Two data privacy proposals expected to be presented Wednesday and disclosed exclusively to CNBC aim to override nearly twenty state regulations to establish a federal benchmark regulating how technology and finance firms manage consumer information.
The measures — the SECURE Data Act, pertaining to technology enterprises, and the GUARD Financial Data Act for financial service providers – are structured to collaborate in creating a unified national criterion. House Energy and Commerce Chair Brett Guthrie, R-Ky., alongside House Financial Services Chair French Hill, R-Ark., are endorsing the initiatives, likely boosting their chances for initial voting next month.
Guthrie stated to CNBC that the SECURE Act would “put an end to the confusing state-by-state patchwork of laws that fail consumers and small businesses alike.” He indicated that the legislation would resemble certain statutes already enacted by states like Kentucky.
Additionally, aside from overriding state regulations, the initiatives would empower individuals to review, amend or erase their private data, as well as opt out of targeted advertising and the sale of their information, as per the bill text first revealed by CNBC.
Neither initiative would grant individuals the right to litigate against companies for data privacy infractions, a point that Democratic legislators have advocated for in prior data privacy measures.
Congress has made several attempts over recent years to find the appropriate equilibrium on data privacy protections. In addition to the divides between Republicans and Democrats, intraparty disagreements have caused previous initiatives to face challenges in garnering extensive backing. Two years ago, a scheduled vote within the Energy and Commerce Committee concerning a data privacy measure was aborted at the last minute after a number of Republicans obstructed it.
Guthrie is endeavoring to circumvent that situation this time. Last year, he established a task force to cultivate backing among Republican members and gather feedback. The approach is to first guarantee that Republicans possess sufficient votes to propel the measure through the committee, and subsequently work on securing bipartisan support, according to committee personnel. The House Financial Services Committee is adopting a similar strategy.
