Texas Senate Bill SB163

Texas 2009 - 81st Regular

• Filed: 11/10/08

Caption

Relating to a consumer's option to prevent the sale of the consumer's financial information by a financial institution; providing for civil liability.

Impact

The impact of SB163 on Texas state laws will be notable, particularly in regulating how financial institutions operate with consumer data. By mandating notice and authorization before the sale of financial information, the bill seeks to align with broader trends in data privacy. This could also influence how financial institutions draft their agreements and communicate with existing and potential customers, thereby fostering a culture of transparency and accountability in their operations.

Summary

SB163 seeks to enhance consumer protections regarding the sale of financial information by financial institutions. The bill stipulates that consumers must explicitly authorize any sale of their financial information, thereby providing them greater control over their personal data. By requiring such authorization, the legislation aims to ensure that consumers are aware of and consent to how their financial information is used and shared. This change is significant in a landscape where data privacy is increasingly at the forefront of public concern.

Contention

Notably, there may be points of contention surrounding the implementation of this bill. Critics may argue that the additional authorization requirements could hinder business operations for financial institutions or lead to revenue losses from declined sales of information. Moreover, the stipulation regarding civil liability for intentional violations poses questions about enforcement and the potential for increased litigation, which could have impacts on both consumers and financial institutions alike.