New bill could establish national consumer privacy framework

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Consumer data privacy proposal overview: 

• Who: Three congressional leaders filed a bipartisan proposal last week. 
• Why: The proposal would create the American Data Privacy and Protection Act, which would set a federal standard for consumer data privacy. 
• Where: Representatives from New Jersey, Washington and Mississippi made the proposal. 

Three members of Congress proposed a bipartisan data privacy bill aiming to establish a framework for national consumer privacy last week. 

The goal of the proposed bill, called the American Data Privacy and Protection Act, is to create a federal standard for how a company is able to keep, share and use the private data of consumers, according to a discussion draft released June 3.

House Commerce Committee Chair Frank Pallone, D-N.J.; Ranking Member Cathy McMorris Rodgers, R-Wash.; and Senate Commerce Committee Ranking Member Roger Wicker, R-Miss., wrote the bill, Law360 reports. 

The reveal comes as states have been working to create their own laws that would give consumers more control over how their personal information is shared. 

If passed, the American Data Privacy and Protection Act would allow consumers to access, delete and correct their own personal information and improve data privacy protections for both children and teens, according to the discussion draft.

Bill would allow consumers to file lawsuits against companies that violate privacy

Consumers also would have the ability to file a legal complaint against companies beginning four years after the law is passed so long as they notify federal and state regulators of their plan to file a lawsuit, according to the draft.

One main point of contention when passing federal measures has been whether consumers should be able to file lawsuits against companies they believe violate their privacy, Law360 reports.  

Lawmakers have also disagreed on the question of whether federal laws would preempt some of the more rigid state laws. The proposed act would preempt broad privacy laws set by the states but not laws that are more targeted and specific, Law360 reports.

Sen. Maria Cantwell, D-Wash., chair of the Senate Commerce Committee, has so far not lent her support for the proposal. Cantwell previously attempted to introduce legislation in 2019 that would have given consumers the ability to see, correct and delete personal information collected by a company, Law360 reports. 

In related data privacy news, last month, the Federal Trade Commission warned education technology companies that the agency plans to fully enforce data privacy laws meant to protect the privacy of students. 

Do you believe consumers should have more control over their personal information? Let us know in the comments. 

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