What about requiring every third-party service provider to protect personal customer data through encryption, tokenization or another advanced security technology, through clauses written into and enforced as part of standard service level agreements?

FORBES: The Epsilon Hack Attack: Time For "SOX For Consumers"?

To encrypt its data, the pen uses an algorithm called Rijndael, which the National Institute for Standards and Technology is planning to use as the Advanced Encryption Standard, which will replace the existing Data Encryption Standard (DES), which is currently being phased out of use.

FORBES: Ten O'Clock Tech: The Smartpen