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Record #: O2017-7832   
Type: Ordinance Status: Failed to Pass
Intro date: 11/8/2017 Current Controlling Legislative Body: Committee on License and Consumer Protection
Final action:
Title: Amendment of Municipal Code Title 4 by adding new Chapter 4-286 regarding increased protections against data breaches for Chicagoans
Sponsors: Burke, Edward M., Hopkins, Brian
Topic: MUNICIPAL CODE AMENDMENTS - Title 4 - Businesses, Occupations & Consumer Protection - Ch. 286 Chicago Data Breach Rights and Obligations Ordinance
Attachments: 1. O2017-7832.pdf
Related files: R2019-362
ORDINANCE


WHEREAS, the City of Chicago is a home rule unit of government pursuant to the 1970 Illinois Constitution, Article VII, Section 6(a); and
WHEREAS, pursuant to its home rule power, the City of Chicago may exercise any power and perform any function relating to its government and affairs including the power to regulate for the protection of the public health, safety, morals, and welfare; and
WHEREAS, as practically every aspect of private and public business is conducted and stored on virtual networks and warehouses, data breaches are occurring more frequently and with more potentially disastrous repercussions; and

WHEREAS, "hacks" and data breaches have a near constant strong hold on news headlines as cybercrime afflicts nations and industries throughout the globe; and

WHEREAS, for example, in 2013, the retail giant Target had its systems breached by a cyber-attack that affected more than 41 million customer payment card accounts, causing Target to pay out $18.5 million in settlement fees; and

WHEREAS, in 2014, Home Depot's systems were breached and 50 million cardholders were affected, resulting in Home Depot agreeing to pay at least $19.5 million to compensate those individuals; and

WHEREAS, Equifax is a consumer credit reporting agency that collects and aggregates information on over 800 million individual consumers and more than 88 million businesses worldwide; and

WHEREAS, Equifax then sells this information to third parties in the form of consumer credit reports, insurance reports, and other consumer demographic and analytics infonnation; and

WHEREAS, on July 29, 2017 Equifax discovered evidence of a cyber security breach in their databases that stored confidential and private consumer information of approximately 143 million U.S. consumers; and

WHEREAS, consumer information compromised in the Equifax breach includes names, social security numbers, birth dates, addresses, driver's license numbers, credit card numbers, and documents containing...

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