Two key lawmakers have reached a deal on bipartisan data privacy legislation that would restrict consumer data that technology companies can collect.
The new laws will give Americans the power to prevent selling of personal information or compel its deletion.
The agreement between Democratic Senator Maria Cantwell, who chairs the Commerce Committee, and Representative Cathy McMorris Rodgers, Republican chair of the House Energy and Commerce Committee, would give individuals control over use of their personal information and require disclosure if data has been transferred to foreign adversaries.
Crucially, the agreement would address two longstanding issues that have hindered negotiations for an extended period: whether federal legislation should supersede existing state laws and whether consumers should have the right to sue companies for violating privacy regulations.
The proposed bill would accomplish a key Republican objective by preempting more than a dozen “comprehensive” state privacy laws that have emerged due to the lack of action by Congress, including the significant California legislation.
However, it would still allow states to maintain their own regulations on specific matters such as health or financial data.
Additionally, it would introduce a mechanism favored by Democrats: the ability for individuals to file civil lawsuits seeking monetary compensation if companies fail to honor data deletion requests or obtain explicit consent before collecting sensitive information.
Senator Cantwell emphasized the necessity of establishing clear boundaries to hold accountable those who misuse data in the digital era.