House Republicans Unveil Secure Data Act Draft on Consumer Privacy

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Summary

House Republicans unveiled a draft Secure Data Act that would set consumer data rights, limit collection, require safeguards and expand FTC oversight of data brokers. Critics say it preempts stronger state laws and leaves enforcement and AI privacy gaps.

Key points

  • The draft would let consumers opt out of data use for targeted advertising, third-party sales or automated decisionmaking.
  • It would require notice when personal data is collected or used, portable copies of data, and parental consent rights for teenagers' data.
  • Businesses would have to limit collection to data that is adequate, relevant and reasonably necessary, adopt safeguards, and disclose third-party sharing.
  • The bill would require data brokers to register with the FTC and comply with data-minimization, disclosure and security rules.
  • Critics say the draft would preempt stronger state privacy laws, lacks a private right of action and gives companies a 45-day period to cure violations.
  • Critics also argue the draft has exploitable loopholes and insufficiently addresses AI-related privacy risks.

Article Details

Event Type
House Republicans released a draft national privacy bill, the Secure Data Act.
Impact
If enacted, the bill would create consumer opt-out, notice, data-portability, and parental-consent rights; limit data collection; and expand Federal Trade Commission oversight of data brokers. Critics say it could preempt stronger state protections, lacks a private right of action, allows a 45-day compliance period before sanctions, and does not adequately address AI-related privacy risks. The article describes a draft bill, not an enacted law.

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