The bipartisan bill, introduced in April 2024, is the latest attempt at passing a federal privacy law in the US. It aims to put individuals in control of their data and eliminate the patchwork of state laws
Alexis Kateifides
Director, Regulatory Intelligence
April 10, 2024
On April 7, 2024, representatives from the US House and Senate introduced a draft federal privacy law that would grant individuals greater control over their personal information, define processing principles, and set out a range of consumer rights, among other things. The American Privacy Rights Act (APRA) represents the latest attempt at passing a federal privacy law since the American Data Privacy and Protection Act (ADPPA) failed to make it to a vote on the House floor in June 2022. The APRA includes a provision that would see it preempt the growing patchwork of state-level privacy legislation.
In a press release, House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) and Senate Commerce Committee Chair Maria Cantwell (D-WA) said, “This bipartisan, bicameral draft legislation is the best opportunity we’ve had in decades to establish a national data privacy and security standard that gives people the right to control their personal information […] It strikes a meaningful balance on issues that are critical to moving comprehensive data privacy legislation through Congress […] This landmark legislation gives Americans the right to control where their information goes and who can sell it.”
Calls for a federal privacy law in the US have been increasing since the introduction of the California Consumer Rights Act (CCPA) kick-started a wave of state-level legislation aimed at giving consumers greater rights over the use of their personal information. Most recently, New Jersey, New Hampshire, and Kentucky have added their names to the ever-growing list of states with comprehensive state privacy laws with Maryland sending its privacy bill to the Governor for signature.
This patchwork has made navigating privacy in the US a complex challenge and there have been several attempts to pass a federal privacy law over the years to simplify the equation. The most recent attempt was the bipartisan ADPPA that was introduced in early 2022 and was tipped as having genuine potential to become law. Like many that came before, the ADPPA fell short of reaching the House floor in June 2022 with many citing issues with state law preemption.
The APRA is the latest bipartisan attempt at embedding privacy and security requirements at a federal level – enshrining consistent consumer protections and individual rights across state borders. There is an intricate path ahead for the APRA if it were to make its way into law and would require greater agreement on a range of issues – such as the preemption of state law – that hampered the ADPPA.
The APRA offers many familiar concepts as part of its 53-page draft with the central aims of eliminating differing concepts across state borders and giving consumers greater control over their personal information. The APRA includes requirements relating to data minimization, transparency, and security provisions as well as enhanced requirements for data brokers and the establishment of a national data broker registry.
The APRA introduces a recognizable set of consumer rights including:
The right to access
The right to correction
The right to deletion
The right to data portability
There is also a right to opt out that would allow consumers to opt out of certain data transfers, to opt out of decisions made using algorithms, and to opt out of targeted advertising. The law would call for a centralized mechanism for consumers to exercise their consent and opt-out preferences that recognize universal signals and businesses would not be able to deny a service as a result of individuals exercising their rights.
In addition to the above requirements, the APRA will require businesses to designate one or more qualified employees to serve as privacy or data security officers. Such designated officers will be responsible for implementing privacy and security programs in line with the requirements of the APRA and for ensuring compliance with the law.
Enforcement will be overseen by the Federal Trade Commission (FTC) with a dedicated bureau scoped to be established within the FTC no later than one year after the APRA is enacted.
One issue that has blighted previous attempts to pass federal privacy legislation is the matter of preemption. This has been a sticking point, particularly in California, where talks over the ADPPA broke down in 2022 citing that the ADPPA "does not guarantee the same essential consumer protections as California’s existing privacy laws.”
In response to the APRA, the Executive Director of the California Privacy Protection Agency (CPPA), Ashkan Soltani issued a statement; “Americans shouldn’t have to settle for a federal privacy law that limits states’ ability to advance strong protections in response to emerging threats in policy – particularly when Californians’ fundamental stakes are at stake. Congress should set a floor, not a ceiling”
The APRA will expressly maintain a preemption provision to try and ensure a consistent privacy and security standard across the US as well as minimizing the costs and burdens placed on organizations conducting interstate business. There are, of course, exceptions including state-level consumer protection laws of general applicability, civil rights laws, and laws that address the privacy rights or other protections of employees or employee information, among others. The APRA also includes exceptions related to the Gramm-Leach-Bliley Act (GLBA) and the Health Insurance Portability and Accountability Act (HIPAA), among other federal laws that include privacy and security rules.
As stated, there is a long road ahead for the APRA including the preemption hurdle to overcome. However, US Representative Cathy Rodgers and US Senator Maria Cantwell have described the act as, "The best opportunity we've had in decades to establish a national data privacy and security standard.” Should the APRA make its way through the House and Senate before being enacted into law, it would be effective 180 days after its enactment and the FTC would be required to report on the law’s effectiveness four years after. For now, more and more states are passing privacy laws and will require the attention of covered businesses. As for the APRA, the prospect of a federal law – like always – remains under discussion and could find a similar fate to the federal bills that came before.
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