Congressman Jerry Kleczka

For Immediate Release                                                                                 (202) 225-4572
Kleczka bill restores consumer control over personal information
"Once taken for granted, our wall of privacy is crumbling"

WASHINGTON, DC - April 15, 1999 - Consumers would not be required to provide personal information, and businesses could not deny goods or services to those who refuse to furnish Social Security numbers or other personal information under legislation re-introduced today by Congressman Jerry Kleczka.

The bill, called the Personal Information Privacy Act (PIPA), would restore consumer control over personal information by requiring consent for the commercial use of Social Security numbers, including their use for obtaining credit reports and as a personal identifier.
 
"Once taken for granted, our wall of privacy is crumbling. Today, merchants require a  Social Security number on checks used for a purchase, and even cable TV companies are asking for our Social Security numbers on applications for service," Kleczka said.
 
Under PIPA, businesses would commit an unfair or deceptive business practice by refusing services or goods to consumers who refuse to furnish personal information. Credit bureaus also would be prohibited from giving out Social Security numbers, and consumer transaction information would be protected from marketers.
 
"Consumers own their personal information," Kleczka said. "It's a personal possession, not a commodity. What we buy and where we buy it is no one's business but our own."
 
The bill would amend the Fair Credit Reporting Act and the Social Security Act authorizing civil penalties from $25,000 up to $500,000. Criminal penalties for misuse of personal and credit information were made law last year with passage of the Identity Theft and Assumption Deterrence Act, co-sponsored by Kleczka.
 
State departments of motor vehicles also would be prohibited under PIPA from giving out Social Security numbers or an individual's photograph in any form or format without the express written consent of an individual. Exceptions are made for law enforcement purposes.
 
"The reach of technology, while a remarkable convenience, has also created a permissive atmosphere to access our personal information," Kleczka said. "A firewall must be built around that information."
 
A recent Government Accounting Office (GAO) report indicates that, "No single federal law regulates the overall uses of Social Security numbers." Consequently, Kleczka notes, requiring an individual's Social Security number, the key to a wealth of personal information, is now a common practice  - a condition of doing business.
 

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