The U.S. Moves a Step Closer to a Federal Privacy Law

House and Senate committee leaders released a bipartisan draft on online data privacy on Friday, hinting at the first sign of movement after years of stalled negotiations. The legislation, which may be called “American Data Privacy and Protection Act,” would require digital companies to reduce the data they collect, ban targeted advertising to children under 17 years of age and give people the power to sue companies for violations, such as unfair or deceptive practices under the FTC. The company will have 45 days to address the violations. “This bipartisan and bicameral effort to produce a comprehensive data privacy framework has been years in the making, and the release of this discussion draft represents a critical milestone,” U.S. representatives Frank Pallone and Cathy McMorris Rodgers and chairman and ranking member of the House Committee on Energy and Commerce Roger Wicker, said in a statement. Sources have previously told Adweek that a federal privacy law is needed to make statewide privacy compliance and cost easier on advertisers. The U.S has been lax in establishing national privacy rules where President Biden previously has indicated the need for one. This bipartisan effort shows signs of movement despite the midterm elections in November. Opting out of ads, data collection The legislation aims to establish a strong framework that would require companies to allow people to opt out of targeted ads while tasking the FTC with creating a way for people to opt out of ads across websites. Further, the FTC will be required to create a public registry of data brokers and allow people to opt out of data collection practices through a “Do Not Collect” feature. If a third party fails to register, a civil penalty of $50 for each day of failure to register will be levied or an amount equal to the registration fee of $100 will be charged. The bill also includes the protection of sensitive data such as biometric data, geolocation information and medical information. Further, sharing a person’s internet browsing history or physical activity information from a smartphone or wearable device without consent will be restricted. “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. Virginia Passes Data Privacy Law, Reigniting Calls for a Federal Solution