NFIB says NO to small business holding the bag for credit card security breaches
Efforts by Michigan banks and financial institutions to pass legislation that would hold a small business responsible for the costs of reissuing credit cards and freezing accounts when cardholder information is compromised was the subject of a recent hearing. NFIB’s Assistant State Director in Michigan, Amanda Fisher, testified that, although identity theft and fraud is a serious issue, we will not support any effort that leaves small business holding the bag for credit card security breaches over which they have little to no control.
Under the proposed legislation, if new rules are not followed then a financial institution would have a statutorily provided cause of action against any business that didn’t precisely follow the rules. In our view, it is unrealistic to expect small businesses to be liable for compliance with yet another set of rules and standards established by a committee of political appointees. A more practical approach to the problem is for a uniform federal cybersecurity standard, not a state by state patchwork of varying standards.
NFIB’s Assistant State Director in Michigan Amanda Fisher says NO to sticking small business with the tab for ID theft
