The American Data Privacy Protection Act (ADPPA) could change the landscape of its field. With bipartisan support, the United States could see massive overhauls in data privacy policy if it continues through the system.
What does the bill contain, and how does it affect American citizens and their data?
ADPPA Explained
This bill has surpassed every other bill of its kind down the legislative process as data privacy becomes more of an important topic. Data breaches are rampant, and online users are more aware of how companies exploit data.
The ADPPA would set guidelines on how companies use data. It protects data like user identifying information, social security numbers, and emails. It would also set standards for online security measures, some including:
- Requiring proper transparency. This includes data collection, usage, and distribution.
- Notifying people of their rights. Consumers would consent to how business handle their data, including the right to delete or change it.
- Enforcing data security. Entities would be required to adopt practices that meet requirements.
- Limiting third-party collection. Many third-party services exclusively deal with transferring data, which could give them regulations to meet or comply with auditing.
- Giving protection to youth. Creating extra safety for individuals under 17 is critical, such as limiting targeted advertising.
Some in the cybersecurity sector believe these defining characteristics could present data protection liability concerns, as the specificity of terms like “covered data” are ever-expanding.
Luckily, other nations are noticing the relevance of creating data privacy and protection statutes. So, people are able to gain a more complete perspective on the potentially neglected facets of compliance.
GDPR vs. ADPPA
The General Data Protection Regulation (GDPR) is the law in the European Union that contains similar principles to the ADPPA. For instance, if EU participants are not compliant, they will be fined up to 4% of their annual global turnover or €20 million.
The similarities demonstrate how international concerns about data privacy cross oceans and borders, but the differences are even more telling.
What are the differences?
The primary goals of these laws are to hold businesses — or covered entities — accountable for appropriate security levels and data sharing. However, omissions from the ADPPA included in the GDPR could cause questions. In the ADPPA:
- Covered data does not include employee information or what’s already in the public domain.
- Covered entities do not encompass governmental bodies.
- Small businesses will not be held to the same standards as larger entities to lessen administrative and financial burdens.
- Third-party businesses under the same group would not be defined as different companies, excluding them from specific third-party requirements.
- Standards for international data transfers are not explicitly defined.
This bill appears less exhaustive. This could be for bipartisan support, but it also leaves the window open for future legislation. A more comprehensive bill could arise in the U.S. in the future.
Effects on Businesses
As countries around the world instill data privacy laws into their foundation, everyone needs to stay informed. Communication worldwide increases every second, and the ability to collaborate is essential for the global economy.
Businesses dealing across borders will want to know the laws associated with their nation to be sure everyone complies. The rules are constantly evolving, so companies must be attentive.
This also means empowering cybersecurity infrastructure. Businesses must avoid issues like data breaches as much as possible, so data protection services are an inarguable expense for every company.
They must train employees on strategies and implement security benchmarks.
Data Collection Issues
As businesses use consumer and user data, it’s important to remember the intention behind collecting it in the first place. Most data privacy laws — like the GDPR — limit data collection.
Concerns over developing AI may also incite restrictions since users are skeptical about the intentions behind computerized intelligence.
Machines are getting smarter, and it raises questions. What is necessary to run businesses successfully? Do they require all the data they claim they need? How much reliance do companies place on personal information?
Legislation like the ADPPA and GDPR forces businesses to be reflective and shift priorities to follow guidelines.
Unifying Data Protection Under the ADPPA
Data privacy issues are newer territory, so there will be growing pains as nations continue to be more open about businesses using consumer data. The future is uncertain, especially as bills potentially turn to law and are given a test run.
Governments may notice gaps and fight for more protections in the future as AI and technology become more advanced.
Federal privacy statutes are becoming the norm, and it will be fascinating to see how businesses and nations react to data privacy usage developments.