Washington lawmakers Rep. Cathy McMorris Rodgers and Senator Maria Cantwell have introduced a discussion draft of a federal data privacy legislation called the American Privacy Rights Act. This proposal aims to limit the collection and use of data by companies, as well as establish consumer data rights, including the ability to sue companies for privacy violations. The legislation would preempt existing state laws and create a national standard for data privacy, with enforcement by state attorneys general and the Federal Trade Commission. The tech industry has shown a preference for a national standard to ease compliance challenges.
Sponsorship of the bill by McMorris Rodgers and Cantwell, who lead the committees of jurisdiction in the House and Senate, respectively, is significant. In the past, a similar bill faced opposition from Cantwell and failed to pass. The current bill is not on a fast track to becoming law, with ranking members Rep. Frank Pallone and Senator Ted Cruz not heavily involved in the drafting process. Cruz, in particular, has expressed resistance to the bill, citing concerns about consumer lawsuits for privacy violations and empowering the FTC. If the bill does move forward, it will likely go through committee hearings and markups in both chambers.
The legislative process for the data privacy bill is expected to be lengthy and may stretch past the August recess, potentially being considered during the lame-duck session at the end of the year. McMorris Rodgers, who is retiring at the end of the session, is likely to push for the bill’s passage before leaving office. Additionally, another data privacy bill restricting data brokers’ ability to sell to foreign adversaries passed the House but faces uncertainty in the Senate. States are also taking action on data privacy, with Maryland passing two bills focused on restricting data collection and usage, especially for users under 18.
The Maryland legislation may serve as a template for other states looking to impose stricter data privacy regulations. However, the fate of state-level data privacy laws may be impacted by the federal bill introduced by McMorris Rodgers and Cantwell. As states continue to act on data privacy, the federal proposal may set the tone for future regulations. The tech industry has expressed opposition to the Maryland bills, and legal challenges are possible if they are signed into law. The federal bill faces challenges in garnering support from both Democrats and Republicans and may need to undergo significant changes before moving forward.
