Business Groups Demand Major Revisions to Proposed Data Privacy Bill

Business and advertising groups are pressing for substantial revisions to a significant data privacy bill set for markup on Thursday. House Energy and Commerce Chair Cathy McMorris Rodgers (R-Wash.) and ranking member Frank Pallone (D-N.J.) recently circulated a discussion draft of the American Privacy Rights Act (APRA). This legislation aims to enable individuals to opt out of targeted advertising, authorize civil action for privacy rights violations, and replace the current fragmented state-level data privacy regulations, among other measures.

In a recent subcommittee markup, McMorris Rodgers described the bill as a pivotal chance for change. “It gives people the right to control their personal information online, something the American people overwhelmingly want. They’re tired of having their personal information abused for profit,” she emphasized.

However, industry leaders argue that the bill, as currently drafted, would devastate the advertising industry. Bob Liodice, CEO of the Association of National Advertisers (ANA), and Marla Kaplowitz, CEO of the American Association of Advertising Agencies (4A’s), voiced their concerns in a letter to congressional leadership and committee staff. “The current draft of the APRA also fails the constitutionality test, as the proposed bans and undue restrictions would violate the First Amendment’s protections for truthful advertising, speech that both businesses have a right to speak and consumers have a right to receive,” they asserted.

Privacy for America, a coalition of companies and trade associations including ANA and 4A’s, also expressed strong opposition to the bill in a separate letter. They argue that the APRA would severely limit individual engagement by restricting targeted advertising, complicating efforts for mission-driven organizations such as churches and nonprofits to recruit donors or volunteers, and increasing market research costs. The group further contends that the bill would harm consumers by making it more challenging for law enforcement to track fraudsters and banning advertising to minors. “For example, the military, colleges, trade schools, and other organizations would simply be unable to find these individuals,” Privacy for America wrote.

Additionally, numerous state business groups have urged McMorris Rodgers and Pallone to implement “significant changes” to the data privacy bill. They argue that the APRA’s robust private right of action would expose small businesses to unwarranted class action lawsuits. “The bill makes Main Street liable for the privacy violations of big tech companies on the theory that Main Street should police what the tech companies do on privacy even though our members are just not equipped to do that,” stated the letter.

Despite these objections, supporters of the bipartisan, bicameral APRA maintain that it provides essential consumer data protection and child safety provisions necessary to regulate large tech companies. Kara Frederick, director of The Heritage Foundation’s Tech Policy Center, remarked last Friday, “The unrestricted collection and exploitation of personal data by major tech platforms such as Google and Meta is at the root of nearly every challenge we face as conservatives. This pervasive surveillance—enabled by the extensive data harvesting capabilities of Big Tech—has given rise to a host of threats that undermine our fundamental rights and values. It’s time to put Big Tech on notice and let them know that the gravy train, built on the backs of Americans and our children, is over.”

Why This Matters: The outcome of this legislation will significantly impact the future of data privacy in the United States, potentially reshaping how personal information is managed and protected. It will also influence the operations of various industries, particularly advertising, and their relationship with consumers.

Key Takeaways:

• Business and advertising groups demand changes to the American Privacy Rights Act.
• APRA aims to allow individuals to opt out of targeted advertising and take civil action for privacy violations.
• Industry leaders argue the bill could devastate the advertising sector and violate First Amendment rights.
• Privacy for America claims the bill would hinder law enforcement and harm consumers by banning ads to minors.
• Supporters believe APRA is crucial for consumer data protection and child safety against Big Tech exploitation.