LETTERS
Financial Privacy
Lawmakers in Sacramento are once again debating how California should regulate the sharing of information by financial companies. While federal law allows consumers to halt sharing between financial companies and third parties under an opt-out system, proposals in Sacramento have sought to require consumers to opt-in before any sharing can occur.
The business community is working actively with lawmakers to craft a financial privacy bill that is workable and reasonable for California businesses and consumers. The primary vehicle thus far is SB 1 by Sen. Jackie Speier. Unfortunately, SB 1 remains flawed in several areas that must be addressed.
Currently, the bill restricts all information sharing with limited exemptions. This approach could unintentionally restrict information sharing needed to provide convenient and effective customer service for multiple financial products. The bill should focus its approach to restricting information sharing for marketing purposes, which has been identified as a key privacy issue.
SB 1 also currently places unreasonable restrictions on information sharing between affiliated companies. Does it make sense for the state that gave birth to the information economy to place legal barricades inside one corporate family, reducing the ability of a well-known insurance company to offer discounts to customers who purchase their homeowners and auto policies from affiliates with the same corporate brand name?
When it enacted the national standard, Congress chose not to hamper the ability of affiliated companies to share consumer information because such “internal” data exchanges are highly secure and consumers benefit. Congress also recognized that the big enchilada in the privacy arena, identity theft, is caused by criminals, not by financial services companies whose very survival is predicated on protecting their customers’ finances.
California has been identified as the national leader on privacy by the respected “Privacy Journal” due largely to our enactment of 40 new privacy laws on issues such as telemarketing, identity theft and medical information. Additional privacy laws, particularly those regulating the complex financial services industry, should weigh the economic impacts on businesses and consumers. Key changes to SB 1 would help provide consumers new choices without unduly burdening California’s struggling economy.
Fred Main
Sr. VP and General Counsel
California Chamber of Commerce
Sacramento
Deep Dining
May has been a good month, with hostilities in Iraq diminishing, the stock market stirring, the Daffy Ducks pulling off an ‘Anaheim’ and Spring “crescendoing.” What better time to treat the spouse or significant other to a gourmet meal?
I have just the place: Costco.
On a recent trip to the Santa Ana store, Mimi and yours truly dined thusly:
& #149; Appetizers. Thin cracker wafers with low-calorie cheese spread. Graham and wheat crackers. Cottage cheese with fresh pineapple chunks.
& #149; Entrees. Grilled salmon pieces. Strips of grilled New York steak. Grilled beef bratwurst chunks (not so low-calorie).
& #149; Beverages. Fashionable fruit-flavored “ice” diet drinks.
& #149; Desserts. Chocolate mint truffles with caramel sauce. Sliced oatmeal fruit bars.
This scrumptious feast was entirely complimentary,with our $200 purchase of bulk necessities.
Check it out. Reservations are never required, although a club card is. Menus change daily. Dress is casual.
Michael Arnold Glueck
Newport Beach
