LANSING - State Rep. Gino H. Polidori (D-Dearborn) today said he will soon introduce legislation to stop companies from easily releasing consumers' private information to third parties, a practice that has contributed to increasing identity thefts in Michigan and nationwide.
"When a company hands out our private information without our consent, that's like giving out our house keys to total strangers," said Rep. Polidori, who is a lead sponsor of the five-bill package. "But every day, unknown to consumers, that's what's happening. Companies and businesses are freely and easily giving out the keys that will unlock the doors to our personal finances. Too often, this information falls into the hands of criminals. When companies act irresponsibly, consumers become victims of identity theft. My bills will give power back to consumers and help prevent these stealthy violations."
Rep. Polidori's legislation will force financial institutions and businesses to obtain explicit written permission from a consumer before any financial information can be released or sold. Federal law currently allows companies to sell such information after including a so-called "opt-out" clause, in fine print. This clause, Rep. Polidori said, puts the burden on the consumer to stop the company before it gives out financial information.
Rep. Polidori will hold a press conference in Rooms 402-403 at the State Capitol on Tuesday, May 24, at 9 a.m. Joining him will be Reps. John Espinoza (D-Croswell), Alma Smith (D-Salem Township), Andrew Meisner (D-Ferndale) and Gary McDowell (D-Rudyard), the other lead sponsors.
Rep. Polidori cited a growing list of recent identity crimes that have ruined the lives of many consumers. Thieves recently stole 30,000 Social Security numbers from Lexis-Nexis research, hacked credit card numbers from more than 100 DSW Shoe Warehouse stores and bought information on 145,000 people from the ChoicePoint data clearinghouse, including data on 2,319 Michigan residents, according to a Detroit News article in March.
The federal government said more than 650,000 people were victims of identity theft last year, with 7,300 cases reported in Michigan.