The tech sector has raised concerns about a comprehensive data privacy bill currently moving through Congress. Despite being a landmark effort, the American Privacy Rights Act (APRA) is deemed not ready for implementation by several industry groups such as the Consumer Technology Association and the US Chamber of Commerce.
In a June 10 letter, 22 trade organizations under the banner United for Privacy urged the House Energy and Commerce Committee to fully preempt state privacy regulations. They argued that APRA fails to create a uniform national standard due to its inadequate federal preemption of the growing patchwork of state privacy laws.
Introduced by Senate Commerce Committee Chair Maria Cantwell and House Energy and Commerce Committee Chair Cathy McMorris Rodgers, APRA aims to tackle various online privacy issues, including transparency in data collection and giving consumers rights over their data. However, critics argue that the private right-of-action provision might lead to excessive lawsuits and that preempting state laws may not be beneficial.
Some cybersecurity organizations have also criticized the bill for not being stringent enough on data brokers. The legislation has been revised recently to include more responsibilities for data brokers and new sections on children’s privacy.
Tech and business trade groups argue that without clear federal preemption over state laws, the bill would perpetuate a confusing state-level regulatory patchwork, which could have negative economic impacts. TechNet President Linda Moore highlighted that since 2018, 46 states have considered comprehensive data privacy bills, creating consumer confusion and economic challenges. Hence, a unified national privacy standard is deemed critical, but the current draft of APRA falls short.
Source: Tech sector sounds alarm bells over comprehensive data privacy bill.
