Technologies / Data Privacy and Security

Given public concern over consumer data privacy, data breaches and online marketing/advertising, Congress has been considering legislation to strengthen data collection, storage and flow regulations; require privacy notices; and impose other information safeguards. 

Supports a single federal standard for data privacy and security laws consistent with the following principles:

• Collection of personal information should be transparent. REALTORS® respect consumer data privacy expectations, and develop, implement and communicate data privacy/security policies to clients.
• Use, collection and retention of personally identifiable information. REALTORS® collect and use data only to provide consumer services, and maintain appropriate policies for the reasonable retention and proper destruction of any personally identifiable information.
• Data Security. REALTORS® maintain reasonable security standards and procedures regarding access to client information.
• Disclosure of personally identifiable information. REALTORS® do not reveal personally identifiable data to third parties unless information helps complete a consumer initiated transaction; the consumer requests it; the disclosure is required or allowed by law; or the consumer has been informed about the possibility of disclosure and provided with an opportunity to opt-out.
• Maintaining consumer privacy in business relationships. If a REALTOR® provides personally identifiable information on behalf of a consumer, the third party should adhere to privacy principles like REALTORS®.

Opponents of legislation/regulation are generally concerned about limiting business practices which could curtail business models or create excessive costs for business. Others believe that these proposals do too little to protect consumers.

• Cover entities handling sensitive information with few exceptions;
• Set data security standards for banks and non-banks;
• Provide for enforcement by banking regulators and by the Federal Trade Commission for non-banks;
• Ensure equivalent enforcement by banking and non-banking regulators, with requirement that agencies coordinate on equivalent enforcement and penalties; and
• Provide for a federal preemption of certain state and common laws.

Congressional authorizing committees have not introduced legislation at this time.