Draft Federal Privacy Bill Released
A long-awaited draft of a Congressional Bill was released on May 4 that, if enacted, would enhance consumer privacy protections and would push American privacy legislation closer to the strict regime used in Europe. The bill is broad in scope, applying both to the online and offline collection of personal information and also regulating certain aspects of behavioral advertising. In general, the bill requires companies that collect covered information to provide notice of their privacy practices before collecting any covered information. Regarding consent to collect, use or disclose covered information, the bill generally provides:
- an opt-out framework for collecting covered information as long as the company collecting information provides notice of its privacy policy, as required by the bill
- an opt-in framework for collection or disclosure of sensitive information (sensitive information includes medical records, race, ethnicity, religious beliefs, sexual orientation, financial records, and precise geographical location)
- an opt-in framework for retroactive material changes to a privacy policy
- on opt-in framework for disclosing covered information to unaffiliated parties
- an opt-in framework for disclosing location-based information
Opt-in consent requires express, affirmative consent. The bill’s sponsors invited industry members to submit comments and intend to introduce the bill in Congress sometime this summer.
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