Proposed Federal Bill Would Preempt State Laws On Digital Privacy

Some states are moving ahead with their own regulations regarding internet privacy. As proposals for federal action pop up, a congresswoman has put together a bill that would create a national standard — but would forbid states from improving on the U.S. rules.

U.S. Rep. Suzan DelBene (D-Wash.) has reintroduced her bill, which would pre-empt state laws while setting up a uniform U.S. standard, CNBC reported. DelBene has said that state-by-state rules governing digital privacy would be too “confusing and onerous” for both consumers and small businesses.

Meanwhile, bills introduced by other Democrats would instead allow states to build on the privacy protections laid out in federal law. In addition, Virginia last week enacted its own data privacy law, and California had previously approved one.

“I understand why states are moving forward in the absence of the federal government moving, but I think it is much better to have a federal law versus a patchwork of laws,” DelBene said. Her bill exempts small businesses from regular audits of their privacy practices, CNBC reported.

The bill hones in on the most essential privacy protections, with more stringent rules surrounding sensitive data like medical information and Social Security numbers as opposed to less sensitive information like names and email addresses. Furthermore, consumers must opt-in to allow a company to sell or share their sensitive personal information.

DelBene said the law should serve as a baseline that can be built upon, with more specific bills to govern such areas as artificial intelligence (AI) and facial recognition technology.

Privacy concerns aren’t the only issues Big Tech firms are facing. Also on the horizon are state actions on taxation. Last month, Maryland lawmakers enacted a new tax on digital advertising revenue, overriding the governor’s veto. The tax on sales of digital ads — and not just on the sales of products referenced in the ads — is structured to reap more proceeds from larger online players, such as Amazon, Google and Facebook. Advocates and opponents alike agree that the measure would raise about $250 million annually for the state.

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