House Republicans Unveil Secure Data Act Draft on Consumer Privacy

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.
People
Brett GuthrieHouse Energy and Commerce Committee chair who, with John Joyce, stated support for the draft Secure Data Act.Cobun Zwiefel-KeeganInternational Association of Privacy Professionals managing director who assessed the draft’s provisions and discussed its potential effects and political prospects.Cody VenzkeAmerican Civil Liberties Union senior staff attorney who criticized the draft’s opt-out burden on consumers and lack of recourse.Eric NullCenter for Democracy and Technology privacy and data project director who criticized the draft’s loopholes and its treatment of AI-related privacy risks.Frank PalloneHouse Energy and Commerce Committee ranking member who opposed the draft and criticized its approach to consumer protections.John JoyceLed the House Republican working group that developed the draft bill and jointly voiced support for advancing it with Brett Guthrie.
Industries
advertisingRepublicans unveiled the Secure Data Act, a draft bill that would let consumers opt out of targeted advertising, sales, and automated decisionmaking, require notice and data portability, impose limits on dataTechnologyEric Null, director of the privacy and data project at the Center for Democracy and Technology, indicated that the Secure Data Act falls short, calling it full of “easily exploitable loopholes” that let companies “hide
