A measure approved by the California State Assembly has put Internet privacy on center stage, but won’t solve the real problem of identity theft, according to the American Insurance Association (AIA).
“A real-life hacking incident has brought the issue of Internet privacy home to members of the California Legislature,” Bill Gausewitz, AIA assistant vice president, western region, remarked. “Just last week it was announced that California’s Teale Data Center was broken into by computer hackers, compromising the personal financial records of all 260,000 state employees. Unfortunately, the bill just approved by the Assembly would not prevent this from happening again. Worse, it would generate frivolous and costly class action lawsuits against companies that conduct business over the Internet.”
AIA and several major business organizations have been actively opposing this measure because they state it would expose business Web sites to frivolous class action lawsuits and unnecessary notice requirements for minor infractions.
“The author has committed to continue working with the opposition, but we have so far been unable to bridge our disagreements about this bill,” Gausewitz concluded.
The California State Assembly approved AB 2297 on a 41-26 vote. The bill will now move to the California State Senate for consideration.
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