House Bill Would Have FTC Regulate SSN Sales

Legislation authorizing the Federal Trade Commission to regulate the buying and selling of individual Social Security numbers was introduced in the U.S. House of Representatives late last week.

The measure is the latest in a string of bills pending in either the House or U.S. Senate to protect the privacy of the numbers.

Sponsored by Rep. Edward Markey (D-MA), the Social Security Number Protection Act (HR-4513) would require the FTC to develop rules restricting the buying and selling of individual numbers within one year of the bill becoming law. The FTC would consult with the U.S. Justice Department and other federal agencies.

One measure in the bill prohibits the use of a person’s Social Security number to “commit or facilitate fraud, deception or crime [that would] result in bodily, emotional or financial harm to anyone.”

The bill exempts law enforcement, public health and researchers from any regulations adopted by the FTC. But they would be required to provide the commission with “adequate assurances that the numbers will not be used to harass, target or publicly reveal information concerning any identifiable individuals.”

The attorneys general of each state would be authorized to sue-in federal court– any individual or organization that illegally buys or sells Social Security numbers.

Markey, introducing the bill said it was needed because “the unregulated sale and purchase of these numbers is a significant factor in a growing range of illegal activities, including fraud, identity theft, and tragically, stalking and now, even murder.”

Noting that the numbers have become a de facto form of personal identification over the years, he added that the “risks and abuses associated with the misuse of Social Security numbers are only being magnified by the rapid growth of electronic commerce.”

Markey added that the bill “will help reduce the incidence of pretexting crimes, identity thefts and other frauds or crimes involving [the] misuse of a person’s Social Security number.”