New bill proposes US federal data privacy framework

The proposals could mark the start of a national standard on data privacy regulation, replacing the patchwork of state laws currently in place across the US.

The American Privacy Rights Act (APRA) aims to give individuals greater control over their personal data, how the data is used, and how it moves through other organisations and data brokers. It would also enable individuals to take legal action against entities breaching their privacy rights.

However, the bill faces the procedural hurdle of committee approval in both chambers before potentially becoming law.

As per the draft, carrying out market research would be deemed a valid reason for harvesting, processing and holding or exchanging of data. De-identifying information for purposes of product development and research would also be permitted. 

Howard Fienberg, senior vice-president, advocacy, at the Insights Association, said:

“The Insights Association and the US insights industry support comprehensive federal privacy legislation that would provide strong protection for all American consumers.

“To fundamentally advance the way consumer privacy and data security are protected, a national privacy bill needs to replace the current conflicting patchwork of 15+ state privacy laws and raise the bar for consumer welfare, while allowing for the continued benefits of insights and analytics to flow to all consumers and the broader economy.”

Commerce Chair Cathy McMorris Rodgers, said:

 

“This landmark legislation gives Americans the right to control where their information goes and who can sell it. It reins in Big Tech by prohibiting them from tracking, predicting, and manipulating people’s behaviours for profit without their knowledge and consent. Americans overwhelmingly want these rights, and they are looking to us, their elected representatives, to act.”

“A federal data privacy law must do two things: it must make privacy a consumer right, and it must give consumers the ability to enforce that right…This bipartisan agreement is the protections Americans deserve in the Information Age,” she continued.

Know the risks

These are momentous times for the data privacy landscape in the US, with politicians responding to commercial pressures and ever-strengthening consumer demand for better data regulation. Safe, ethical and compliant data handling behaviour have never been more important; they depend on business leaders staying in touch with these sensitive issues as they evolve.

Get to the heart of the conversation next week at PrivSec & GRC Connect Chicago, where industry experts will discuss the risks, challenges and opportunities facing organisations in our dynamic digital era.