The U.S. House of Representatives will soon be considering the Data Accountability and Trust Act (DATA). If passed it would require all companies to inform customers of security breaches that affect their personal data. The bill requires consumers to be told if their privacy has been violated because of a breach. Under the proposals, if a breach does occur, a company must notify any customers concerned and the FTC, which can then demand an audit.
Why did
this issue take so long to get to congress? Of course you know this will ultimately lead to companies not really informing customers of breaches. It will take Congress two years to meet again and truely define what constitutes a "Breach" before any true enforcement can begin.