Legislation requiring companies to meet security standards and notify customers of data breaches has moved forward in the U.S. House of Representatives, according to The Hill.
If enacted, it would transcend many local breach notification laws across the country. Opponents fear this could do away with stronger state level consumer protections. Companies that violate the bill’s rule would be subject to penalties enforced by the Federal Trade Commission (FTC).
The House Energy and Commerce Subcommittee on Trade approved the bill after voting down amendments to the bill’s pre-emption of state laws made by Democratic committee members.
The bill is part of a recent wave of similar data-breach legislation that has been proposed to protect consumers in the events of cyber hacks. President Obama has urged Congress to take action as consumers and businesses remain apprehensive of hackers stealing sensitive information.