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Financial Services Law Insights and Observations

House Members Introduce Mobile Device Privacy Legislation

Privacy/Cyber Risk & Data Security

Fintech

On September 12, Representatives Edward Markey (D-MA) and Diana DeGette (D-CO) unveiled new legislation to establish consumer privacy protections with regard to mobile applications. The Mobile Device Privacy Act (H.R. 6377) would direct the FTC to promulgate regulations that require upfront disclosure of (i) the existence of any monitoring software on a device, (ii) the types of information that could be collected, (iii) the identity of those with access to the collected information, and (iv) the expected use of the information. Prior consumer consent to the collection of information and procedures for enabling consenting device owners to stop such collection would also be required. In addition, the bill would mandate information security practices in connection with information collected from mobile device users, and establish an enforcement regime involving both the FTC and the FCC, as well as state attorneys general and private suits.