Progress toward a US Federal Privacy Law Continues

Why This Privacy Law is Important:

The biggest challenge to privacy compliance in the US is the patchwork of state-level laws. In recent weeks, the American Data Privacy and Protection Act (ADPPA) has made progress in Congress, leading to renewed hope that a federal law will be passed.

Overview:

The ADPPA has progressed further in the federal legislative process than any other data privacy regulation in history. While there are still many hurdles to be cleared, it has earned bipartisan support in both the House and the Senate. If passed, it would transform the privacy landscape of the US.

The House Committee on Energy and Commerce voted overwhelmingly to advance the bill to a vote in the full House, the first time a comprehensive privacy bill has reached the floor of either the House or Senate. The main obstacle the law faces is the fact that it would preempt state laws, which currently exist in five states (California, Colorado, Connecticut, Utah, and Virginia). ADPPA would not preempt federal laws like COPPA. Unlike most state laws, ADPPA does provide a private right of action for citizens.

Who it Applies to:

The vast majority of businesses and nonprofits in the United States would be covered by ADPPA, which defines covered entities as “entity or person that collects, processes, or transfers data and is subject to the Federal Trade Commission Act, is a common carrier under the Communications Act, or is a non-profit.”

Large data holders (think tech companies here) with over $250 million annual revenue, who process data of over 5 million individuals (excluding things like emails or phone numbers), or process sensitive data of over 200,000 people annually would be subject to additional disclosure, certification, and audit requirements.

Download the Privacy Alert to the right to get the full text and expert analysis!