From Project Liberty <[email protected]>
Subject Policy breakthrough? The US nears a historic privacy law
Date May 14, 2024 2:18 PM
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We explore the potential for the American Privacy Rights Act to become federal law

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Policy breakthrough? The US nears a historic privacy law

Of the world’s 195 countries, 137 have national privacy legislation ([link removed] ) . The US is not one of them.

However, it’s possible that could change.

Experts believe a new bill with bipartisan support has one of the best chances of becoming a landmark law that could establish sweeping new privacy rights for Americans.

This week, we explore the American Privacy Rights Act: its champions, critics, details, and the likelihood it will become law.

// American Privacy Rights Act (APRA)

Last month Senator Maria Cantwell (D-Wash) and Congresswoman Cathy McMorris Rodgers (R-Wash) proposed a bill that has lawmakers feeling “fired up ([link removed] ) .”

The bill establishes new federal restrictions on how companies can collect, use, and transfer data on the internet, as well as new federal rights for consumers to manage their data and hold companies accountable.

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APRA is the first federal privacy bill to gain notable bipartisan and bicameral support.

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// Major benefits for consumers

If passed, the legislation would provide major benefits for consumers:

- It allows users to opt out of data practices ([link removed] ) like targeted advertising.
- It prevents companies from collecting data that is not “necessary” or “proportionate” ([link removed] ) to the purpose for which the data is collected.
- Groups that collect data would be required to disclose ([link removed] ) the data they have collected and give consumers the right to edit or delete it.
- It allows individuals to sue companies ([link removed] ) if companies fail to either obtain consent before collecting sensitive data or fail to fulfill the data deletion requests (the ability for individuals to sue has never been allowed before).
- Platforms are prohibited from using algorithms and data collection practices that are discriminatory ([link removed] ) on the basis of race, color, religion, national origin, sex, or disability.

// Major breakthrough for lawmakers

Spearheaded by a Republican in the House and a Democrat in the Senate (who are the respective chairs of the House and Senate Commerce Committees ([link removed] ) ), the bill is notable because it is the first federal privacy bill ([link removed] ) to gain notable bipartisan and bicameral support ([link removed] ) .

Last year, this bill’s predecessor, the American Data Privacy and Protection Act (ADPPA), went further than any previous privacy bill but never made it to a House floor vote.

// Breaking the partisan logjam on two core issues

The proposed legislation also represents a major breakthrough for lawmakers who have struggled to pass a national privacy law due to disagreement over two core issues:

- Whether a new federal law should override state data privacy laws that are already in place.
- Whether consumers should be allowed to sue companies directly that violate their privacy in civil suits.

For APRA, the answer is yes in both cases.

// Concerns

Some critics believe that the bill has only been able to to garner bipartisan support and navigate around issues that were previously insurmountable because it has major flaws.

// Complication #1: states' rights

The most contentious issue of the APRA is how the proposed legislation would override ([link removed] ) over a dozen existing state laws on data privacy ([link removed] ) , some of which are more comprehensive than what’s outlined in the bill.

For example, the Electronic Frontier Foundation ([link removed] ) expressed concerns that the new federal bill would prevent states from creating stronger protections in the future and freeze consumer data privacy protections in place.

“Federal law should be the floor on which states can build, not a ceiling...The ability to pass stronger bills at the state and local level is an important tool in the fight for data privacy,” EFF published recently in comments about APRA ([link removed] ) .

Fifteen state attorneys general ([link removed] ) also shared the concern that the APRA could undercut states’ privacy bills, calling Congress to prevent the bill from preempting state consumer privacy laws.

// Complication #2: broad compliance

APRA’s restrictions would apply to the biggest tech companies, as well as across the private sector to any medium or large organization that handles data, including large nonprofits.

This has raised concerns ([link removed] ) about the cost of compliance for smaller companies and the unintended consequence of giving larger firms who can afford to comply an advantage over upstarts.

Of note, small businesses ([link removed] ) with less than $40 million in revenue and with data on fewer than 200,000 consumers would be exempt.

Whether these complications will prevent the passing of the bill remains to be seen, but they’re substantive enough for lawmakers to tweak the language to ensure they are not obstacles.

// Is this the big one?

This is an ambitious bill for a congress that has struggled to pass bills (this particular congress has been the least productive congress ([link removed] ) since the Great Depression).

The bill has a long way to go, but there’s reason to believe it doesn’t need to be perfect to be passed. The Children’s Online Privacy Protection Act ([link removed] ) (COPPA), which was passed in 1998, was broadened and updated in 2013.

For those who might believe APRA doesn’t go far enough, they might find solace in the example of COPPA being strengthened over time. APRA can serve as both a policy foundation upon which further improvements can be made and a precedent that could spur further action at all levels of government.

Project Liberty in the news

// Founder Frank McCourt joined the Behind the Code: Web3 Thinkers podcast to discuss feudal history, humanity's move to freedom, modern enslavement from the design of the internet, Blockchain solutions, Project Liberty, and Our Biggest Fight. Watch the video here ([link removed] ) .

Other notable headlines

// 🇨🇳 Lawmakers have suggested that the Chinese internet is better for kids, but an article in The Atlantic ([link removed] ) argued that they’re wrong.

// 🤖 An article in The Markup ([link removed] ) featured a conversation with journalist Jonathan Soma on the power and pitfalls of AI and chatbots.

// 🕵 A surge of companies claims to offer hyper-accurate detection services for AI content, but their capabilities are largely untested, according to an article in The Washington Post ([link removed] ) .

// 🖥 Quality internet isn’t ubiquitous. With the Affordable Connectivity Program at risk of ending, lower-income families could lose internet access, according to an article on Chartr ([link removed] ) .

// ⚖ Neither social media platforms nor the law are equipped to handle the negative effects of their algorithms abroad, according to an article in Vox ([link removed] ) .

// 🏛 A college professor wants to use Section 230 against Big Tech. An article in The Washington Post ([link removed] ) broke down the lawsuit.

// 🎮 An article in Axios reported ([link removed] ) on new Pew Research on how teenage gamers believe video games help them build problem-solving skills, make friends, and collaborate.

Partner news & opportunities

// Hack the Capitol event

May 30-31st, Washington DC

Hosted by The Institute for Security and Technology ([link removed] ) , Hack the Capitol is a cybersecurity conference in Washington DC focused on the security of industrial control systems. The event provides policymakers, think tanks, and the media with an opportunity to listen to leading voices in cybersecurity. Register here ([link removed] ) (also on livestream).

// Grant opportunity: $100,000 for governance tools

MetaGov ([link removed] ) is issuing a request for proposals for new and existing tools for deliberation and governance, with a focus on interoperability. The opportunity is open to technologists, policy experts, or governance enthusiasts. Apply by May 31st here ([link removed] ) .

// Recording on the future of collaborative technology & democracy

Harvard’s Ash Center for Democratic Governance and Innovation ([link removed] ) published the recording of a workshop with Glen Weyl who discusses Plurality: The Future of Collaborative Technology and Democracy: an open book project that imagines a future of technology focused on empowering and bridging social difference. Watch here ([link removed] ) .

// Eticas Foundation is hiring a Research Assistant

Eticas Foundation ([link removed] ) is seeking a Research Assistant (Ethics & Tech Intern) to join their team. Get the chance to delve into the intersection of ethics and technology. Apply here ([link removed] ) .

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