Two key U.S. lawmakers have announced a breakthrough on draft bipartisan data privacy legislation, heralding a significant step towards reining in the collection of consumer data by technology companies.
Democratic Senator Maria Cantwell, chair of the Commerce Committee, and Representative Cathy McMorris Rodgers, Republican chair of the House Energy and Commerce Committee, brokered the agreement. This legislation would empower Americans to control the selling or deletion of their personal information, marking a pivotal moment in the ongoing debate over online privacy protections that has gripped Congress since 2019.
The proposed legislation aims to give individuals greater authority over the use of their personal data and mandates disclosure if such data is transferred to foreign adversaries. It represents a concerted effort to address mounting concerns surrounding the handling of data by tech giants like Meta Platforms, Facebook, Google, and TikTok. Despite years of deliberation, Congress has struggled to reach consensus on this issue, prompting fervent anticipation for progress on this front.
Aides involved in the negotiations expressed optimism about advancing the legislation expeditiously, signaling a potential turning point in the protracted battle over online privacy. However, representatives from Meta, TikTok, and Google were not immediately available for comment on the proposed legislation, underscoring the significance and potential impact of the bill.
The bipartisan agreement grants authority to the Federal Trade Commission (FTC) and state attorneys general to oversee consumer privacy matters, with provisions for robust enforcement mechanisms. Notably, it includes a private right of action for individuals, allowing them to seek recourse against violators of privacy standards.
While the legislation does not outright ban targeted advertising, it affords consumers the option to opt out of such practices. Additionally, the FTC would establish a dedicated bureau focused on privacy and would be empowered to levy fines for privacy violations, extending its regulatory reach to telecommunications companies.
The backdrop for this legislative push includes fines and settlements reached with tech companies in recent years over privacy breaches. These include Facebook’s record-breaking $5 billion fine in 2019 and ByteDance’s $92 million settlement regarding TikTok’s data privacy practices in 2021, among others. The proposed legislation seeks to strengthen existing privacy protections and prevent further abuses of consumer data.
In a joint statement, Senators Cantwell and Rodgers hailed the draft legislation as a historic opportunity to establish a national data privacy and security standard. They emphasized provisions granting individuals the right to control their personal information, including the ability to opt out of data processing and affirmative consent requirements for sensitive data transfers.
The bill also includes measures to address algorithmic risks, particularly concerning discrimination and harm to vulnerable groups, such as youth. Annual reviews of algorithms would be mandated to mitigate these risks and safeguard individuals from potential harm arising from algorithmic decision-making processes.