Last month, the state of California lawmakers approved the Data Protection Act consumers, that would have banned most companies maintain credit or debit card numbers, customer verification codes or personal identification numbers. Under the new law, businesses that accept recurring payments would be allowed to keep this information, but would be required to follow specific guidelines, such as strengthening electronic firewall, encryption of personal information and limit the access to protect data to customers. The law would also have forced retailers to provide customers with more details on security vulnerabilities.
Although the law of protection of consumer data was strongly supported by the Assembly of the State of California and Senate, Governor Arnold Schwarzenegger vetoed the bill last week, as he vetoed an earlier version of the bill last year. Schwarzenegger said the two bills have tried to "legislate in an area where the market has already assigned responsibilities and liabilities that provide consumer protection." Bob Arnold, vice president of government affairs at the Credit Union League California, said the veto "ensures that millions more Californians will have their privacy invaded."
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