A bipartisan group of lawmakers has drafted a federal privacy bill that would largely preempt most state privacy laws and include a limited private right of action for individuals. Israeli corporations involved in technology and AI systems should consider these updates.
The compromise draft – put forth by House Energy and Commerce Chair Representative Frank Pallone (D-NJ), ranking member Representative Cathy McMorris Rodger (R-WA), and Senator Roger Wicker (R-MS), ranking member of the Senate Commerce Committee – marks the furthest lawmakers have ever come in efforts to reach a deal on federal privacy legislation.
With the two previous key points of contention now apparently resolved, and both parties in general agreement on the protections that privacy legislation should include, the most crucial variable may well be timing. It remains unclear whether Congress will be able finalize the (as yet undisclosed) draft bill before the congressional recess in August and midterm elections this November.
Coupled with increasingly aggressive federal enforcement of privacy laws – as evidenced by the Federal Trade Commission’s growing use of tools like “algorithmic disgorgement” that require companies to destroy algorithms and AI models built and trained on improperly obtained personal data – the passage of federal privacy legislation should prompt companies to take proactive steps to update and align their governance, compliance, and risk management activities related to privacy.
Such steps would help to ensure business resilience and sustained access to personal data down the line.
Learn more about this developing story and its implications for your business by contacting us via PrivacyGroup@dlapiper.com.