Senate Panel Reviews FTC Data Security Enforcement Powers

The recent Equifax Inc data breach prompted Sens at a Sept 26 hearing to question whether the Federal Trade Commission has the proper authority to effectively enforce data security standards. How to better define the Federal Trade Commission’s authority to oversee corporate data security is a long-standing issue, and U.S. credit bureau Equifax’s breach compromising the personal data of 143 million consumers has, at least for the moment, further raised interest in the subject.

The Senate Commerce Subcommittee on Consumer Protection, Product Safety, Insurance, and Data Security heard testimony on proposals to improve the FTC’s handling of consumer protection issues, including its role in overseeing data security efforts. Subcommittee Chairman Jerry Moran (R-KS) said that there will be a full committee hearing on the Equifax data breach in “mid-October.” Subcommittee Ranking Member Richard Blumenthal (D-CT) said that he will soon introduce legislation to allow the FTC to investigate any data breaches, exercise oversight, and issue penalties.