Key federal lawmakers have introduced a comprehensive proposal that would grant consumers extensive control over their personal data, marking a major breakthrough in the long-standing battle for national online privacy protections.
What Happened: The bipartisan proposal, named the American Privacy Rights Act, was revealed by Senate Commerce Committee Chair Maria Cantwell (D-Wash.) and House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-Wash.) on Sunday.
The proposal could establish a national standard for how companies can collect, use, and transfer data online. It would also give users the right to opt out of certain data practices, including targeted advertising, and require companies to collect only as much information as necessary to offer specific products to consumers. Additionally, it would allow individuals to access, delete, and transfer their data between digital services.
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The proposal would resolve two long-standing issues: whether a federal law should override state laws and whether consumers should be allowed to sue companies that violate the rules. It would preempt more than a dozen state privacy laws while allowing state rules on specific issues like health or financial data to remain.
“This landmark legislation gives Americans the right to control where their information goes and who can sell it. It reins in Big Tech by prohibiting them from tracking, predicting, and manipulating people's behaviors for profit without their knowledge and consent,” said Chair Rodgers.
Highlights Of The Proposal: The new legislation mandates companies to minimize and disclose their data collection practices, enabling users to rectify or delete their own data, and prohibiting discrimination based on protected classes. Additionally, it requires companies to designate executive officers responsible for ensuring compliance.
However, it doesn’t include a delay in individuals’ lawsuit filings and restricts arbitration agreements that impede the legislation’s purpose. The proposal would also not prohibit companies from targeting minors with ads, reported The Washington Post.
Why It Matters: Despite the support of Cantwell and Rodgers, the proposal’s prospects remain uncertain. It is a “discussion draft,” and the two committee chairs are likely to seek input from other lawmakers and outside groups before formally introducing it.
Having said that, the proposal is part of a recent surge of activity on new internet policies. In February, consumer groups in the EU filed complaints against Meta Platforms Inc. META for engaging in massive, illegal data processing. In March, the House passed legislation to force ByteDance-owned TikTok to be sold by its Chinese parent or be banned in the U.S., kicking the issue over to the Senate.
Previously, it was reported that despite assurances to the contrary, Google has been monitoring user activity even in Incognito Mode. In January, Google revised the disclaimer on the new tab page for incognito mode windows to explicitly state that it continues to track user activity in incognito mode.
“Others who use this device won't see your activity, so you can browse more privately,” the disclaimer read.
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Read Next: Google Agrees To $5B Settlement In Consumer Privacy Lawsuit Over Alleged Clandestine Tracking
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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