Data Security - Issue Summary
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| What is the fundamental issue? |
| As technology has evolved and become vital for businesses to thrive, a growing number of public and private entities (including colleges, universities, health insurance companies and data brokers) that keep and maintain personal information (financial accounts, social security numbers, phone numbers), have become victims of security breaches. These breaches expose fundamental flaws in the way that companies handle and secure consumers’ personal information. Consumer privacy has been compromised and these breaches put consumers at an elevated risk of becoming victims of identity theft. 44 states have data breach rules on the books most of them require notification when online data is breached. Congress is considering establishing a national data breach standard and rules about how businesses secure their online data. |
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| I'm a Realtor®. What does this mean to my business? |
| REALTORS® have long been strongly supportive of efforts to protect consumers’ sensitive personal information. The REALTOR® Code of Ethics and Standards of Practice explicitly acknowledge a REALTOR'S® obligation to preserve the confidentiality of personal information provided by clients in the course of any agency or non-agency relationship - both during and after the termination of these business relationships. REALTORS® support for data protection measures is also bolstered by their day-do-day business activities where they see first hand the damage that identity theft can do to a family's efforts to rent an apartment or buy a home. |
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| NAR Policy: |
| REALTORS® strongly support efforts to protect their clients' sensitive personal information but believe that any legislation must not overly burden small firms with limited resources. In addition, any federal data security legislation should not preempt state laws which may offer state residents additional protection. |
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| Legislative/Regulatory Status/Outlook: |
| Data security legislation has gained traction in the Congress this year as has other consumer protection legislation. The House bill has passed out of the House Commerce Committee, Senate bills will be considered soon in the Senate Judiciary Committee. The overall outlook for passage this year remains murky. |
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| Related Information: |
| NAR's page on Identity Theft |
 Link to Thomas
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