September 2010

The Consumer Protection, Product Safety, and Insurance Subcommittee of the Senate Commerce Committee held a hearing Sept 22 on the Data Security and Breach Notification Act.

Commerce Committee Chairman Jay Rockefeller (D-WV) said, "Data breaches plague businesses and organizations, putting millions of consumers at risk. According to the Privacy Rights Clearinghouse, over half a billion data records have been compromised by unauthorized access to consumer databases since 2005. In 2009 alone, there were 498 data breaches involving 222 million sensitive records. The consequences of these breaches are grave: identity theft, depleted savings accounts, ruined credit scores, and trouble getting loans for cars, homes and kids are just some of the effects. Companies and other entities who collect and maintain data on individuals should keep this information safe and notify consumers if it is compromised. That is what this common sense bill requires. I thank Senator Pryor for his leadership on this issue."

Subcommittee Chairman Mark Pyror (D-AK) said, "As the nation's consumer protection agency, the [Federal Trade Commission] is committed to protecting consumer privacy and promoting data security in the private sector. Data security is of critical importance to consumers. If companies do not protect the personal information they collect and store, that information could fall into the wrong hands, resulting in fraud and other harm, and consumers could lose confidence in the marketplace. Accordingly, the Commission has undertaken substantial efforts to promote data security in the private sector through law enforcement, education, and policy initiatives."

"In today's connected world—where data is everywhere and the perimeter can be anywhere—protecting information assets from sophisticated hacking techniques is an extremely tough challenge. Driven by the rising tide of organized cyber-crime, targeted attacks are increasingly aimed at stealing information for the purpose of identity theft. More than 90 percent of records breached in 2008 involved groups identified by law enforcement as organized crime. 18 Such attacks are often automated by using malicious code that can penetrate into an organization undetected and export data to remote hacker sites. TechAmerica believes that the United States urgently needs to pass a national data breach law. We urge the Committee to expeditiously approve S. 3742, the Data Security and Breach Notification Act," said Maneesha Mithal, Associate Director, Division of Privacy and Identity Protection, Bureau of Consumer Protection, Federal Trade Commission.

President Barack Obama announced his intent to nominate Gene L. Dodaro, Comptroller General of the United States, Government Accountability Office.

Dodaro has served as Acting Comptroller General of the United States and head of the Government Accountability Office (GAO) since March of 2008. Before his tenure as Acting Comptroller General, Dodaro served as GAO's Chief Operating Officer, and, before that, as Assistant Comptroller General for GAO's largest unit, the Accounting and Information Management Division. A 37-year veteran of GAO who rose through the agency ranks, Dodaro is a fellow of the National Academy of Public Administration, a member of the Association of Government Accountants, and has received recognition from numerous organizations including the National Public Service Award, the Roger W. Jones Award for Executive Leadership and the Arthur S. Fleming Award for Outstanding Individual Performance in the Federal Government. Dodaro graduated from Lycoming College in Williamsport, Pennsylvania.

Netflix closed down a Toronto street Sept 22 and attracted dozens of onlookers for a splashy launch to promote its highly anticipated foray into Canada. Problem is, many of those in the crowd were actors who were paid to be there.

Many of the "extras" on hand were interviewed by journalists, who didn't realize they weren't real consumers interested in the product. As a news conference was kicking off to announce Netflix's service — which uses the Internet to stream unlimited access to thousands of movies and TV shows for $7.99 a month — extras were asked to spill into the street and encouraged to "play types, for example, mothers, film buffs, tech geeks, couch potatoes etc." "Extras are to behave as members of the public, out and about enjoying their day-to-day life, who happen upon a street event for Netflix and stop by to check it out," reads an information sheet handed out to extras. "Extras are to look really excited, particularly if asked by media to do any interviews about the prospect of Netflix in Canada." After word of the ruse spread on Twitter, Netflix apologized and said the extras should not have been talking to reporters.

The Federal Communications Commission is examining whether an animated television show featuring characters created to market Skechers shoes violates rules limiting advertising to children. Campaign for a Commercial-Free Childhood (CCFC) filed a petition with the FCC regarding the show "Zevo-3" set to begin airing on the cable channel Nicktoons on October 11. According to the complaint, the show features three superheroes named Kewl Breeze, Elastika, and Z-Strap, who battle a villain known as Dr. Stankfoot. The FCC is seeking comment on the group's petition; the deadline is October 22. The CCFC argues the characters were created expressly to market specific lines of shoes and said the show should be considered a promotion for Skechers shoes. The law limits cable operators to airing no more than ten and a half minutes of commercial programming per hour on weekdays and 12 minutes on weekends during children's shows. The characters have previously been featured in Skechers TV commercials and comic books.