Today (June 12), WBA urged a key state committee to delay and reconsider recommendations which would increase regulation on banks with respect to consumer data.
WBA signed on to a letter sent with a coalition of 10 other business groups to the Wisconsin Department of Agriculture, Trade, and Consumer Protection (DATCP), asking its Data Privacy and Security Advisory Committee (DPSAC) to "weigh the preferences of consumers against the needs of businesses that process personal data.”
“Our concern is that at this point the committee may be heading toward recommendations that—while certainly well intended—may negatively impact businesses and consumers,” the letter states. “We ask that you consider delaying recommendations for highly regulated industries or deferring to industry-specific regulators where appropriate. If action is necessary, ensure it is targeted and consistent with the existing framework.”
The group’s letter identifies three principles for DPSAC to consider and respect when formulating future data privacy and security measures:
- Ensure harmonization between existing regulatory structures and requirements;
- Retain and expand risk-based regulations, which balance consumer expectations with the ability of businesses to effectively operate and innovate; and
- Proceed incrementally so that Wisconsin businesses and consumers have time to adapt and do not suddenly find themselves at a significant disadvantage.
In addition to details around these principles, the letter provides background for the committee members, including brief overviews of existing regulation, including the Fair Credit Reporting Act, HIPPA, the Gramm-Leach-Bliley Act, and Right of Financial Privacy.
DPSAC and business groups across Wisconsin agree on the goal of addressing the legitimate privacy concerns for individuals that have risen with new technology. However, the letter urges DPSAC to adhere to the three principles detailed in the letter in order to ensure Wisconsin develops a coherent and workable data privacy and security scheme that is beneficial for both consumers and the businesses which serve them.