Industry groups push for federal data privacy legislation

More than 30 industry groups are urging Congress to enact federal data privacy legislation that would create a national standard to replace the current mix of state laws, according to The Record, a news site by cybersecurity firm Recorded Future.

In a letter sent to Congressional leaders, the organizations argued that a national privacy standard would benefit businesses by reducing regulatory complexity and promoting competition, which could lower costs and increase consumer access. However, previous efforts to pass comprehensive federal privacy legislation have stalled due to disagreements over whether they preempt state laws and whether individuals should be allowed to sue for violations. The letter outlines proposed measures such as consumer rights to be made aware of their data being processed, be able to correct or delete their personal information, and opt out of targeted advertising. It also calls for companies to obtain consent before processing sensitive data and to limit data collection to what is necessary. Notably, the letter excludes regulation of data brokers, a major concern for privacy advocates. The groups suggest that the legislation should focus on companies handling large-scale data and not burden small businesses.