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What You Need to Know About the PPEBA
The union of the Internet and commerce has lead to increases in productivity, convenience, and access for consumers everywhere. At the same time, it has spawned tremendous privacy concerns. It is not uncommon these days to hear of businesses inadvertently publicizing consumers' personal data, or worse, hackers obtaining personal financial information.
Concerns over these privacy issues have at last reached our industry, as evidenced by the various privacy related provisions incorporated in the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). In particular, the BAPCPA incorporated the Leahy-Hatch Amendment, also known as The Privacy Policy Enforcement in Bankruptcy Act of 2001 (PPEBA), which I had the honor of drafting. In particular, the PPEBA, in order to address certain privacy concerns, amended Bankruptcy Code Section 363(b)(1) and added pre-conditions to the sale or use of consumer data, added a new Section 332 creating the 'privacy ombudsman,' and defined 'personally identifiable data' in Section 101(41A). This article reviews the development of these amendments, and analyze their potential impact for practitioners.
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