[Ecommerce] Proposed Legislation in Mass. Would Shift Data Loss Costs to Retailers

[Jeff Williams]

All,

  I believe this is a move in the wrong direction..

See:
http://www.boston.com/business/globe/articles/2007/02/20/bill_targets_retailers_for_costs_to_fix_data_thefts?mode=PF

and
 http://online.wsj.com/public/article/SB117211275783215723-aH17xXK5QiR2rZncblC6wDttYlA_20070323.html?mod=tff_main_tff_top



 "Massachusetts bankers are lobbying for legislation that would place
the
burden of paying for the costs of cleaning up data security breaches on
retailers and other entities that fail to keep the information secure.
Currently, banks are forced to absorb the costs of credit card fraud,
which was estimated to be US $2 billion last year.  Retailers counter
that the change would increase banks' profits, but do little
to protect consumers.  Jon B. Hurst, president of the Retailers
Association of Massachusetts, says there are already policies in
place that let banks recoup losses incurred when data are mishandled;
furthermore, banks charge retailers a percentage of their sales,
presumably in part to help cover the cost of fraud.  Massachusetts
Bankers Association spokesperson Bruce E. Spitzer pointed out that not
even one-third of major retailers are in compliance with credit card
security standards.  The legislation would affect any entity doing
business in Massachusetts, regardless of where that business is based."

Regards,
--
Jeffrey A. Williams
Spokesman for INEGroup LLA. - (Over 134k members/stakeholders strong!)
"Obedience of the law is the greatest freedom" -
   Abraham Lincoln

"Credit should go with the performance of duty and not with what is
very often the accident of glory" - Theodore Roosevelt

"If the probability be called P; the injury, L; and the burden, B;
liability depends upon whether B is less than L multiplied by
P: i.e., whether B is less than PL."
United States v. Carroll Towing  (159 F.2d 169 [2d Cir. 1947]
===============================================================
Updated 1/26/04
CSO/DIR. Internet Network Eng. SR. Eng. Network data security
IDNS. div. of Information Network Eng.  INEG. INC.
ABA member in good standing member ID 01257402
E-Mail jwkckid1@ix.netcom.com
 Registered Email addr with the USPS
Contact Number: 214-244-4827