Bill Overview
Title: American Data Privacy and Protection Act
Description: This bill establishes requirements for how companies, including nonprofits and common carriers, handle personal data, which includes information that identifies or is reasonably linkable to an individual. Specifically, the bill requires most companies to limit the collection, processing, and transfer of personal data to that which is reasonably necessary to provide a requested product or service and to other specified circumstances. It also generally prohibits companies from transferring individuals' personal data without their affirmative express consent. The bill establishes consumer data protections, including the right to access, correct, and delete personal data. Prior to engaging in targeted advertising, the bill requires companies to provide individuals with a means to opt out of such advertising. The bill also provides additional protections with respect to personal data of individuals under the age of 17. It further prohibits companies from using personal data to discriminate based on specified protected characteristics. Additionally, companies must implement security practices to protect and secure personal data against unauthorized access, and the Federal Trade Commission (FTC) may issue regulations for complying with this requirement. The bill provides for enforcement of these requirements by the FTC and state attorneys general. Beginning two years after the bill takes effect, individuals may, subject to certain notification requirements, bring civil actions for violations of the bill. Finally, the bill preempts state laws that are covered by the provisions of the bill except for certain categories of state laws and specified laws in Illinois and California.
Sponsors: Rep. Pallone, Frank, Jr. [D-NJ-6]
Target Audience
Population: People whose personal data is collected or processed by companies globally
Estimated Size: 331000000
- The bill affects all individuals whose personal data is collected, processed, or transferred by companies, including nonprofits and common carriers.
- The global internet usage rate as of recent estimates is approximately 4.95 billion people, suggesting a broad global impact since data privacy affects almost all internet users.
- It specifically impacts those who engage with services provided by companies that fall under the jurisdiction of this law.
- Children under 17 will receive additional protections, suggesting an impact on this age group's data privacy.
- Given the global nature of the internet, non-US residents interacting with US-based digital services may also be indirectly affected.
Reasoning
- The American Data Privacy and Protection Act affects all individuals in the US whose personal data is collected, processed, or transferred by companies. Thus, people from diverse demographics including young children, adults, digital marketers, tech workers, etc., would feel the impact.
- Children and adolescents under 17 will experience enhanced privacy protections, while professionals working in technology and digital marketing might see an increase in compliance requirements impacting their operations.
- The policy is designed to improve overall privacy well-being by imposing limits on data handlers, which may result in varying levels of adjustment on personal lifestyles and business operations.
- Urban areas with higher internet penetration and data-driven businesses may experience more noticeable shifts compared to locations with less digital engagement.
- The budget allows for considerable, but not unlimited, enforcement and implementation of the policy. This means that while the policy can benefit a wide swath of the population, its reach will be influenced by financial resource allocation.
Simulated Interviews
Data Analyst (San Francisco, CA)
Age: 42 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I believe data privacy is crucial in the digital age. This law is a step in the right direction.
- As a data analyst, it will mean more procedures for us, but it's worth it for the consumer benefits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 5 |
Digital Marketing Specialist (Chicago, IL)
Age: 24 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- It's going to make my job more challenging due to increased regulations.
- But, as a consumer, I appreciate the added privacy protections.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 8 | 4 |
Student (Austin, TX)
Age: 17 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- I’m glad there are better protections for teens like me. I feel safer online.
- Hope these companies don’t misuse our data as much anymore.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 4 |
| Year 3 | 8 | 3 |
| Year 5 | 9 | 3 |
| Year 10 | 9 | 2 |
| Year 20 | 8 | 2 |
Software Developer (New York, NY)
Age: 30 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- This law is important for the future of digital privacy.
- Professionally, it might mean more work to comply, but it aligns with ethical standards.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 6 |
Retired (Atlanta, GA)
Age: 65 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- The policy sounds reassuring but I’m not sure how much it will affect me directly since I don't use the internet as much.
- I’m always worried about scams so data protection is a relief.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 4 |
| Year 10 | 6 | 4 |
| Year 20 | 7 | 3 |
Nonprofit Manager (Boulder, CO)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- Our nonprofit needs to adjust systems to comply, which is some work but ultimately good for trust.
- Privacy reassures our donors, adds value to our organization.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 5 |
Small Business Owner (Seattle, WA)
Age: 34 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- The policy means I need to spend more on compliance, which isn’t ideal when running a small business.
- I hope it helps build trust with my customers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 4 |
Freelance Writer (Los Angeles, CA)
Age: 28 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- This law provides me with peace of mind regarding my personal data.
- I’ll be interested to see how this impacts tech company practices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Government Employee (Washington D.C.)
Age: 37 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- The American Data Privacy and Protection Act aligns with the consumer rights work I focus on in my career.
- It’s a step toward reclaiming digital privacy for citizens.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 9 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 5 |
High School Teacher (Des Moines, IA)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 9/20
Statement of Opinion:
- I'm relieved that my students have more protection under this policy.
- It’s crucial that minors are safeguarded in the digital world.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 4 |
Cost Estimates
Year 1: $500000000 (Low: $300000000, High: $700000000)
Year 2: $400000000 (Low: $250000000, High: $600000000)
Year 3: $400000000 (Low: $250000000, High: $600000000)
Year 5: $300000000 (Low: $200000000, High: $500000000)
Year 10: $300000000 (Low: $200000000, High: $500000000)
Year 100: $100000000 (Low: $50000000, High: $150000000)
Key Considerations
- The dynamic nature of data privacy regulations where compliance requirements could change in response to new technology developments or identified loopholes.
- Potential legal challenges and their outcomes regarding the preemption of state laws.
- The capacity of the FTC and state attorneys general to effectively enforce the legislation across a vast and varied digital landscape.
- Effectiveness of the regulation in truly reducing consumer harm from data misuses and whether adjustments will be needed over time.