Lawmakers Release Bipartisan Draft of National Data Privacy Bill

The bill would ensure start-ups and small businesses have the opportunity to grow and compete and would require covered entities to minimize individuals’ data they need to collect on the front end.

06/06/2022 11:45 A.M.

2 minute read

Lawmakers on both sides of the aisle have released a draft bill focused on comprehensive data privacy.

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 Friday.

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.

“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.

The discussion draft will likely be reviewed at a subcommittee hearing the week of June 13.

ACA International’s Federal Affairs Committee will be 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.

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