President Clinton’s new proposals to the Financial Services Modernization Act include adding state Attorney General enforcement authority to financial institutions regulated by the Federal Trade Commission.
That announcement, made by Peter Swire, the President’s chief counselor for privacy, office of management and budget, caused some attendees to audibly gasp yesterday during a presentation at the Direct Marketing Association’s Government Affairs Conference 2000 in Washington, DC.
Dennis Ambach, manager of legislative affairs for efunds Corp., Minneapolis, MN, a provider of risk assessment for financial institutions and retailers, said the added enforcement could toughen the existing proposals, particularly in a state like Minnesota, where the AG is already tough on privacy.
He said Minnesota AG Mike Hatch wastes no time in addressing privacy issues that effect state consumers. For example, he filed a lawsuit against USBank over privacy issues and got an “immediate settlement.” Another suit filed against Minnesota Public Radio, over the interpretation of the word “occasionally” when exchanging lists with affiliates, is pending legislation, Ambach said. In addition, Hatch testifies often on Capital Hill on privacy issues and is making himself known as a privacy advocate,” he said.
Clinton announced the new proposals on Sunday. The new regulations are expected to be finalized May 12.
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