Experts Highlight Nuances of Anti-fraud Data Collection in Senate APRA Testimony

A panel of cyber experts has endorsed the latest congressional effort to establish national data privacy standards but also provided critiques of the draft legislation known as the American Privacy Rights Act (APRA) of 2024.

The draft bill, introduced by Senate Commerce, Science, and Transportation Committee Chair Maria Cantwell and House Energy and Commerce Committee Chair Cathy McMorris Rodgers, aims to create clear national data privacy rights for Americans, limiting the ability of large tech companies to use personal data without permission, especially through algorithms used in AI applications.

During a Senate Commerce, Science, and Transportation Subcommittee hearing last week, chaired by John Hickenlooper, cyber experts emphasized the urgent need for the APRA. James Lee from the Identity Theft Resource Center highlighted the critical role of data in combating fraud and identity crimes, urging caution against overly restrictive data minimization that could hinder essential business operations.

“We need [data] for some very specific purposes because it’s used for anti-fraud, it’s used for identity verification, to prevent identity crimes,” Lee explained. “In our zeal to protect consumers and give them access, we also have to be realistic that we still need some data.”

Prem Trivedi from New America’s Open Technology Institute voiced concerns about the draft’s proposal to transfer preemption authority from the FCC to the FTC, arguing that the FCC’s expertise in privacy should not be undermined. Jake Parker of the Security Industry Association highlighted the risk of a fragmented 50-state patchwork of data privacy laws if a national standard is not established soon, noting significant improvements in the current draft compared to previous versions.

“Three years ago, there was one state that had their data privacy law, and now there’s 19,” Parker said. “There is potential that if they’re different enough, that a 50-state patchwork of laws could harm the economy.”

The APRA, first introduced on a bipartisan basis in the last Congress, had passed the House Energy and Commerce Committee with strong support but stalled afterward. With the upcoming 2024 elections, there is a narrow window to advance the bill, making the timing critical. Senator Hickenlooper expressed optimism about working on data privacy legislation on a bipartisan basis during this period, stressing the need to maintain urgency to achieve a national standard.

While there is a consensus on the urgency of establishing national data privacy standards, the experts suggest careful consideration of the draft’s provisions to ensure it effectively balances consumer protection with business needs and leverages the expertise of existing regulatory bodies.

Source: MeriTalk

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May 14, 2024 – by Cass Kennedy