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U.S. Congress Pushes for a New Federal Privacy Law

Client Updates / Apr 30, 2024

Written by: Haim Ravia and Dotan Hammer

The Chairs of the U.S. Senate’s Commerce Committee and U.S. House of Representatives Energy Committee introduced the American Privacy Rights Act, a proposal for a unified federal data privacy bill that establishes privacy protections for Americans, supersedes state laws, and includes enforcement measures with individual rights to sue.

The proposed law seeks to establish various measures, including –

  • Replacement of the patchwork of state laws with a stronger national privacy standard.
  • Limiting data collection to only what is essential for providing products and services.
  • Giving Americans the right to control their personal data, prevent the sale of their personal data, and opt out of data processing during changes to a company’s privacy policy.
  • Requiring explicit consent before transferring sensitive data.
  • Offering opt-out choices from targeted advertising and algorithm-based decisions in critical areas such as housing and employment.
  • Mandating robust data security to prevent theft and ensure corporate accountability.

Additionally, the act would also prohibit mandatory arbitration in cases of significant privacy violations, allowing individuals to sue for damages.

Click here to read the draft of the American Privacy Rights Act.