ACT Congressional Testimony on ID Theft

ID Theft Legislation Should Protect Consumers, Not Create Another Victim

ACT Testifies Before Subcommittee on Regulatory Reform and Oversight House Committee on Small Business

Washington – Today, Steve DelBianco, vice president for public policy for the Association for Competitive Technology (ACT) testified on the identity theft legislation before the Subcommittee on Regulatory Reform and Oversight of the House Committee on Small Business.  Mr. DelBianco outlined ACT’s concerns with the growing patchwork of state legislation and thoughts for creating effective, yet small business-friendly solutions to the threat of identity theft.

“The momentum is building for a strong national standard for identity theft, and for good reason.  Not only can consumers can better protect themselves when they receive notice of data breaches, but the growing patchwork of state laws is creating an unworkable system for consumers and small businesses,” said DelBianco.

“Congressional efforts to prevent identity theft should protect consumers, not turn small businesses into another victim.  Unfortunately, many of the current proposals would unduly harm small businesses without effectively reducing identity theft,” DelBianco continued.

There are many ways in which these regulations disproportionately harm small businesses.  Fixed costs, like encryption solutions, create a larger real impact on smaller businesses. In addition, management attention is stretched thin.  It is also rare for a small biz to have enough in-house expertise to solicit, select, and manage information technology security vendors and consultants.

“To make these regulations successful, small businesses need roadmaps to get from here to there.  Efforts to regulate security practice in particular must be accessible for small businesses, consistent, and flexible enough for small firms to work with them,” said DelBianco.