Wade Clark Mulcahy LLP

On June 21, 2022, the<em> <a href="https://www.wcmlaw.com/wp-content/uploads/2022/07/American-Data-Privacy-and-Protection-Act.pdf">American Data Privacy and Protection Act</a></em> (ADPPA) was released by the House Committee on Energy and Commerce.  The purpose of the Act is to instill uniformity among members of the privacy community and those impacted by privacy legislation.  Because states have enacted their own privacy laws, uniformity among multi-state sectors is long overdue.  The Act is the first bipartisan, and bicameral comprehensive privacy and data security proposal.  Further, the practical purpose of the bill is as follows: (1) provide consumers with foundational privacy rights – such as requiring affirmative consent to allow companies to share sensitive and private information; (2) create oversight mechanisms to ensure data is properly stored and protected; and (3) to establish meaningful enforcement.

While this is not a complete list, this legislation proposes pivotal changes in the following areas: (1) protecting the rights of children and minors by monitoring marketing directed at minors; (2) requiring the Federal Trade Commission to establish a publicly available central registry of data brokers whose principal source of revenue is derived from processing protected data; (3) requiring all non-exempt entities to appoint a Chief Privacy Officer subject to annual executive certifications and biennial audits; and (4) establishing a uniform standard of industry-based terminology such as “sensitive data”.

It is no secret that technology evolves faster than legislators create laws, however the American Data Privacy and Protection Act is well overdue to protect consumers, as well as entities, from unfair and invasive data collection practices.

Thanks to Paige Baldwin for her contribution to this article.  Should you have any questions, please contact <a href="mailto:mcare@wcmlaw.com">Matthew Care</a>.