The Maryland Legislature recently passed two comprehensive privacy bills, despite objections from industry trade groups representing tech giants. The Maryland Online Data Privacy Act and the Maryland Kids Code aim to restrict how companies can collect and use personal data of consumers and young people in the state. The consumer bill would impose restrictions on data collection and use, while the children’s bill prohibits certain online platforms from tracking individuals under 18 and using manipulative techniques to keep young people online. Delegate Sara Love described the passage of the bills as a significant privacy milestone, emphasizing the need to protect consumers and put up guardrails against excessive data gathering.
The new rules must be approved by Governor Wes Moore, a Democrat, who has not publicly stated his position on the measures yet. Maryland joins a small group of states that have enacted comprehensive privacy legislation, including laws targeting children’s online privacy or social media. However, the tech industry has challenged some of these laws, with NetChoice arguing that restrictions violated constitutional rights to distribute information freely. The Maryland Kids Code is modeled after a California law and includes provisions such as defaulting to the highest privacy settings for minors and prohibiting unnecessary profiling or collection of precise locations. NetChoice has expressed objections to the Maryland Kids Code, citing concerns about free speech and distribution of information.
In California, a federal judge temporarily blocked the children’s code law on free speech grounds, ruling in favor of NetChoice. However, Maryland lawmakers have worked with constitutional experts to address free speech concerns in the bill. The bill passed unanimously in Maryland, with Delegate Jared Solomon highlighting the importance of withstanding any court challenges that may arise. The tech industry trade groups have also strongly opposed the Maryland Online Data Privacy Act, which would require companies to minimize data collection and restrict the sharing of intimate personal information unless necessary. The bill aims to protect personal data, including data on ethnicity, religion, health, sexual orientation, location, biometrics, and immigration status.
NetChoice, a tech industry trade group representing major companies like Amazon, Google, and Meta, has not responded to requests for comment on the bills. The tech industry has previously challenged similar laws in other states, arguing that restrictions on data collection and use infringe on their rights to distribute information freely. Maryland lawmakers believe the two privacy bills are crucial in reining in data gathering practices and protecting consumers. The passage of these bills marks a significant step towards safeguarding personal data and addressing concerns about data privacy in the digital age. Governor Moore’s decision on the bills will determine their implementation and potential impact on tech companies operating in Maryland.
