In Calif., Consumer Data Protection Bill Gets Vetoed

Oct. 15, 2007
Bill would have put more of onus on retailers and banks for credit information security

The California Consumer Data Protection Act (AB 779), a bill which would have specified requirements for retailers in terms of protection of consumer data and notification of losses, failed this weekend. Governor Arnold Schwarzenegger vetoed the bill on Saturday.

The bill would have required California retailers to follow data security standards for protection of credit and debit card information, and would have provided notice to consumers about which retailers lost their card information, as well as what information was lost. The bill also would have placed the costs of notification and replacement of cards on the retailers.

AB 779 was authored by California's Assemblyman Dave Jones of the 9th district and was sponsored by the California Credit Union League (CCUL), a trade association for the credit unions.

The CCUL's president Bill Cheney called the veto "disappointing news for consumers throughout California," and the organization credited the veto on heavy opposition from special interests in the retail and banking industry.