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.