Senator Feinstein Introduces Comprehensive Measure to
Better Protect Americans' Privacy, Prevent Identity Theft

April 1, 2003

Washington, DC - U.S. Senator Dianne Feinstein (D-Calif.) last night introduced comprehensive legislation to combat the growing scourge of identity theft and other privacy abuses by setting a national standard for protection of personal information, including Social Security numbers, driver's licenses and health and financial data.

"Americans' personal information is much too vulnerable to theft or abuse," Senator Feinstein said. "With access to sensitive data so widely available -- often just at the touch of a keyboard -- it is easy to understand why identity theft has become one of the country's fastest growing crimes. The legislation I have introduced today would help stop identity theft and would give consumers more control over how their personal information is used."

This legislation, known as The Privacy Act, establishes a clear, two-tiered system of protection for all personal information:

  • First, for the most sensitive personal information such as Social Security numbers, driver's licenses, and financial and health data, companies must get an individual's explicit permission prior to the sale, licensing, or renting of this information to third parties (opt-in); and


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  • Second, for non-sensitive personal information such as names and addresses, companies that wish to collect, sell, or market that data must give individuals an opportunity to withhold their personal information if they so choose (opt-out).

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"Every American has a fundamental right to privacy, no matter how fast our technology grows or changes," Senator Feinstein said. "A person should be able to have control over how his or her most sensitive personal information is used. But our right to privacy only will remain vital, if we take strong action to protect it."

In addition to establishing a national standard for the protection of personal information, the legislation would:

  • Prohibit the sale or display of Americans' Social Security numbers to the public, but would allow businesses to share these numbers with other businesses and government entities.
  • Require local governments to redact Social Security numbers on government records available on the internet or other electronic media, and the numbers would no longer be permitted to be printed on government checks or as the default driver's license number.


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  • Expand the opt-in requirements for health data to include health researchers, schools or universities, life insurers, employers, public health authorities, health oversight agencies, and law enforcement officials. Currently, only health plans, health care clearinghouses, health care providers are directly regulated under the law.


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  • Permits businesses to share financial information with their affiliates or joint venture partners, unless a customer objects (opt-out).


  • Close loopholes in the Driver's Privacy Protection Act so that a state Department of Motor Vehicles can no longer disclose the most sensitive information on a driver's license - such as the driver's identification number or physical characteristics - without the driver's opt-in.


  • Prohibits a business from denying service to a customer who refuses to provide his or her Social Security number, except in cases where the Social Security number is needed.


  • Protect the privacy of information regardless of the medium through which it is collected.

"Through these measures, our personal information would be better protected from identity thieves and other predators of personal information," Senator Feinstein said. "It restores to individual more control over his or her most sensitive personal information such as Social Security numbers, health information, and financial information. It also sets reasonable guidelines for businesses that handle our personal information every day."

According to a report recently released by the Federal Trade Commission (FTC), identity-theft complaints were the most common fraud complaint reported by American consumers last year, accounting for 43 percent of all complaints to the FTC. In California, 30,738 identity theft cases were reported to the FTC - the most of any state.

Senator Feinstein has long been interested in combating identity theft. In addition to the Privacy Act, Senator Feinstein has introduced three other measures in the 108th Congress to protect Americans' personal information and to help prevent and prosecute identity theft crimes:

  • The Identity Theft Penalty Enhancement Act, which would increase penalties on identity theft crimes. This bill has been approved by the Senate and is awaiting consideration by the House.


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  • The Social Security Number Misuse Prevention Act, which would make it harder for identity thieves to obtain Social Security numbers by restricting public access to the number.


  • The Identity Theft Prevention Act, which would requires banks, credit bureaus, and other financial institutions to take a series of practical steps to cut-off criminal access to sensitive consumer data.


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