A proposed comprehensive digital privacy policy is currently under consideration in Congress, with lawmakers in key positions working to pass the bipartisan measure. If approved, the American Privacy Rights Act would bring significant changes for consumers, tech businesses, and privacy regulators at both the federal and state levels.
The proposed legislation, known as the American Privacy Rights Act, aims to establish a national standard for how companies collect, use, and share consumer data. It would give users the ability to opt out of targeted advertising, access and delete their data, and transfer their information to other digital platforms. Larger companies with substantial data operations would face increased scrutiny, while businesses earning less than $40 million annually would be exempt from some of the law’s requirements.
Key components of the proposal include federal preemption of state privacy laws and the inclusion of a private right of action. Supporters of the bill, including Senate Commerce Committee Chairwoman Maria Cantwell and House Energy and Commerce Committee Chairwoman Cathy McMorris Rodgers, hope to gain bipartisan support for the measure.
The proposal has garnered praise from industry groups like the Consumer Technology Association, which supports a national privacy standard that preempts state laws to provide consistency and clarity for companies and consumers across state lines. Democrats may appreciate the private right of action included in the bill, allowing users to seek damages in court for violations of the law.
While the details of the proposal are still being analyzed by industry stakeholders, there are concerns about potential burdens on businesses and the need for clarity in the drafting of the legislation. The fate of the American Privacy Rights Act remains uncertain, as it has yet to be formally introduced and faces challenges in the legislative process. With time running out before the next election and the potential departure of a key sponsor, refining the bill and securing industry support may prove to be challenging tasks.
