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The market relies on a sensible legal framework of ownership and liability. Society has to decide under what circumstances a person or business can be financia

The market relies on a sensible legal framework of ownership and liability. Society has to decide under what circumstances a person or business can be financially liable for their mistakes. The liability should match the real-world harm. Data breaches have significant real-world harm. Unfortunately Equifax got out of this without paying fines in several state at least. It was the regulators who failed us here, not the market: https://www.reuters.com/article/us-equifax-states-agreement/equifax-avoids-fines-in-deal-with-u-s-states-over-data-breach-idUSKBN1JN2YH https://www.reuters.com/article/us-equifax-states-agreement/... Customer data should be like radioactive waste. Companies should know that if they have it, they have to take appropriate measures to secure it, and if they don't they will take a significant financial hit. The financial penalties should be significant enough that if a business doesn't feel sure they can invest into proper security, it makes more sense to just not keep the user data.

rectang 7y ago
> It was the regulators who failed us here, not the market On the contrary: the credit reporting industry is a perfect example of market failure thanks to regulatory capture. The actors in the market exercise a high degree of control over the regulators. The regulators are not independent and the companies that influence them are not innocent. All markets are constructed. The credit reporting market is just set up with rules which are grossly harmful to individuals.
- haberman 7y ago
  I don't think Equifax is innocent, I believe they should be liable for the damage they caused. Regulators answer to the people, it is their job to act in our interest and our job to hold them accountable to this.
  - rectang 7y ago
    We're mostly on the same page, but here's my quibble: you hold Equifax responsible "for the damage they caused" but not for their role in corrupting the regulatory regime. Regulators should answer to the people, but because corporations are extremely motivated, fabulously wealthy, and privileged by the court system, the people have to compete for the regulators' attentions. I think it makes sense to acknowledge that Equifax is acting against the common good, even if that's just incidental to Equifax acting in its own interests.

rectang 7y ago

> It was the regulators who failed us here, not the market On the contrary: the credit reporting industry is a perfect example of market failure thanks to regulatory capture. The actors in the market exercise a high degree of control over the regulators. The regulators are not independent and the companies that influence them are not innocent. All markets are constructed. The credit reporting market is just set up with rules which are grossly harmful to individuals.

haberman 7y ago
I don't think Equifax is innocent, I believe they should be liable for the damage they caused. Regulators answer to the people, it is their job to act in our interest and our job to hold them accountable to this.
- rectang 7y ago
  We're mostly on the same page, but here's my quibble: you hold Equifax responsible "for the damage they caused" but not for their role in corrupting the regulatory regime. Regulators should answer to the people, but because corporations are extremely motivated, fabulously wealthy, and privileged by the court system, the people have to compete for the regulators' attentions. I think it makes sense to acknowledge that Equifax is acting against the common good, even if that's just incidental to Equifax acting in its own interests.