Data Breach Prevention and Compensation Act of 2018

Data Breach Prevention and Compensation Act of 2018

This bill creates the Office of Cybersecurity within the Federal Trade Commission (FTC) that, in part, must:

• supervise, evaluate, and regulate specified agencies' management of data security;
• examine agencies annually for compliance with regulations;
• investigate an agency in the event of a breach covered by the bill or suspected noncompliance with regulations, and report on any findings of such investigation; and
• coordinate with the National Institute of Standards and Technology and the National Cybersecurity and Communications Integration Center of the Department of Homeland Security.

The office is authorized to: (1) investigate an agency's compliance with regulations regarding any data breach, and (2) enjoin an agency from violating specified regulations.

Specified consumer reporting agencies, in part, must:

• provide the office with information relating to security measures,
• demonstrate reasonable data protection measures, and
• notify the FTC of a covered breach.

The bill establishes civil penalties for violations and directs the FTC to enforce compliance.