US lawmakers reach agreement on data privacy legislation

The legislation would restrict the collection of consumer data by technology companies and empower users to prevent the sale of personal information or demand its deletion.

Two key US lawmakers have reached an agreement on draft bipartisan data privacy legislation, as per a report published by Reuters on Sunday. The legislation would restrict the collection of consumer data by technology companies and empower Americans to prevent the sale of personal information or demand its deletion.

Democratic Senator Maria Cantwell, chair of the Commerce Committee, and Republican Representative Cathy McMorris Rodgers, chair of the House Energy and Commerce Committee, struck the deal. It would grant individuals control over the use of their personal information and mandate disclosure if data is transferred to foreign adversaries.

Congress has been debating online privacy protections since at least 2019, primarily due to concerns about the use of data by social media companies like Meta Platforms’ Facebook, Alphabet’s Google, and ByteDance-owned TikTok, but has yet to reach a consensus.

Aides stated they hoped to advance legislation soon. Meta, TikTok, and Google were not immediately available for comment.

(For top technology news of the day, subscribe to our tech newsletter Today’s Cache)

In a joint statement, the lawmakers said the plan would provide the Federal Trade Commission (FTC) and state attorneys general with broad authority to oversee consumer privacy issues and establish “robust enforcement mechanisms to hold violators accountable,” including a private right of action for individuals.

While the bill does not prohibit targeted advertising, it does allow consumers to opt-out. The FTC would establish a new bureau focused on privacy and could impose fines for privacy violations, which would also apply to telecommunications companies.