Obama Wants Companies To Disclose Security Hacks Within 30 Days

January 13, 2015  |  

Most consumers want to know right away when there has been a security breach at a retailer they frequent. But often times it takes weeks–or even months–for the retailer to disclose they have been the victim of a cyber attack.

Now President Obama has proposed a 30-day time limit for companies to disclose security breaches. According to the White House, Obama will call for new laws to make sure American companies tell their customers about consumer information being stolen in hack attacks, reports The New York Times.

Obama just proposed the new law, to be called the Personal Data Notification and Protection Act, during his recent speech at the Federal Trade Commission.

“If the proposal becomes law, the discovery of a breach would trigger a ’30-day shot clock’ requiring companies to disclose information. The law will also make it a crime to sell a person’s information overseas. The Federal Trade Commission, meanwhile, will be empowered to issue penalties to companies that fail to comply,” reports The Next Web.

Obama discussed another important issue: student privacy. “The president also proposed the Student Data Privacy Act, which would prohibit technology firms from profiting from information collected in schools as teachers adopt tablets, online services and Internet-connected software. And he will announce voluntary agreements by companies to safeguard home energy data and to provide easy access to credit scores as a ‘early warning system’ for identity theft,” reports The New York Times.

But Obama’s proposals might face some obstacles when facing the Republican-controlled Congress.

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