State Privacy Laws Show the SECURE Data Act’s Merits and Political Appeal | Blogs

Source Domain: itif.org

For decades, the United States has relied on a patchwork of sector-specific and state laws to govern data privacy. Various attempts at comprehensive federal privacy legislation have stalled in Congress, largely due to conflict on key issues, including federal preemption and a private right of action. The House Financial Services Committee and House Energy and Commerce Committee announced a joint effort in April to advance a new privacy bill, the SECURE Data Act. While this bill would preempt state privacy laws, it also draws heavily from those laws, reflecting a bipartisan, multistate consensus on key privacy provisions that would protect consumers while enabling innovation that bolsters the U.S. economy.

Critiques of the SECURE Data Act assume that stronger-sounding provisions necessarily produce better outcomes. Critics point to its less restrictive data minimization framework, lack of a private right of action, and preemption of state laws as provisions that will fail to adequately protect consumers. Furthermore, the SECURE Data Act was the result of a “unified House Republican effort,” but gaining Democrats’ support remains a key barrier to the bill’s passage, and these provisions will likely be the biggest sticking points. However, looking to state privacy laws proves critics’ assumptions wrong and presents a path forward for the SECURE DATA Act, both on the merits of the bill and its political appeal.

First, the SECURE Data Act avoids importing the more restrictive data minimization framework of the European Union’s General Data Protection Regulation (GDPR), which even European policymakers admit needs reform. Data collection is not inherently harmful to consumers; in fact, many forms of data collection benefit consumers by improving the services Americans rely on every day. That translates to more personalized health care, more efficient energy usage, and more reliable transportation. The SECURE Data Act preserves more of these beneficial use…

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