U.S. Senator Kirsten Gillibrand announces the Data Protection Act 2021

30. June 2021

U.S. Senator Kirsten Gillibrand announced in a press release on June 17, 2021, the reintroduction of the Data Protection Act of 2021. The intention is to create an independent federal agency, the Data Protection Agency, to better equip data protection in the U.S. for the digital age.

Since the first bill was drafted in 2020, it has undergone several updates. For example, the paper will now include adjusted rules to protect data subjects against privacy violations, monitor risky data practices, and examine social, ethical, and economic impacts of data collection. In the press release, Gillibrand explains that the DPA will have three main core tasks. The core tasks are driven by the goal of preventing risky data practices and regulating the collection, processing and sharing of personal data.

The first goal, she says, is to give individuals control and protection over their own data. To this end, data subjects should be given the right to establish and enforce data protection rules. To implement this, emphasis would also have to be placed on complaint handling. The authority would also be given wide-ranging powers. For example, it would be able to conduct investigations and administer civil penalties, injunctions and other appropriate remedies to combat data privacy violations.

The second task would be to promote fair competition in the digital market. This can be achieved, for example, through the development and refinement of model standards, guidelines and policies to protect privacy and data protection. Companies should find it easier to deal with data protection. At the same time, the U.S. should be able to keep pace with leading nations in data protection.

In this context data aggregators are to be monitored by the Data Protection Agency by maintaining a publicly available list of such data aggregators that meet certain thresholds. The FTC (Federal Trade Commission) would at the same time be required to report on the privacy and data protection implications of mergers involving major data aggregators or involving the transfer of personal data of 50,000 or more individuals. The bill would also lastly prohibit data aggregators from certain acts. For example, it would prevent the commission of abusive or discriminatory acts in connection with the processing or transfer of personal data. The goal, Gillibrand says, is also to prevent the identification of a person, household, or device from anonymized data.

A third important task is to prepare the U.S. government for the digital age. The agency is supposed to contribute to more education on digital issues by advising Congress on new privacy and technology issues. She says the agency would also participate as the U.S. representative in international privacy forums. The goal also is to ensure consistent regulatory treatment of personal data by federal and state agencies. To that extent, the authority would act as an interface between federal and state agencies.

Senator Gillibrand commented as follows: “In today’s digital age, Big Tech companies are free to sell individuals’ data to the highest bidder without fear of real consequences, posing a severe threat to modern-day privacy and civil rights. A data privacy crisis is looming over the everyday lives of Americans and we need to hold these bad actors accountable. (…) The U.S. needs a new approach to privacy and data protection and it’s Congress’ duty to step forward and seek answers that will give Americans meaningful protection from private companies that value profits over people.”

Category: General · USA