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Last week, Reps. Randy Neugebauer (R-TX) and John Carney (D-DE) introduced their data security and breach bill to the pleasure of the financial services industry.

The bill is similar to that put forth by Senators Tom Carper (D-DE) and Roy Blunt (R-MO). It calls for the creation of breach notification standards and requires that entities that handle sensitive information (like retailers and merchants) to be held to data security standards similar to that of financial institutions.

Retailers and banks have long argued over the need for “more stringent data security standards for non-financial institutions, with retailers fighting back against financial groups’ push to hold them to Gramm-Leach-Bliley like standards.”

A number of financial organizations including the American Bankers Association, The Clearing House,  the Consumer Bankers Association, the Credit Union National Association, Financial Services Roundtable, Independent Community Bankers of America and the National Association of Federal Credit Unions sent a letter to Neugebauer and Carney thanking them for their work. Additionally, Consumer Bankers Association sent their own separate letter.


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