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| California Governor Vetoes Data Security/Reimbursement Legislation |
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Gov. Arnold Schwarzenegger has vetoed legislation
that would have codified many aspects of the Payment Card Industry Data Security
Standard (PCIDSS) and held merchants (and others) responsible for the costs
associated with notice and card replacement. The bill (AB 779) would have created specific requirements for handling payment card data similar to those found in the PCIDSS and required entities subject to a breach to be held responsible for “all reasonable and actual costs” associated with notice and card replacement. Entities that could “demonstrate compliance” with the payment data handling requirements would have been exempt from the reimbursement provisions. California is often considered a bellwether for legislative trends relating to data security and privacy law; as such, this legislation may have served as a catalyst for other state legislatures to consider similar laws. The legislation received strong support from both the California State Assembly and Senate, along with consumer groups and privacy advocates. However, many in the payments industry expressed concern that the overly prescriptive nature of putting elements of the PCIDSS into law could hinder industry’s efforts to develop a flexible self-regulatory framework. The legislation was also strongly opposed by the California business community that was concerned over the potential liability to retailers. ETA strongly supports industry self-regulatory efforts for the protection of cardholder data and is committed to supporting education efforts to promote greater understanding, awareness and compliance with the PCIDSS among its members and other stakeholders. The ETA Government Relations Committee actively monitors and represents the interests of its members on major legislative and regulatory developments affecting the card payments industry. |
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| Upcoming Events |
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Strategic Leadership &
Compliance Day November 5-6, 2008 Dallas, TX
2009 ETA Annual Las Vegas, NV |
| 2009 Annual Meeting |
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 2008 Annual Meeting Exhibitor Information is Here! If you're planning to join the leading companies in the payments business in the ETA Annual Meeting exhibiton hall next April, now is the time to reserve your space and make your plans. Everything you need is here . |
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