Proposed U.S. Data Privacy Bill Likely To Put Offenders Behind Bars

Sen. Ron Wyden (D-OR) introduced a new data privacy bill aimed at forcing tech platforms to mind their own business and face tough penalties if they fail to meet new privacy and security standards. Wyden’s “Mind Your Own Business Act” is the official version of a draft bill. The legislation would empower the Federal Trade Commission (FTC) with new authorities to fine tech companies that violate user privacy and bolster the agency with more resources to better regulate the industry in the future. The proposed U.S. data privacy legislation would impose penalties stiffer than current European rules while giving American consumers a “one-click” option to block companies from selling or sharing their personal information.

If approved, the “Mind Your Own Business Act” would go further than the European Union’s (EU) General Data Protection Regulation (GDPR), with fines for corporate violators up to 4 percent of annual revenues and criminal penalties of up to 20 years for executives caught lying to authorities about misuse of personal data.

Wyden’s bill would amend the Federal Trade Commission Act by tightening restrictions and imposing stiffer penalties on corporate violators. It also proposes tax penalties based on executive compensation. Along with giving data regulators the authority to be an “effective cop on the beat,” the proposal would give consumers greater control over their data, compel corporate transparency on how data are used and shared while holding executives personally responsible for violations.

It also would levy new tax penalties on corporate executives caught misusing or sharing of private information. Fines in the form of a tax would be based on executive pay. The provision is aimed squarely at executives of social media companies like Facebook that have thus far escaped harsh penalties for data privacy and other breaches.

Wyden’s bill would institute a federal Do Not Track requirement, which will give users the option to opt out of data tracking that’s used to target ads. Platforms like Facebook and Twitter would also be required to offer “privacy-protecting” versions of their products for a fee. Interestingly, Wyden’s measure would extend the Federal Communications Commission’s Lifeline program for low-income people to use to obtain these privacy-focused versions of products so privacy does not become a luxury good.

Wyden’s proposal would not preempt state laws such as the California Consumer Privacy Act, which takes effect on January 1, 2020.