In Letter to Congress, Consumer Watchdog Outlines Weaknesses in the American Privacy Rights Act

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May 22, 2024, 16:26 ET

LOS ANGELES, May 22, 2024 /PRNewswire/ -- Ahead of the bill's markup Thursday, Consumer Watchdog sent a letter to the Chairs of the House Energy & Commerce Committee and the Innovation, Data, and Commerce Subcommittee addressing the flaws of the American Privacy Rights Act (APRA) and how it would weaken data privacy rights for Californians.

Because of preemption language in the proposed bill, APRA would wipe away years of progress made in California and in nearly 20 states that have passed similar laws across the country, stated the advocacy group. Nearly 10 million Californians voted for strong data privacy rights when they passed CPRA. CPRA is unique because it gives Californians a baseline of rights that can be improved upon over time, but cannot be eroded by legislators, said Consumer Watchdog.

"APRA would put a lid on California's progress in the data privacy space, likely never to be opened again," said Justin Kloczko, tech and privacy advocate at Consumer Watchdog.

Read the letter here.

Under the bill, the authority of California's top privacy enforcer, the California Privacy Protection Agency (CPPA), would be greatly reduced, said Consumer Watchdog. It will be replaced with the Federal Trade Commission (FTC), which is in the middle of many important antitrust battles and does not gain additional funding under APRA, stated Consumer Watchdog. Per the bill, the FTC will have two years from when the law is enacted to draft regulations.

"That's a lot of time for people's data to change hands and for rogue algorithms to do damage," said Kloczko. "Technological innovation moves fast. But Californians have protections right now."

The bill is similar to the American Data and Privacy Protection Act (ADPPA) of 2022, which stalled after then-House Speaker Nancy Pelosi raised concerns about it. Last month, Sen. Maria Cantwell (D-WA), and Rep. Cathy McMorris Rodgers (R-WA) unveiled APRA, which would give Americans rights surrounding how companies use, share or sell their data.

But it takes away strong rights in California, many of which are in effect right now, including:

Opt out rights in effect right now. The ability to limit the use of sensitive personal information, to opt out of the sharing and selling of your personal information for targeted advertising, to know how personal information is used by businesses, and the ability to correct or delete it are all protections Californians would lose for years were this bill approved.
Protections for sensitive information, such as sexual orientation, union membership, and immigration status. APRA does not include those categories in the definition of sensitive covered data.
Protections against profiling.
Protections against targeted advertising. Under APRA, service providers will still be able to combine data to execute targeted advertising.
Protections against companies that collect or share data with a local or federal agency. Service providers are exempt under APRA.
Progress made surrounding artificial intelligence and automated decision-making technology. The CA privacy agency is currently drafting landmark rules surrounding a right to opt-out of the use of personal information with respect to training automated decisions.
A stronger private right of action for data breaches. APRA would move all cases to federal court, where it is harder for consumers to seek remedies.