The American Privacy Rights Act (AI, Data Centers, Fraud)
The American Privacy Rights Act
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The CRS Legal Sidebar LSB11161, titled "The American Privacy Rights Act", is a Congressional Research Service report (updated May 31, 2024) that analyzes a proposed comprehensive federal consumer data privacy framework. Background and Overview
On April 7, 2024, Senate Commerce Committee Chair Maria Cantwell and House Energy & Commerce Committee Chair Cathy McMorris Rodgers jointly released a discussion draft of the American Privacy Rights Act (APRA). This bipartisan draft aimed to establish the first nationwide comprehensive privacy law in the U.S., building heavily on the earlier American Data Privacy and Protection Act (ADPPA, H.R. 8152 from the 117th Congress). An updated House draft was released before a May 23, 2024, subcommittee markup, incorporating changes like a new Title II amending the Children's Online Privacy Protection Act (COPPA).
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Scope and Key Definitions
- Covered entities: Most commercial entities, nonprofits, and individuals that determine the purposes/means of handling covered data (exemptions include small businesses).
- Covered data: Any information that identifies or is reasonably linkable to an individual.
- Sensitive covered data (with stricter rules): Includes government IDs, genetic/health/financial info, precise geolocation, biometric/genetic data, and data about individuals under 17. The FTC could expand this category via rulemaking.
Individual Rights and Business Obligations
Individuals would gain rights to access, correct, delete, and export their data (with faster response times for large data holders). Covered entities must adhere to:
- Data minimization — Collect/process/retain/transfer data only if necessary for requested services or one of 15–16 permitted purposes (e.g., fraud prevention, legal compliance).
- Opt-out rights for data transfers and targeted advertising (affirmative consent required for sensitive data transfers or biometric/genetic handling).
- Transparency, data security, algorithm opt-outs, bans on discrimination based on protected classes, "dark patterns," and retaliation against rights exercisers (with some exceptions, like loyalty programs).
Additional Requirements
- Large data holders (high-revenue entities meeting data thresholds): Must perform algorithm/privacy impact assessments and have CEOs certify FTC compliance annually.
- Data brokers: Must register with the FTC, maintain public websites linking to a registry, and support opt-out mechanisms (e.g., "Do Not Collect" in the original draft, expanded to centralized "Delete My Data" requests in the updated draft).
Enforcement
- Primary enforcement by the FTC (treating violations as unfair/deceptive acts, with civil penalties, injunctions, and a victim compensation fund).
- State attorneys general could also enforce (seeking injunctions, penalties, etc.).
- Private right of action allows individuals (and potentially others in the updated draft) to sue for violations involving sensitive/biometric/genetic data, rights infringements, or breaches — with notice/cure periods (exceptions for substantial harm), damages, injunctions, and fees. Arbitration clauses would be limited in certain cases.
- Should we not have stronger DO NOT Call Lists and Higher Penalties for Abuse ?
- Plus, greater penalties for fraud.
Preemption and Interaction with Other Laws
The APRA would preempt conflicting state laws but preserve certain areas (e.g., employee privacy, health data protections, some consumer laws). It would largely displace Communications Act privacy rules while preserving laws like HIPAA, GLBA, FCRA, FERPA, and COPPA (with amendments in Title II of the updated draft). Title II integrates some APRA protections into COPPA (e.g., targeted ad bans for under-17s) but differs from separate COPPA 2.0 proposals by not extending to teens (13–17) or broadening "actual knowledge" standards.
Comparisons and Stakeholder Reactions
The APRA differs from ADPPA in areas like full small-business exemptions, immediate private rights of action, algorithm opt-outs, and narrower preemption (e.g., not explicitly saving Illinois' BIPA). It received bipartisan praise for compromises but criticism over preemption scope, minor protections, data broker rules, and Title II's COPPA changes. Potential litigation could involve First Amendment challenges (e.g., to ad restrictions) or preemption disputes .This report (authored by Peter J. Benson, Jonathan M. Gaffney, Chris D. Linebaugh, Matthew D. Trout, and Clay Wild) provides a neutral legal/policy analysis and notes the draft's evolution through May 2024. As of February 2026, no comprehensive federal privacy law like APRA has been enacted, though the document remains a key reference on the topic. The full PDF is available via the Congress.gov link.
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