A federal data privacy law has long been an elusive goal, but two Washington lawmakers, Rep. Cathy McMorris Rodgers (R-Wash.) and Senator Maria Cantwell (D-Wash.), have released a discussion draft of their bill, the American Privacy Rights Act. The proposed legislation aims to limit the data companies can collect and create consumer data rights, including the right to sue for privacy violations. It also seeks to establish a national standard and preempt existing state laws, with enforcement responsibilities shared by state attorneys general and the Federal Trade Commission.
The sponsorship of McMorris Rodgers and Cantwell is significant as they lead the committees of jurisdiction in the House and Senate, respectively. However, the bill does not appear to be on a fast track to becoming law, with resistance from some key lawmakers. Rep. Frank Pallone has expressed a need for changes, while Senator Ted Cruz has taken a negative stance, particularly opposing consumer lawsuits for privacy violations. This resistance could hinder the bill’s progress, potentially leading to its demise before it gains traction.
The legislative process for the bill is expected to involve committee hearings and markups in both chambers, with a lengthy timeline that could extend past the August recess. This may push the legislation’s best chance of passage to the lame duck session at the end of the year, where it could potentially be attached to a must-pass measure. McMorris Rodgers, who is retiring at the end of the session, is likely to push hard for the bill’s success, seeking legislative victories before leaving office.
As federal efforts for data privacy legislation continue, states like Maryland are taking action independently. Maryland recently passed two data privacy bills, one restricting data collection and use by companies and another imposing stricter regulations for users under 18. Governor Wes Moore has yet to sign the proposals, which have faced opposition from the tech industry. These state-level initiatives may serve as a template for other states looking to implement tougher data privacy rules if the federal legislation falls short.
The passage of Maryland’s data privacy bills could pave the way for stricter state regulations and provide guidance for other lawmakers seeking to address data privacy issues. However, the fate of these state-level initiatives and their potential legal challenges will depend on Governor Moore’s decision. In the meantime, federal lawmakers continue to navigate the complexities of passing a comprehensive data privacy law, with potential obstacles from both within their own parties and from external stakeholders.
While the path to a federal data privacy law remains uncertain, the efforts of McMorris Rodgers and Cantwell to advance the American Privacy Rights Act represent a significant step towards establishing a national standard for data privacy. As the legislative process unfolds, stakeholders will be closely watching the bill’s progress and potential impact on consumer data rights and regulations at both the federal and state levels.
