[Kde-i18n-vi] Gold Central - goldcentral.com - California Financial Privacy Law Partially Invalidated

[paul.kholer paul.kholer]

http://www.goldcentral.com/ - Gold Central

The 9th Circuit Federal Court of Appeals has dealt a blow to privacy
advocates by invalidating a California privacy law. In litigation brought by
the American Bankers Association and others, the appellate court overruled
the finding of a trial judge that the California law could stand. Instead,
the appellate justices found the law to be pre-empted in part by the federal
2003 Fair and Accurate Credit Transactions Act.

When a state law conflicts with a federal one, the federal law takes
precedent. For instance, the Supreme Court has ruled abortion to be
constitutionally protected. No state may pass anti-abortion laws and have
them enforced.

The question at issue in the California law was a section giving California
residents the right to block financial institutions from selling their
private information to third parties.

A San Francisco trial judge, Morrison C. England, Jr., had ruled the section
conflicted with provisions of the Fair and Accurate Credit Transactions Act,
but was not pre-empted because the federal law allowed for stricter state
laws. The 9th Circuit court disagreed.

The case will be returned to Judge Morrison in the next 60 days. He will
then determine whether any other provisions dealing with the sale of
personal financial information are still enforceable. Given the appellate
ruling, it is difficult to imagine a ruling upholding this section of the
California law.

Notwithstanding these developments, approximately seventy percent of the
California privacy law is still enforceable. Financial institution still
must get permission from customers prior to selling or sharing your
information with third parties.

You should be concerned about financial institutions selling your private
information to others. With all the incidents of identity theft in the news,
chances are you will eventually become a target. Banks should be focusing on
protecting their customers, not making a buck off private information.
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