Gov. Schwarzenegger says “hasta la vista” to California data protection law

California Governor Arnold Schwarzenegger has vetoed a legislative proposal that aimed to increase California’s data protection standards. The proposed law, AB 779, imposed stronger data protection requirements than the Payment Card Industry Data Security Standard, an industry-created standard for protecting consumer data.

Gov. Schwarzenegger objects to the broad scope of the law and argues that compliance would be excessively costly and burdensome for small businesses. The Governor also argues that the industry is better equipped than lawmakers to evaluate the need for higher standards. “Protecting the personal information of every Californian is very important to me and I am committed to strong laws that safeguard every individual’s privacy and prevent identity theft,” the Governor wrote in a veto statement. “However, this bill attempts to legislate in an area where the marketplace has already assigned responsibilities and liabilities that provide for the protection of consumers.”

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