US Lawmakers Unveil Draft Bipartisan Data Privacy Legislation

Two key U.S. legislators released a draft bipartisan data privacy legislation on Sunday aimed at strengthening privacy safeguards and limiting the type of consumer data that tech firms can gather.

The American Privacy Rights Act empowers Americans to prohibit the sale or demand the removal of personal information.

The deal was brokered between Democratic Senator Maria Cantwell, head of the Commerce Committee, and Representative Cathy McMorris Rodgers, the Republican chair of the House Energy and Commerce Committee.

They said the legislation seeks to establish "clear, national data privacy rights and protections for Americans."

The legislation is expected to supersede state-level data privacy regulations and will provide a mechanism for Americans to pursue legal action against those who infringe upon privacy laws.

According to Reuters, under the proposed legislation, individuals would gain authority over the utilization of their personal data, with requirements for disclosure in cases where data has been shared with foreign adversaries.

Since 2019, Congress has engaged in debates on online privacy protections, prompted by concerns over the use of data by social media giants like Meta's Facebook, Alphabet's Google, and ByteDance's TikTok.

Cantwell and Rodgers said in a joint statement: "This bipartisan, bicameral draft legislation is the best opportunity we've had in decades to establish a national data privacy and security standard that gives people the right to control their personal information. This landmark legislation represents the sum of years of good faith efforts in both the House and Senate."

"It strikes a meaningful balance on issues that are critical to moving comprehensive data privacy legislation through Congress. Americans deserve the right to control their data and we're hopeful that our colleagues in the House and Senate will join us in getting this legislation signed into law," the statement added.

Under the proposal, the Federal Trade Commission (FTC) and state attorneys general would be granted expansive jurisdiction to monitor consumer privacy matters and institute "robust enforcement mechanisms" to ensure accountability for offenders, including enabling individuals to take legal action.

Although the bill doesn't prohibit targeted advertising, it empowers consumers to opt out of such practices. The FTC would establish a dedicated bureau concentrating on privacy issues and would be authorized to impose fines for privacy breaches, extending to telecommunications firms as well.

If implemented, the proposed law would supersede the majority of existing state privacy regulations, although it would not affect specific state laws currently in force that safeguard financial, health, or employee data.