their privacy when signing documents or releasing private information to companies," said Rep. Buesgens. "People should have the expectation that whatever information they give out remains private, period."
Buesgens' legislation was prompted by recent action taken by Congress. Under the Federal Gramm-Leach-Bliley Financial Services Modernization Act, new data privacy requirements are required of financial institutions. Those new requirements require financial institutions to disclose to their consumers their data privacy policies and offer their consumers an "opt-out" option, allowing them to be excluded from information being sold to other companies.
"The Gramm-Leach-Bliley Act is a good step in the protection of consumer rights," Rep. Buesgens continued. "However, the Act fails to standardize any opt-out feature for consumers to look for and easily recognize. This bill would create a convenient method for consumers to exercise their rights to privacy and protection against their private data being released."
The proposed legislation provides consumers and financial institutions with a convenient, easy to use method by which they can opt-out of disclosure of personal data to nonaffiliated companies. The legislation also enacts into state law that financial institutions must comply with federal law and provides additional state penalties for those institutions found not to be compliant with the federal law.
"I have talked with many people from the banking industry and our smaller community banks about this issue," Buesgens continued. "I think we are all in agreement that this is a proactive step, and a fair compromise, for consumers and financial institutions throughout the state."
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