Bipartisan Draft of National Data Privacy Bill Gets First Hearing

The bill would ensure start-ups and small businesses can grow and compete, and would require covered entities to minimize individuals’ data they need to collect on the front end. ACA is reviewing the legislation for its impact on the industry.

06/13/2022 2:00 P.M.

3 minute read

Lawmakers on both sides of the aisle have released a draft bill focused on comprehensive data privacy and will hold a legislative hearing for discussion on the proposal at 10:30 a.m. EST June 14.

U.S. Reps. Frank Pallone Jr., D-N.J. and Cathy McMorris Rodgers, R-Wash., chairman and ranking member of the House Committee on Energy and Commerce, and U.S. Sen. Roger Wicker, R-Miss., ranking member of the Senate Committee on Commerce, Science, and Transportation, released the discussion draft of a comprehensive national data privacy and data security framework last week, ACA International previously reported.

The draft legislation is the first comprehensive privacy proposal to gain bipartisan, bicameral support, according to a news release, and has been years in the making.

“In the coming weeks, we will be working with our colleagues on both sides of the aisle to build support and finalize this standard to give Americans more control over their personal data,” Pallone, Rodgers and Wicker said.

The bill is a “meaningful balance” on data privacy issues that are critical to advancing the legislation through Congress.

Covered entities in the discussion draft are broadly defined and include any entity under jurisdiction of the Federal Trade Commission as well as nonprofits and common telecommunications carriers.

“The [a]ct takes a material step forward in privacy regulation in that it does not rely exclusively on the notice and consent regime generally employed by state privacy laws,” according to the draft. “Covered entities may not collect, process, or transfer covered data beyond what is reasonably necessary, proportionate, and limited to provide specifically requested products and services or communicate with individuals in a manner they reasonably anticipate.”

The bill would be enforced by the FTC, state attorneys general and a private right of action. The private right of action would start four years after the bill takes effect and allow “persons or classes of persons [to] bring a civil action in federal court seeking compensatory damages, injunctive relief, declaratory relief, and reasonable attorney’s fees and litigation costs for most provisions of the [a]ct.”

Tuesday’s hearing, “Protecting America’s Consumers: Bipartisan Legislation to Strengthen Data Privacy and Security” will be held in the House Subcommittee on Consumer Protection and Commerce.

“We believe strongly that this standard represents the best opportunity to pass a federal data privacy law in decades, and we look forward to continuing to work together to get this bill finalized and signed into law soon,” Pallone, Rodgers and Wicker said in the news release.

The American Data Privacy and Protection Act would:

  • Establish a strong national framework to protect consumer data privacy and security.
  • Grant broad protections for Americans against the discriminatory use of their data.
  • Require covered entities to minimize, on the front end, individuals’ data they need to collect, process, and transfer so that the use of consumer data is limited to what is reasonably necessary, proportionate, and limited for specific products and services.
  • Require covered entities to comply with loyalty duties with respect to specific practices while ensuring consumers don’t have to pay for privacy.
  • Require covered entities to allow consumers to turn off targeted advertisements.
  • Provide enhanced data protections for children and minors, including what they might agree to with or without parental approval.
  • Establish regulatory parity across the internet ecosystem.
  • Promote innovation and preserve the opportunity for start-ups and small businesses to grow and compete.

ACA International’s Federal Affairs Committee is reviewing the legislation and ACA will soon be providing more details on our thoughts on how it impacts the accounts receivable management industry.

Click here to read the discussion draft bill text.

Click here to read a section-by-section on the discussion draft.

If you have executive leadership updates or other member news to share with ACA, contact our communications department at [email protected]. View our publications page for more information and our news submission guidelines here.





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