Online Privacy Bill Gains Momentum, but Hurdles Remain

Bipartisan legislation to bolster consumers’ online privacy rights gained momentum at a House hearing June 14, even as some tech industry representatives raised concerns that could slow its progress. The draft legislation would put new limits on how technology companies can collect and use consumers’ data. It drew strong backing from both Republicans and Democrats on the House Energy and Commerce Committee’s consumer protection subcommittee, as well as from several business and consumer representatives who testified. But the hearing also highlighted a range of lingering challenges that remain as key lawmakers seek to move the rapidly developing bill through Congress this summer. Several witnesses at the hearing suggested changes to strengthen or weaken major protections in the legislation, showing that the effort could still run into trouble. Lawmakers have tried off and on for decades to pass such a bill, without success, largely because of business opposition. But their efforts have been energized this year by a series of controversies over how people’s information is used. Under the draft bill, big tech companies would be limited to collecting, processing and transferring only the data that is reasonably necessary to provide their services. And for some sensitive categories of data, such as geolocation data or biometric information, the bill would prohibit transfer or restrict it to very limited circumstances. The legislation also includes broad antidiscrimination protections, and requires large data holders to conduct assessments of their algorithms to show the steps they are using to limit harms, among other measures.