Global technology companies testify before Senate Commerce Committee on need for federal consumer data privacy legislation
On September 26, the Senate Committee on Commerce, Science, and Transportation held a hearing entitled “Examining Safeguards for Consumer Data Privacy” to discuss whether federal lawmakers should write a broad federal online privacy law in the wake of the European Union’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) of 2018, which was amended on September 23. Committee Chairman, Senator John Thune, noted that the September 26 hearing was the first in a series of hearings the Committee plans to hold to discuss consumer data privacy concerns. Testifying before the Committee were executives representing six global technology and telecommunications companies who all agreed that there is a need for federal consumer privacy safeguards that would give consumers more control over the way their data is used. The witnesses also supported the idea of engaging in further discussions with the Committee regarding the FTC’s enforcement powers under its current authority to determine whether the agency needs more resources and tools to carry out its responsibilities effectively. However, the witnesses cautioned that Congress needed to strike an appropriate balance between industry accountability and giving government agencies unchecked power. The witnesses also voiced their opposition to proposed legislation that would require businesses to notify consumers of data breaches within 72 hours of their discovery.
Among other things, the hearing also discussed topics addressing: (i) GDPR compliance burdens; (ii) the need for federal privacy laws to preempt the growing “patchwork” of inconsistent state laws; (iii) pitfalls of mandatory opt-in requirements for consumers; (iv) data use transparency and mandatory disclosures; and (v) efforts undertaken by companies to monitor violations of the Children’s Online Privacy Protection Act, particularly with respect to both in-house and third-party apps offered by the several of the witnesses’ companies.