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Financial Services Law Insights and Observations

Democratic senators ask FTC to reconsider privacy rulemaking

Federal Issues FTC Agency Rule-Making & Guidance Privacy/Cyber Risk & Data Security U.S. Senate

Federal Issues

On September 20, nine Democratic Senators sent a letter to FTC Chair Lina M. Khan requesting that the FTC draft new rules that better protect consumers’ personal data and privacy. The Senators argued that ongoing data breaches and privacy violations have “shown the limits of the FTC's general prohibition on unfair and deceptive practices.” Among other things, the Senators urged the agency to consider a rulemaking process that has “strong protections for the data of members of marginalized communities, prohibitions on certain practices (such as the exploitative targeting of children and teens), opt-in consent rules on use of personal data, and global opt-out standards.” The Senators also pointed out that the FTC has substantial expertise in the legal process regarding enforcement and privacy authorities, such as those under the Children’s Online Privacy Protection Act and the Fair Credit Reporting Act. Therefore, a rulemaking initiative led by the FTC would advance congressional efforts in developing federal privacy legislation through “research, public comment record, and dialogue.”

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