AFSA Secures Bipartisan Letter Seeking Safeguards Rule Extension
Today, a bipartisan group of House members wrote a letter to the Federal Trade Commission (FTC) to extend the effective date of the Safeguards Rule for one year until December 9, 2023.
“While we believe this rule makes important strides toward protecting consumer data, it is our understanding that the rule will require a one size fits all approach across the financial services industry to implement complex cybersecurity,” the letter said. “Presently, many small and medium size businesses continue to face supply chain distribution issues from COVID-19 as well as workforce challenges and equipment shortages that we are concerned will make it nearly impossible to comply with the rule by the current deadline.”
AFSA, along with other industry groups, has sought an extension of the effective date for the amended Safeguards Rule to help small and midsize businesses that have difficulty competing for highly skilled cybersecurity workforce talent. This letter, in conjunction with a letter from the Small Business Administration’s Office of Advocacy and a joint trades letter, will hopefully have a positive impact on the FTC. Currently, the FTC’s Safeguards Rule goes into effect on December 9, 2022.
The letter was signed by was signed by Reps. Chrissy Houlahan (D-PA), Young Kim (R-CA), Ann McLane Kuster (D-NH), Andrew R. Garbarino (R-NY), Tom O’Halleran (D-AZ) and Scott H. Peters (D-CA).
October 19th, 2022
