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A Federal Privacy Bill - Pros and Cons

September 14, 2022
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A proposed American Data Privacy and Protection Act has been introduced in Congress with the goal of a single national consumer data privacy standard, enforced by the Federal Trade Commission.

The advantage of a national standard would be to eliminate differences between state privacy regulations. The disadvantage is that consumers in states with stronger data protection laws such as California would lose those protections in the bill's present form. Those states want a federal law to be a baseline and not preempt stronger state laws. Privacy advocates also warn there may be unintended consequences of higher coasts for small companies to meet new regulations.

The bill is unlikely to pass in its present form. Its fate in the next Congress may depend on the outcome of the election.