There’s a bill in town and company CEOs will be in serious trouble for non-compliance.
In the wake of multifarious data breaches such as the Facebook-Cambridge Analytica data sharing scandal that was exposed almost six months ago and the massive Equifax breach among others, only indicate that consumer data is no longer secured and protected.
Sen. Ron Wyden started promulgating for a draft discussion on Thursday that will compel Silicon Valley firms that generated billions for marketing consumer data. The “Consumer Data Protection Act” will employ extensive reforms at firms such as Facebook and Google. It will enable consumers to totally opt-out from getting their data sold to third-parties for marketing purposes. At the same time, the act will completely further the Federal Trade Commission’s (FTC) power to shadow privacy perpetrators.
Sen. Wyden’s privacy bill proposes a provision for companies with revenues that go beyond $1 billion a year, or those who keep 50 million consumer data must comply to the government “annual data protection reports”. The companies must summarize the standards adopted to guarantee the security of all gathered personal data. The bill was motivated by the Sarbanes-Oxley Act that mandates executive officers to authorize and validate company financial reports. The senator’s proposal will necessitate executives (top and chief) to confirm data protection reports and if they failed to comply, will deal with huge penalties and vacation in prison.
In the event that company executives were not able to fulfill the provision, they would deal with a 20-year sentence in jail along with a fine not exceeding $5 million for misleading the FTC. Executives are not the ones held accountable but companies as well. These liable firms will likewise be fined which could reach 4% of its yearly income. Google, for example, could deal with a fine of approximately $5 billion for a serious violation.
“Today’s economy is a giant vacuum for your personal information. Everything you read, everywhere you go, everything you buy and everyone you talk to is sucked up in a corporation’s database. But individual Americans know far too little about how their data is collected, how it’s used and how it’s shared.,” Sen. Wyden said.
The bill aims to give consumers with options such as not to be followed with every click online. It will also bring back the consumer’s authority to regulate who censors their online activities using litigable “one-stop shop” feature.
Meanwhile, Chipmaker Intel Corp. is looking for a benefactor in Congress to back up its drafted US data privacy bill that will protect companies from penalties. Business organizations need to vouch for to the FTC the strict measures they undertake to protect consumer data.
State and federal officials alike can still oblige companies to revise their consumer data practices and even compensate under the recommendation which the chipmaker manufacturer wrote and began discussing it to Congress members. However, the safeguarding will establish a considerable victory for Silicon Valley tech companies. Recurrent violators might drop protection while company officials who dishonestly verified their conformity are likely to face the perpetrator suit.
Intel gathers only little consumer data, unlike Facebook and Google which are considered big data collectors and belong to the top buyers of the chip company’s profitable computer server chips.